Article IX § 11

There shall be established a state school aid fund which shall be used exclusively for aid to school districts, public community colleges, public career and technical education programs, scholarships for students attending either public community colleges or public career and technical education programs, and school employees’ retirement systems, as provided by law. Sixty percent of all taxes imposed at a rate of not more than 5% on retailers on taxable sales at retail of tangible personal property, 100% of the proceeds of the sales and use taxes imposed at the additional rate of 2% provided for in section 8 of this article, and other tax revenues provided by law, shall be dedicated to this fund. In addition, an amount equal to 12.3% of the use tax imposed at a rate of not more than 5% shall be dedicated to this fund as provided by law. Payments from this fund shall be made in full on a scheduled basis, as provided by law. Beginning in the 1995-96 state fiscal year and each state fiscal year after 1995-96, the state shall guarantee that the total state and local per pupil revenue for school operating purposes for each local school district shall not be less than the 1994-95 total state and local per pupil revenue for school operating purposes for that local school district, as adjusted for consolidations, annexations, or other boundary changes. However, this guarantee does not apply in a year in which the local school district levies a millage rate for school district operating purposes less than it levied in 1994.

Proposal 15-1 also amends art 9, §§ 8 & 10

There shall be established a state school aid fund which shall be used exclusively for aid to school districts, higher education, public community colleges, public career and technical education programs, scholarships for students attending either public community colleges or public career and technical education programs, and school employees’ retirement systems, as provided by law. Sixty percent of all taxes imposed at a rate of 4% not more than 5% on retailers on taxable sales at retail of tangible personal property, 100% of the proceeds of the sales and use taxes imposed at the additional rate of 2% provided for in section 8 of this article, and other tax revenues provided by law, shall be dedicated to this fund. In addition, an amount equal to 12.3% of the use tax imposed at a rate of not more than 5% shall be dedicated to this fund as provided by law. Payments from this fund shall be made in full on a scheduled basis, as provided by law. Beginning in the 1995-96 state fiscal year and each state fiscal year after 1995-96, the state shall guarantee that the total state and local per pupil revenue for school operating purposes for each local school district shall not be less than the 1994-95 total state and local per pupil revenue for school operating purposes for that local school district, as adjusted for consolidations, annexations, or other boundary changes. However, this guarantee does not apply in a year in which the local school district levies a millage rate for school district operating purposes less than it levied in 1994.

Proposal 15-1 also amends art 9, §§ 8 & 10

There shall be established a state school aid fund which shall be used exclusively for aid to school districts, higher education and school employees’ retirement systems, as provided by law. Sixty percent of all taxes imposed at a rate of 4% on retailers on taxable sales at retail of tangible personal property, the proceeds of the sales and use taxes imposed at the additional rate of 2%, and other tax revenues provided by law, shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law.

For the purpose of funding a system of free public elementary and secondary schools defined by Section 2 of Article VIII, there is established a minimum per pupil foundation guarantee. The legislature may appropriate additional funds for instructional programs as provided by law. There shall be appropriated from the state school aid fund to each local school district an amount sufficient to guarantee that for the first 18 mills of ad valorem property taxes for local school district operating purposes levied by each local school district, the total state and local general revenue for operating purposes as defined by law for each membership pupil shall be not less than $4,800.00 in the state fiscal year 1993-94. However, the legislature shall provide by law that the total state and local general revenue for operating purposes for a local school district receiving state funds to meet the per pupil foundation guarantee under this paragraph shall be increased by not more than 10% per pupil per year. This foundation guarantee shall be adjusted each state fiscal year after 1993-94 by the same percentage as the weighted average percentage change as defined by law in the sales tax collections and lottery net revenue dedicated to the state school aid fund adjusted for tax rate changes and the yield generated from the first 18 mills levied for local school district operating purposes, in the immediately preceding state fiscal year, adjusted for any change in pupil membership.

The state shall guarantee that the additional 9 school operating mills provided for in Section 6 of this Article will yield not less than $100.00 per membership pupil per mill.

