Michigan Compiled Laws
Article I - State Aid to Public Schools, Early Childhood, and Adult Education (388.1601...388.1772)
Section 388.1631o - Payments to Eligible Districts and Intermediate Districts for School Psychologists, School Social Workers, School Counselors, and School Nurses; Application; Payment Schedule and Calculations.

Sec. 31o.
(1) From the state school aid fund money appropriated in section 11, there is allocated for 2021-2022 an amount not to exceed $240,000,000.00 for payments to eligible districts and intermediate districts for the purpose of increasing the number of school psychologists, school social workers, school counselors, and school nurses serving students in this state.
(2) Except as otherwise provided in this subsection, to receive funding under this section, a district or intermediate district must apply for the funding in a form and manner prescribed by the department. In its application for funding under this section, a district or intermediate district must pledge and provide assurances to the department that it will fully annually fund all staff that are supported with funding under this section in an ongoing manner after the district or intermediate district receives its final payment under this section.
(3) The department shall award funding to districts and intermediate districts with the greatest need for additional school psychologists, school social workers, school counselors, or school nurses. To determine the districts and intermediate districts with the greatest needs under this subsection, the department shall consider the physical and mental health services available at the district or intermediate district and how close an applicant district or intermediate district is to meeting the following recommended staff-to-student ratios:
(a) 1 school psychologist for every 500 full-time equated pupils counted in the district or directly served by the intermediate district.
(b) 1 school social worker for every 250 full-time equated pupils counted in the district or directly served by the intermediate district.
(c) 1 school counselor for every 250 full-time equated pupils counted in the district or directly served by the intermediate district.
(d) 1 school nurse for every 750 full-time equated pupils counted in the district or directly served by the intermediate district.
(4) To be eligible for funding under this section, a district or intermediate district must hire additional school psychologists, school social workers, school counselors, or school nurses by March 1, 2024 and must maintain support for the new staff in an ongoing manner. As determined by the department, staff hired and supported by funding under this section must meet all applicable state and federal laws, rules, and license requirements to be considered a school psychologist, school social worker, school counselor, or school nurse.
(5) Subject to subsections (6) and (7), payments to eligible districts and intermediate districts must be made as follows:
(a) For staff hired before March 1, 2022, the department shall provide payments to eligible districts and intermediate districts equal to 100% of the annualized cost of newly hired school psychologists, school social workers, school counselors, or school nurses. The amount paid to the eligible district and intermediate district must be the lesser of the actual annualized cost of the employee, as determined by the department, or the median wage for an equivalent employee working in a school setting, as determined by the department, using wage data from the United States Bureau of Labor Statistics that is specific to this state.
(b) For retained staff hired with funds under subdivision (a) or hired between March 1, 2022 and March 1, 2023, the department shall pay eligible districts and intermediate districts 66% of the annualized cost of newly hired school psychologists, school social workers, school counselors, or school nurses. The amount paid to the eligible district or intermediate district must be the lesser of 66% of the actual annualized cost of the employee, as determined by the department, or 66% of the median wage for an equivalent employee working in a school setting, as determined by the department, using wage data from the United States Bureau of Labor Statistics that are specific to this state.
(c) For retained staff hired or retained with funds under subdivision (a) or (b) or hired between March 1, 2023 and March 1, 2024, the department shall pay eligible districts or intermediate districts 33% of the annualized cost of newly hired school psychologists, school social workers, school counselors, or school nurses. The amount paid to the eligible district or intermediate district must be the lesser of 33% of the actual annualized cost of the employee, as determined by the department, or 33% of the median wage for an equivalent employee working in a school setting, as determined by the department, using wage data from the United States Bureau of Labor Statistics that are specific to this state.
(6) If a district or intermediate district does not retain staff hired with funds under subsection (5)(a), the district is not eligible to receive funding for that staff member under subsection (5)(b) or (c).
(7) If, after awarding funding under subsection (3) and calculating payment amounts under subsection (5), the department determines that the amount allocated in subsection (1) is insufficient to fully fund payments under this section, the department shall prorate payments to eligible districts and intermediate districts on an equal percentage basis.
(8) The funds allocated under this section for 2021-2022 are a work project appropriation, and any unexpended funds for 2021-2022 are carried forward into 2022-2023. The purpose of the work project is to increase the number of school psychologists, school social workers, school counselors, and school nurses in school buildings. The estimated completion date of the work project is September 30, 2024.
(9) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
History: Add. 2021, Act 48, Eff. Oct. 1, 2021 ;-- Am. 2022, Act 144, Imd. Eff. July 14, 2022