STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6145

April 1, 1983

SCHOOLS AND SCHOOL DISTRICTS:

Statutory obligation of a school district to provide 180 days of student instruction and to operate under a balanced budget

1976 PA 451, Sec. 1284, which requires that a school district must provide 180 days of student instruction and 1979 PA 94, Sec. 102, which requires a school district to operate under a balanced budget are both binding upon school districts.

Any conflict in meeting the requirements of 1976 PA 451, Sec. 1284 and 1979 PA 94, Sec. 102, may be reconciled by invoking the procedures outlined by the Legislature in 1979 PA 94, Sec. 102(12).

Honorable William Faust

State Senator

The Capitol

Lansing, Michigan

In your opinion request you note that school districts are required by law to provide 180 days of student instruction and to have a balanced budge. You inquire as to which statutory requirement would take precedence where a school district faces a lack of operating revenues to provide 180 days of student instruction without incurring a deficit in the 1982-1983 school fiscal year.

Relative to your inquiry, it is to be observed that the Legislature has required school districts to provide 180 days of student instruction. The School Code of 1976, 1976 PA 451, Sec. 1284; MCLA 380.1284; MSA 15.41284; The State School Aid of 1979, 1979 PA 94; MCLA 388.1601 et seq; MSA 15.1919(901) et seq, Sec. 101(2).

Furthermore, in 1979 PA 94, supra, Sec. 102, as last amended by 1982 PA 279, the Legislature has, with respect to balanced budgets, in pertinent part provided:

Thus, pursuant to 1979 PA 94, Sec. 102(3) supra, a deficit may be incurred by a school district to the extent that it results from an executive order reduction of appropriated state school aid to the school district. Executive order reductions of stat expenditures are authorized by Const 1963, art 5, 20.

Your opinion request is based upon the premise that a school district receiving state aid which did not incur a deficit in the prior school fiscal year, may be unable to provide 180 days of student instruction in the 1982-1983 school fiscal year without incurring a deficit. In that event, the school district must notify the Department of Education of its situation. At that point, pursuant to 1979 PA 94, Sec. 102(12), supra, the Department of Education shall notify the chairpersons of the Senate and House appropriations committees of the pertinent fiscal circumstances of the school district's noncompliance.

The chairpersons may jointly determine that the fiscal circumstances justify an extension of the deficit retirement provisions and, if such a determination is made, the Department may not withhold state aid during the 1982-1983 school fiscal year even though the school district in question will end such year with a deficit. Thereafter, pursuant to 1979 PA 94, Sec. 102(1), supra, the school district must submit to the Department of Education for approval a budget for the 1983-1984 school fiscal year and a plan to eliminate the school district's deficit not later than the end of the 1984-1985 school fiscal year.

Alternatively, the chairpersons may determine that the school district's financial circumstances do not justify an extension of the deficit retirement provisions. In that event, it is the obligation of the school district to provide 180 days of student instruction, without incurring the deficit, by further eliminating expenditures.

It is my opinion, therefore, that 1976 PA 451, Sec. 1284, supra, which requires that a school district must provide 180 days of student instruction, and 1979 PA 94, Sec. 102, supra, which requires a school to operate under a balanced budget, are both binding upon school districts. It is my further opinion that any conflict in meeting the requirements of these provisions may be reconciled by invoking the procedures contained in 1979 PA 94, Sec. 102(12), supra.

Frank J. Kelley