If a local school district levies less than 18 mills pursuant to a millage reduction required under Section 31 of this Article, the local school district shall receive the same state payments required by this section as if the district levied 18 mills.

For the 1993-94 state fiscal year, for a local school district that levies 27 mills for operating purposes in 1993, if the combined 1993-94 state fiscal year per pupil local revenue for operating purposes and the 1993-94 state fiscal year foundation guarantee payment is less than 103% of the 1992-93 state fiscal year total per pupil state and local general revenue for operating purposes, the district shall receive a supplemental payment per pupil for the difference.

For 1994-95 state fiscal year and each state fiscal year thereafter, the per pupil supplemental payment for a local school district that levies in that fiscal year 27 mills for operating purposes before the application of Section 31 of this Article is the per pupil supplemental payment from the immediately preceding state fiscal year reduced by the amount, if any, required to limit the district’s per pupil percentage change in total state and local general revenue for operating purposes to the annual percentage change in the state foundation guarantee.

Proposal A also amends art 4, § 41; art 9, §§ 3, 6, 8, & 10

There shall be established a state school aid fund which shall be used exclusively for aid to school districts, higher education and school employees’ retirement systems, as provided by law. One-half Sixty percent of all taxes imposed at a rate of 4% on retailers on taxable sales at retail of tangible personal property, the proceeds of the sales and use taxes imposed at the additional rate of 2%, and other tax revenues provided by law, shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law.

For the purpose of funding a system of free public elementary and secondary schools defined by Section 2 of Article VIII, there is established a minimum per pupil foundation guarantee. The legislature may appropriate additional funds for instructional programs as provided by law. There shall be appropriated from the state school aid fund to each local school district an amount sufficient to guarantee that for the first 18 mills of ad valorem property taxes for local school district operating purposes levied by each local school district, the total state and local general revenue for operating purposes as defined by law for each membership pupil shall be not less than $4,800.00 in the state fiscal year 1993-94. However, the legislature shall provide by law that the total state and local general revenue for operating purposes for a local school district receiving state funds to meet the per pupil foundation guarantee under this paragraph shall be increased by not more than 10% per pupil per year. This foundation guarantee shall be adjusted each state fiscal year after 1993-94 by the same percentage as the weighted average percentage change as defined by law in the sales tax collections and lottery net revenue dedicated to the state school aid fund adjusted for tax rate changes and the yield generated from the first 18 mills levied for local school district operating purposes, in the immediately preceding state fiscal year, adjusted for any change in pupil membership.

The state shall guarantee that the additional 9 school operating mills provided for in Section 6 of this Article will yield not less than $100.00 per membership pupil per mill.

If a local school district levies less than 18 mills pursuant to a millage reduction required under Section 31 of this Article, the local school district shall receive the same state payments required by this section as if the district levied 18 mills.

For the 1993-94 state fiscal year, for a local school district that levies 27 mills for operating purposes in 1993, if the combined 1993-94 state fiscal year per pupil local revenue for operating purposes and the 1993-94 state fiscal year foundation guarantee payment is less than 103% of the 1992-93 state fiscal year total per pupil state and local general revenue for operating purposes, the district shall receive a supplemental payment per pupil for the difference.

For 1994-95 state fiscal year and each state fiscal year thereafter, the per pupil supplemental payment for a local school district that levies in that fiscal year 27 mills for operating purposes before the application of Section 31 of this Article is the per pupil supplemental payment from the immediately preceding state fiscal year reduced by the amount, if any, required to limit the district’s per pupil percentage change in total state and local general revenue for operating purposes to the annual percentage change in the state foundation guarantee.

Proposal A also amends art 4, § 41; art 9, §§ 3, 6, 8, & 10

There shall be established a state school aid fund which, except as provided in this section, shall be used exclusively for aid to school districts and school employees’ retirement systems, as provided by law. All net revenue and interest earned on net revenue, other than interest used for the payment of prizes, by the state from the operation of a lottery; 60% of the proceeds of the sales tax imposed at a rate of 4% on retailers on taxable sales at retail of tangible personal property; the proceeds of the sales and use taxes imposed at a rate in excess of 4% provided for in section 8 of this article; and other tax revenues provided for by this section or by law, shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law.

