STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6441

June 4, 1987

SCHOOLS AND SCHOOL DISTRICTS:

Intermediate districts--use of special education funds to pay costs of election to increase tax limitation for special education purposes

An intermediate school district may not use its special education funds to pay the expenses of conducting a special election to increase the tax limitation for special education purposes.

The Legislature has not required local school districts to bear a pro rata share of the cost of an intermediate school district special election.

Honorable James E. O'Neill

State Representative

The Capitol

Lansing, Michigan

You have requested my opinion on the following questions:

MCL 380.1723; MSA 15.41723, authorizes an intermediate school board, at an annual school election or a special election, to submit a question to the electors whether a millage to fund special education programs should be approved. MCL 380.1724; MSA 15.41724, authorizes an intermediate board, at an annual school election or a special election, to submit the question of increasing a previously approved special education millage.

Intermediate school districts may receive special education funds from three sources: (1) state school aid, pursuant to the State School Aid Act of 1979, Secs. 51-57; MCL 388.1651-388.1657; MSA 15.1919(951)-15.1919(957), (2) intermediate school district taxes levied in accordance with MCL 380.1727; MSA 15.41727, and (3) local school district contributions for programs and services provided by the intermediate school district as authorized by MCL 380.1751; MSA 15.41751. The purposes for which any of these funds may be expended are specifically limited by statute and administrative rules.

The purposes for which state school aid funds may be expended are enumerated in MCL 388.1618 and 388.1656; MSA 15.1919(918) and 15.1919(956). These purposes do not include the expenses of a special election.

MCL 380.1729; MSA 15.41729, provides that funds received from intermediate district millage shall be expended for special education purposes in accordance with administrative rules promulgated by the State Board of Education.

Similarly, MCL 380.1751(2)(c); MSA 15.41751(2)(c), provides that contributions by local districts for special education programs and services shall be in accordance with administrative rules promulgated by the State Board of Education. The State Board of Education has promulgated administrative rules regarding the use of these funds. 1980 AACS, R 340.1801-R 340.1812. The permitted uses do not include the payment of expenses of special elections to increase tax limitations for special education purposes

Intermediate school districts also have general fund operating budgets. MCL 380.624; MSA 15.4624. Intermediate districts share in the 15 mill allocation permitted by Const 1963, art 9, Sec. 6, and are assured minimum amounts of revenue under the tax allocation process established by MCL 211.201 et seq; MSA 7.61 et seq, or under the separate tax limitation procedures set forth in MCL 211.205a-211.205m; MSA 7.65(1)-7.65(13). Pursuant to MCL 380.624; MSA 15.4624, intermediate school boards have the authority to levy this allocated millage. The general operating expenses of the intermediate districts, including election expenses, are funded from these revenues.

It is my opinion, in answer to your first question, that the Legislature has not authorized the use of special education funds of an intermediate school district for the payment of the expenses of conducting a special election to increase the special education millage.

Turning to your second question, MCL 380.662(6); MSA 15.4662(6), provides:

Since the Legislature has not required local school districts to bear a pro rata share of the costs of an intermediate school district special election, an answer to your second question is unnecessary.

Frank J. Kelley

Attorney General