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HB-5630, As Passed Senate, July 1, 2026
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SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5630
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 201, and 236 (MCL 388.1611, 388.1801, and
388.1836), as amended by 2025 PA 15.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2025, 1
there is appropriated for the public schools of this state and 2
certain other state purposes relating to education the sum of 3
$17,936,546,300.00 from the state school aid fund, the sum of 4
$78,830,600.00 from the general fund, an amount not to exceed 5
$41,000,000.00 from the community district education trust fund 6
created under section 12 of the Michigan trust fund act, 2000 PA 7
489, MCL 12.262, an amount not to exceed $125,000,000.00 from the 8
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school transportation fund created under section 22k, an amount not 1
to exceed $71,000,000.00 from the enrollment stabilization fund 2
created under section 29, an amount not to exceed $30,000,000.00 3
from the school meals reserve fund created under section 30e, an 4
amount not to exceed $18,000,000.00 from the great start readiness 5
program reserve fund created under section 32e, an amount not to 6
exceed $481,400,000.00 from the MPSERS retirement obligation reform 7
reserve fund created under section 147b, and an amount not to 8
exceed $30,000,000.00 from the educator fellowship public provider 9
fund created in section 27d. For the fiscal year ending September 10
30, 2026, there is appropriated for the public schools of this 11
state and certain other state purposes relating to education the 12
sum of $18,366,334,700.00 $100.00 from the state school aid fund, 13
the sum of $73,151,100.00 $100.00 from the general fund, an amount 14
not to exceed $100,000,000.00 $100.00 from the school consolidation 15
and infrastructure fund created under section 11x, an amount not to 16
exceed $125,000,000.00 $100.00 from the school transportation fund 17
created under section 22k, an amount not to exceed $71,000,000.00 18
$100.00 from the enrollment stabilization fund created under 19
section 29, an amount not to exceed $18,000,000.00 $100.00 from the 20
great start readiness program reserve fund created under section 21
32e, an amount not to exceed $30,000,000.00 $100.00 from the 22
educator fellowship public provider fund created under section 27d, 23
an amount not to exceed $97,037,400.00 $100.00 from the state 24
school aid pupil support reserve fund created under section 22r, 25
and an amount not to exceed $600,000.00 $100.00 from the general 26
pupil support reserve fund created under section 22s. For the 27
fiscal year ending September 30, 2027, there is appropriated for 28
the public schools of this state and certain other state purposes 29
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relating to education the sum of $100.00 from the state school aid 1
fund, the sum of $100.00 from the general fund, an amount not to 2
exceed $100.00 from the school consolidation and infrastructure 3
fund created under section 11x, an amount not to exceed $100.00 4
from the school transportation fund created under section 22k, an 5
amount not to exceed $100.00 from the enrollment stabilization fund 6
created under section 29, an amount not to exceed $100.00 from the 7
great start readiness program reserve fund created under section 8
32e, an amount not to exceed $100.00 from the educator fellowship 9
public provider fund created under section 27d, an amount not to 10
exceed $100.00 from the state school aid pupil support reserve fund 11
created under section 22r, and an amount not to exceed $100.00 from 12
the general pupil support reserve fund created under section 22s. 13
In addition, all available federal funds are only appropriated as 14
allocated in this article for the fiscal years ending September 30, 15
2025 and September 30, 2026 and September 30, 2027. 16
(2) The appropriations under this section are allocated as 17
provided in this article. Money appropriated under this section 18
from the general fund must be expended to fund the purposes of this 19
article before the expenditure of money appropriated under this 20
section from the state school aid fund. 21
(3) Any general fund allocations under this article that are 22
not expended by the end of the fiscal year are transferred to the 23