In addition to other revenues dedicated under this section, beginning October 1, 1989, 25% of the proceeds of the sales tax imposed at a rate of 4% other than the sales tax described under section 9 of this article; the proceeds from the first 4% of the rate of the excise tax on spirits, as defined by law as of May 1, 1989; the proceeds of the first mill of the excise tax on cigarettes, as defined by law as of May 1, 1989; beginning January 1, 1990, 5% of the proceeds of the use tax imposed at a rate of 4%; and the portion of the proceeds of the industrial facilities tax, the commercial facilities tax, and the technology park facilities tax required by law to be paid to the state shall be dedicated to the state school aid fund.

Of the revenues dedicated to the state school aid fund, not more than 5% of the proceeds of the use tax imposed at a rate of 4% may be used for programs administered by the department of education for the benefit of local school districts as provided by law.

A refund pursuant to section 26 of this article, to the extent not greater than the proportionate share of relevant revenue, may be made using funds dedicated to the school aid fund.

Proposal A also amends art 4, § 41; art 9, §§ 8 & 10

There shall be established a state school aid fund which, except as provided in this section, shall be used exclusively for aid to school districts, higher education and school employees’ retirement systems, as provided by law. One-half of all taxes imposed All net revenue and interest earned on net revenue, other than interest used for the payment of prizes, by the state from the operation of a lottery; 60% of the proceeds of the sales tax imposed at a rate of 4% on retailers on taxable sales at retail of tangible personal property,; the proceeds of the sales and use taxes imposed at a rate in excess of 4% provided for in section 8 of this article; and other tax revenues provided for by this section or by law, shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law.

In addition to other revenues dedicated under this section, beginning October 1, 1989, 25% of the proceeds of the sales tax imposed at a rate of 4% other than the sales tax described under section 9 of this article; the proceeds from the first 4% of the rate of the excise tax on spirits, as defined by law as of May 1, 1989; the proceeds of the first mill of the excise tax on cigarettes, as defined by law as of May 1, 1989; beginning January 1, 1990, 5% of the proceeds of the use tax imposed at a rate of 4%; and the portion of the proceeds of the industrial facilities tax, the commercial facilities tax, and the technology park facilities tax required by law to be paid to the state shall be dedicated to the state school aid fund.

Of the revenues dedicated to the state school aid fund, not more than 5% of the proceeds of the use tax imposed at a rate of 4% may be used for programs administered by the department of education for the benefit of local school districts as provided by law.

A refund pursuant to section 26 of this article, to the extent not greater than the proportionate share of relevant revenue, may be made using funds dedicated to the school aid fund.

Proposal A also amends art 4, § 41; art 9, §§ 8 & 10

There shall be established a state school aid fund which shall be used exclusively for aid to school districts and school employees’ retirement systems, as provided by law. Sixty percent of all taxes imposed on retailers on taxable sales at retail of tangible personal property at a rate of 4% and other tax revenues provided by law shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law. On January 1, 1990, all revenues and obligations of the state school aid fund shall be transferred to the state account for education fund and the state school aid fund shall no longer exist.

On January 1, 1990, there is established a state account for education fund that shall be used exclusively for providing aid to local and intermediate school districts as provided in this section; meeting obligations incurred under this section; establishing a countercyclical economic and budget stabilization fund for local school districts as provided by law; assisting, in the manner provided by law, local and intermediate school districts in providing special services required by the United States government or a court of competent jurisdiction; providing assistance to local and intermediate school districts for transportation, special education, and vocational education services; providing reimbursements to tax increment financing authorities to the extent required by this section; and providing reimbursement to local school districts as required by this section.

Beginning January 1, 1990, 60% of all taxes imposed on retailers on taxable sales at retail of tangible personal property at a rate of 4%; the proceeds from the state property tax levied pursuant to section 3 of this article; the proceeds of the additional 2% rate of the sales and use taxes provided for in section 8 of this article; the proceeds from the first 4% of the rate of the excise tax on spirits, as defined by law as of November 7, 1989; the proceeds of the first mill of the excise tax on cigarettes, as defined by law as of November 7, 1989; the portion of the proceeds of the industrial facilities tax, the commercial facilities tax, and the technology park facilities tax required by law to be paid to the state; and 100% of the net revenue and interest earned on net revenue, other than interest used for the payment of prizes, by the state from the operation of a state lottery shall be deposited in the state account for education fund.

To meet obligations incurred under this section, the legislature may by law authorize the state to issue its full faith and credit notes pledging undedicated revenues and revenues dedicated to the state account for education fund to be received within the same fiscal year for the repayment of the notes. The indebtedness in any fiscal year shall not exceed 25% of the revenues dedicated to the state account for education fund received by the state during the preceding fiscal year, and the debts shall be repaid at the time the revenues pledged are received, but not later than the end of the same fiscal year.

The legislature shall provide by law that the reductions in revenues resulting from the decrease in school operating millage required by section 3 of this article shall not impair any tax increment financing contractual obligation, as defined by law, entered into or incurred before June 1, 1989; any tax increment financing obligation, as defined by law, issued after June 1, 1989 in anticipation of those revenues, if an agreement was entered into before June 1, 1989 by a municipality or authority providing for interim financing to be refunded by those tax increment financing obligations; or any tax increment financing contractual obligation incurred by or on behalf of a municipality or authority before September 1, 1989, if a tax increment plan providing for the issuance of those obligations in anticipation of those revenues was adopted before June 1, 1989. Nothing in this section shall preclude the capture and use by tax increment financing plans of the revenue derived from the property tax levied by the state pursuant to section 3 of this article.

The state shall reimburse each local district for the revenue not received because of the reduction in the number of local foundation mills that may be levied on business property, as required by section 3 of this article. The reimbursement to each local school district shall equal the product of the district’s 1990 state equalized valuation of business property multiplied by the number of local foundation mills levied only on nonbusiness property in the calendar year ending in the state fiscal year for which reimbursement occurs.

In addition to the funding provided to the state account for education fund under this section, for state fiscal years beginning after September 30, 1989, 25% of the proceeds of the sales tax imposed at a rate of 4% on tangible personal property that is not described in section 9 of this article and 54% of the proceeds of the use tax imposed at a rate of 4% shall be appropriated each year for K-12 education, as provided by law.

The legislature may provide by law for the revision or elimination of any of the requirements of the following paragraphs of this section. A law enacted pursuant to this paragraph or any amendment to a law enacted pursuant to this paragraph shall require the approval of 2⁄3 of the members elected to and serving in each house of the legislature.

Beginning with the 1990-91 state fiscal year, the legislature shall establish a specific local school district basic per pupil revenue guarantee for each local school district pursuant to this section. For a local school district in which the basic per pupil revenue for operating purposes for the 1989-90 state fiscal year was $3,190.00 or less, the local school district basic per pupil revenue guarantee shall provide a $350.00 increase in basic per pupil revenue for operating purposes for the 1990-91 state fiscal year. For a local school district in which the basic per pupil revenue for operating purposes for the 1989-90 state fiscal year was greater than $3,190.00, the increase in per pupil revenue for operating purposes for the 1990-91 state fiscal year shall not be less than $250.00 or more than $350.00. As used in this section, “basic per pupil revenues for operating purposes for the 1989-90 state fiscal year” means the greater of the local school district’s gross allowance established for the 1989-90 state fiscal year as certified by the department of education and as adjusted by the department of education to include amounts expended for operating purposes in the local school district’s 1989-90 fiscal year from any unexpended fund balance from a prior fiscal year or the product of the per pupil 1989 state equalized valuation of the district reduced by the amount of any captured assessed valuation and the millage used to compute the gross allowance.