school aid stabilization fund created under section 11a. 24
Sec. 201. (1) Subject to the conditions set forth in this 25
article, the amounts listed in this section are appropriated for 26
community colleges for the fiscal year ending September 30, 2026, 27
2027, from the funds indicated in this section. The following is a 28
summary of the appropriations in this section: and section 201f: 29
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(a) The gross appropriation is $493,032,100.00. $100.00 After 1
deducting total interdepartmental grants and intradepartmental 2
transfers in the amount of $0.00, the adjusted gross appropriation 3
is $493,032,100.00.$100.00. 4
(b) The sources of the adjusted gross appropriation described 5
in subdivision (a) are as follows: 6
(i) Total federal revenues, $0.00. 7
(ii) Total local revenues, $0.00. 8
(iii) Total private revenues, $0.00. 9
(iv) Total other state restricted revenues, $493,032,100.00. 10
$100.00. 11
(v) State general fund/general purpose money, $0.00. 12
(2) Subject to subsection (3), the amount appropriated for 13
community college operations is $363,570,600.00, allocated as 14
follows:$100.00. 15
(a) The appropriation for Alpena Community College is 16
$6,416,800.00, $6,403,300.00 for operations, $0.00 for performance 17
funding, and $13,500.00 for costs incurred under the North American 18
Indian tuition waiver. 19
(b) The appropriation for Bay de Noc Community College is 20
$6,390,000.00, $6,298,000.00 for operations, $0.00 for performance 21
funding, and $92,000.00 for costs incurred under the North American 22
Indian tuition waiver. 23
(c) The appropriation for Delta College is $16,934,200.00, 24
$16,882,400.00 for operations, $0.00 for performance funding, and 25
$51,800.00 for costs incurred under the North American Indian 26
tuition waiver. 27
(d) The appropriation for Glen Oaks Community College is 28
$2,987,000.00, $2,984,100.00 for operations, $0.00 for performance 29
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funding, and $2,900.00 for costs incurred under the North American 1
Indian tuition waiver. 2
(e) The appropriation for Gogebic Community College is 3
$5,439,100.00, $5,399,000.00 for operations, $0.00 for performance 4
funding, and $40,100.00 for costs incurred under the North American 5
Indian tuition waiver. 6
(f) The appropriation for Grand Rapids Community College is 7
$21,337,300.00, $21,184,200.00 for operations, $0.00 for 8
performance funding, and $153,100.00 for costs incurred under the 9
North American Indian tuition waiver. 10
(g) The appropriation for Henry Ford College is 11
$25,305,200.00, $25,300,700.00 for operations, $0.00 for 12
performance funding, and $4,500.00 for costs incurred under the 13
North American Indian tuition waiver. 14
(h) The appropriation for Jackson College is $14,059,700.00, 15
$14,032,600.00 for operations, $0.00 for performance funding, and 16
$27,100.00 for costs incurred under the North American Indian 17
tuition waiver. 18
(i) The appropriation for Kalamazoo Valley Community College 19
is $14,751,300.00, $14,704,400.00 for operations, $0.00 for 20
performance funding, and $46,900.00 for costs incurred under the 21
North American Indian tuition waiver. 22
(j) The appropriation for Kellogg Community College is 23
$11,453,400.00, $11,426,700.00 for operations, $0.00 for 24
performance funding, and $26,700.00 for costs incurred under the 25
North American Indian tuition waiver. 26
(k) The appropriation for Kirtland Community College is 27
$3,881,400.00, $3,835,100.00 for operations, $0.00 for performance 28
funding, and $46,300.00 for costs incurred under the North American 29
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Indian tuition waiver. 1
(l) The appropriation for Lake Michigan College is 2
$6,427,600.00, $6,408,200.00 for operations, $0.00 for performance 3
funding, and $19,400.00 for costs incurred under the North American 4
Indian tuition waiver. 5
(m) The appropriation for Lansing Community College is 6
$36,216,500.00, $36,134,400.00 for operations, $0.00 for 7
performance funding, and $82,100.00 for costs incurred under the 8
North American Indian tuition waiver. 9
(n) The appropriation for Macomb Community College is 10
$38,251,500.00, $38,160,600.00 for operations, $0.00 for 11
performance funding, and $90,900.00 for costs incurred under the 12
North American Indian tuition waiver. 13
(o) The appropriation for Mid Michigan Community College is 14