For state fiscal years beginning after September 30, 1991, the local school district’s basic per pupil revenue guarantee is the sum of the combined state and local per pupil revenue from its local foundation millage plus the basic grant payable under this section. However, for a state fiscal year in which a local school district’s basic per pupil revenue guarantee in the previous fiscal year was less than the statewide basic per pupil revenue guarantee in that previous fiscal year, the increase in the local school district’s basic per pupil revenue guarantee for the state fiscal year shall not exceed $300.00.

The state account for education fund shall pay a basic grant to each local school district. For the 1990-91 state fiscal year, the basic grant shall be the lesser of $2,700.00 per pupil or the amount necessary to assure the local school district its local school district basic per pupil revenue guarantee if the local school district levies not less than its local foundation millage. However, the grant shall not be reduced below $2,700.00 per pupil for any local school district in which the reduction would result in a local foundation millage greater than 8 mills. Beginning in the 1991-92 state fiscal year, the basic grant shall be $2,700.00, as adjusted under this section, or the amount necessary to assure a local school district to which the $300.00 limitation applies its local school district basic per pupil revenue guarantee if the district levies not less than its local foundation millage.

Beginning in the 1990-91 state fiscal year, the state account for education fund shall supplement the revenue generated by a levy of the first 8 mills of local foundation millage in any local school district in which the state equalized valuation per pupil is less than $105,000.00, and shall supplement additional local foundation mills in a local school district in which the state equalized valuation per pupil is less than $85,000.00 per mill. The sum of the supplement and the actual yield shall equal the revenue that would have been produced if the state equalized valuation per pupil in the district had been $105,000.00 and $85,000.00, respectively.

The state account for education fund shall supplement the revenue generated by a levy of up to 4 additional mills approved by the qualified electors in any local school district in which the state equalized valuation per pupil is less than the state average state equalized valuation per pupil, determined without regard to district valuation, each year the extra voted mills are levied. The supplement and the actual yield shall equal the revenue that would have been produced if the state equalized valuation per pupil had been equal to the state average state equalized valuation per pupil.

Total state funding for special education for the 1990-91 state fiscal year; total state funding to assist local and intermediate school districts to provide transportation for students for the 1990-91 state fiscal year; total state funding for vocational education for the 1990-91 state fiscal year; and total state funding for intermediate school districts for the 1990-91 state fiscal year shall be, respectively, 10% higher than total state funding in the 1989-90 state fiscal year.

For state fiscal years beginning after September 30, 1991, the $2,700.00 basic grant described in this section; the $105,000.00 and $85,000.00 state equalized valuation amounts; and the total state appropriation for the general funding membership formula for intermediate school districts shall be adjusted, as provided by law, by the same percentage as the percentage increase or decrease in per pupil revenues of the state account for education fund. A law enacted to implement this paragraph shall provide for the uniform adjustment of percentage changes to reflect amounts deposited in or expended from the countercyclical economic budget stabilization fund provided for in this section; supplements authorized by this section for additional millages; payments of notes issued under this section; and any other payments required to be made or permitted under this section.

Beginning in 1995 and every 5 years thereafter, the state board of education shall make recommendations to the state legislature regarding the revision of methods used for providing improved school financing, equity in school financing, and quality programs, and shall prepare and submit to the legislature a 5-year plan for improving school financing, providing equity in school financing, and providing quality programs.

Proposal B also amends art 4, § 41; art 9, §§ 3, 5, 6, 8, 10, 14, & 36

There shall be established a state school aid fund which shall be used exclusively for aid to school districts, higher education and school employees’ retirement systems, as provided by law. One-half Sixty percent of all taxes imposed on retailers on taxable sales at retail of tangible personal property at a rate of 4%, and other tax revenues provided by law, shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law. On January 1, 1990, all revenues and obligations of the state school aid fund shall be transferred to the state account for education fund and the state school aid fund shall no longer exist.

On January 1, 1990, there is established a state account for education fund that shall be used exclusively for providing aid to local and intermediate school districts as provided in this section; meeting obligations incurred under this section; establishing a countercyclical economic and budget stabilization fund for local school districts as provided by law; assisting, in the manner provided by law, local and intermediate school districts in providing special services required by the United States government or a court of competent jurisdiction; providing assistance to local and intermediate school districts for transportation, special education, and vocational education services; providing reimbursements to tax increment financing authorities to the extent required by this section; and providing reimbursement to local school districts as required by this section.

Beginning January 1, 1990, 60% of all taxes imposed on retailers on taxable sales at retail of tangible personal property at a rate of 4%; the proceeds from the state property tax levied pursuant to section 3 of this article; the proceeds of the additional 2% rate of the sales and use taxes provided for in section 8 of this article; the proceeds from the first 4% of the rate of the excise tax on spirits, as defined by law as of November 7, 1989; the proceeds of the first mill of the excise tax on cigarettes, as defined by law as of November 7, 1989; the portion of the proceeds of the industrial facilities tax, the commercial facilities tax, and the technology park facilities tax required by law to be paid to the state; and 100% of the net revenue and interest earned on net revenue, other than interest used for the payment of prizes, by the state from the operation of a state lottery shall be deposited in the state account for education fund.

To meet obligations incurred under this section, the legislature may by law authorize the state to issue its full faith and credit notes pledging undedicated revenues and revenues dedicated to the state account for education fund to be received within the same fiscal year for the repayment of the notes. The indebtedness in any fiscal year shall not exceed 25% of the revenues dedicated to the state account for education fund received by the state during the preceding fiscal year, and the debts shall be repaid at the time the revenues pledged are received, but not later than the end of the same fiscal year.

The legislature shall provide by law that the reductions in revenues resulting from the decrease in school operating millage required by section 3 of this article shall not impair any tax increment financing contractual obligation, as defined by law, entered into or incurred before June 1, 1989; any tax increment financing obligation, as defined by law, issued after June 1, 1989 in anticipation of those revenues, if an agreement was entered into before June 1, 1989 by a municipality or authority providing for interim financing to be refunded by those tax increment financing obligations; or any tax increment financing contractual obligation incurred by or on behalf of a municipality or authority before September 1, 1989, if a tax increment plan providing for the issuance of those obligations in anticipation of those revenues was adopted before June 1, 1989. Nothing in this section shall preclude the capture and use by tax increment financing plans of the revenue derived from the property tax levied by the state pursuant to section 3 of this article.

The state shall reimburse each local district for the revenue not received because of the reduction in the number of local foundation mills that may be levied on business property, as required by section 3 of this article. The reimbursement to each local school district shall equal the product of the district’s 1990 state equalized valuation of business property multiplied by the number of local foundation mills levied only on nonbusiness property in the calendar year ending in the state fiscal year for which reimbursement occurs.

In addition to the funding provided to the state account for education fund under this section, for state fiscal years beginning after September 30, 1989, 25% of the proceeds of the sales tax imposed at a rate of 4% on tangible personal property that is not described in section 9 of this article and 54% of the proceeds of the use tax imposed at a rate of 4% shall be appropriated each year for K-12 education, as provided by law.

The legislature may provide by law for the revision or elimination of any of the requirements of the following paragraphs of this section. A law enacted pursuant to this paragraph or any amendment to a law enacted pursuant to this paragraph shall require the approval of 2⁄3 of the members elected to and serving in each house of the legislature.

Beginning with the 1990-91 state fiscal year, the legislature shall establish a specific local school district basic per pupil revenue guarantee for each local school district pursuant to this section. For a local school district in which the basic per pupil revenue for operating purposes for the 1989-90 state fiscal year was $3,190.00 or less, the local school district basic per pupil revenue guarantee shall provide a $350.00 increase in basic per pupil revenue for operating purposes for the 1990-91 state fiscal year. For a local school district in which the basic per pupil revenue for operating purposes for the 1989-90 state fiscal year was greater than $3,190.00, the increase in per pupil revenue for operating purposes for the 1990-91 state fiscal year shall not be less than $250.00 or more than $350.00. As used in this section, “basic per pupil revenues for operating purposes for the 1989-90 state fiscal year” means the greater of the local school district’s gross allowance established for the 1989-90 state fiscal year as certified by the department of education and as adjusted by the department of education to include amounts expended for operating purposes in the local school district’s 1989-90 fiscal year from any unexpended fund balance from a prior fiscal year or the product of the per pupil 1989 state equalized valuation of the district reduced by the amount of any captured assessed valuation and the millage used to compute the gross allowance.

For state fiscal years beginning after September 30, 1991, the local school district’s basic per pupil revenue guarantee is the sum of the combined state and local per pupil revenue from its local foundation millage plus the basic grant payable under this section. However, for a state fiscal year in which a local school district’s basic per pupil revenue guarantee in the previous fiscal year was less than the statewide basic per pupil revenue guarantee in that previous fiscal year, the increase in the local school district’s basic per pupil revenue guarantee for the state fiscal year shall not exceed $300.00.

The state account for education fund shall pay a basic grant to each local school district. For the 1990-91 state fiscal year, the basic grant shall be the lesser of $2,700.00 per pupil or the amount necessary to assure the local school district its local school district basic per pupil revenue guarantee if the local school district levies not less than its local foundation millage. However, the grant shall not be reduced below $2,700.00 per pupil for any local school district in which the reduction would result in a local foundation millage greater than 8 mills. Beginning in the 1991-92 state fiscal year, the basic grant shall be $2,700.00, as adjusted under this section, or the amount necessary to assure a local school district to which the $300.00 limitation applies its local school district basic per pupil revenue guarantee if the district levies not less than its local foundation millage.

Beginning in the 1990-91 state fiscal year, the state account for education fund shall supplement the revenue generated by a levy of the first 8 mills of local foundation millage in any local school district in which the state equalized valuation per pupil is less than $105,000.00, and shall supplement additional local foundation mills in a local school district in which the state equalized valuation per pupil is less than $85,000.00 per mill. The sum of the supplement and the actual yield shall equal the revenue that would have been produced if the state equalized valuation per pupil in the district had been $105,000.00 and $85,000.00, respectively.

The state account for education fund shall supplement the revenue generated by a levy of up to 4 additional mills approved by the qualified electors in any local school district in which the state equalized valuation per pupil is less than the state average state equalized valuation per pupil, determined without regard to district valuation, each year the extra voted mills are levied. The supplement and the actual yield shall equal the revenue that would have been produced if the state equalized valuation per pupil had been equal to the state average state equalized valuation per pupil.

Total state funding for special education for the 1990-91 state fiscal year; total state funding to assist local and intermediate school districts to provide transportation for students for the 1990-91 state fiscal year; total state funding for vocational education for the 1990-91 state fiscal year; and total state funding for intermediate school districts for the 1990-91 state fiscal year shall be, respectively, 10% higher than total state funding in the 1989-90 state fiscal year.

For state fiscal years beginning after September 30, 1991, the $2,700.00 basic grant described in this section; the $105,000.00 and $85,000.00 state equalized valuation amounts; and the total state appropriation for the general funding membership formula for intermediate school districts shall be adjusted, as provided by law, by the same percentage as the percentage increase or decrease in per pupil revenues of the state account for education fund. A law enacted to implement this paragraph shall provide for the uniform adjustment of percentage changes to reflect amounts deposited in or expended from the countercyclical economic budget stabilization fund provided for in this section; supplements authorized by this section for additional millages; payments of notes issued under this section; and any other payments required to be made or permitted under this section.

Beginning in 1995 and every 5 years thereafter, the state board of education shall make recommendations to the state legislature regarding the revision of methods used for providing improved school financing, equity in school financing, and quality programs, and shall prepare and submit to the legislature a 5-year plan for improving school financing, providing equity in school financing, and providing quality programs.

Proposal B also amends art 4, § 41; art 9, §§ 3, 5, 6, 8, 10, 14, & 36