$5,919,500.00, $5,837,000.00 for operations, $0.00 for performance 15
funding, and $82,500.00 for costs incurred under the North American 16
Indian tuition waiver. 17
(p) The appropriation for Monroe County Community College is 18
$5,368,900.00, $5,368,500.00 for operations, $0.00 for performance 19
funding, and $400.00 for costs incurred under the North American 20
Indian tuition waiver. 21
(q) The appropriation for Montcalm Community College is 22
$4,035,000.00, $4,033,300.00 for operations, $0.00 for performance 23
funding, and $1,700.00 for costs incurred under the North American 24
Indian tuition waiver. 25
(r) The appropriation for C.S. Mott Community College is 26
$18,028,100.00, $18,017,800.00 for operations, $0.00 for 27
performance funding, and $10,300.00 for costs incurred under the 28
North American Indian tuition waiver. 29
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(s) The appropriation for Muskegon Community College is 1
$10,403,400.00, $10,359,900.00 for operations, $0.00 for 2
performance funding, and $43,500.00 for costs incurred under the 3
North American Indian tuition waiver. 4
(t) The appropriation for North Central Michigan College is 5
$4,110,100.00, $3,947,700.00 for operations, $0.00 for performance 6
funding, and $162,400.00 for costs incurred under the North 7
American Indian tuition waiver. 8
(u) The appropriation for Northwestern Michigan College is 9
$10,874,500.00, $10,619,800.00 for operations, $0.00 for 10
performance funding, and $254,700.00 for costs incurred under the 11
North American Indian tuition waiver. 12
(v) The appropriation for Oakland Community College is 13
$25,168,400.00, $25,130,000.00 for operations, $0.00 for 14
performance funding, and $38,400.00 for costs incurred under the 15
North American Indian tuition waiver. 16
(w) The appropriation for Schoolcraft College is 17
$14,997,300.00, $14,972,000.00 for operations, $0.00 for 18
performance funding, and $25,300.00 for costs incurred under the 19
North American Indian tuition waiver. 20
(x) The appropriation for Southwestern Michigan College is 21
$7,805,700.00, $7,786,600.00 for operations, $0.00 for performance 22
funding, and $19,100.00 for costs incurred under the North American 23
Indian tuition waiver. 24
(y) The appropriation for St. Clair County Community College 25
is $8,355,300.00, $8,342,000.00 for operations, $0.00 for 26
performance funding, and $13,300.00 for costs incurred under the 27
North American Indian tuition waiver. 28
(z) The appropriation for Washtenaw Community College is 29
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$16,276,300.00, $16,257,300.00 for operations, $0.00 for 1
performance funding, and $19,000.00 for costs incurred under the 2
North American Indian tuition waiver. 3
(aa) The appropriation for Wayne County Community College is 4
$19,462,800.00, $19,460,300.00 for operations, $0.00 for 5
performance funding, and $2,500.00 for costs incurred under the 6
North American Indian tuition waiver. 7
(bb) The appropriation for West Shore Community College is 8
$2,914,300.00, $2,896,700.00 for operations, $0.00 for performance 9
funding, and $17,600.00 for costs incurred under the North American 10
Indian tuition waiver. 11
(3) The amount appropriated in subsection (2) for community 12
college operations is $363,570,600.00 $100.00 and is appropriated 13
from the state school aid fund. 14
(4) From the appropriations described in subsection (1), both 15
of the following apply: 16
(a) Subject to section 207a, the amount appropriated for 17
fiscal year 2025-2026 to offset certain fiscal year 2025-2026 18
retirement contributions is $7,189,000.00, appropriated from the 19
state school aid fund. 20
(b) For fiscal year 2025-2026, there is allocated an amount 21
not to exceed $19,600,000.00 for payments to participating 22
community colleges, appropriated from the state school aid fund. A 23
community college that receives money under this subdivision shall 24
use that money solely for the purpose of offsetting the normal cost 25
contribution rate. 26
(5) From the appropriations described in subsection (1), 27
subject to section 207b, the amount appropriated for payments to 28
community colleges that are participating entities of the 29
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retirement system is $89,500,000.00, appropriated from the state 1
school aid fund. 2
(6) From the appropriations described in subsection (1), 3
subject to section 207c, the amount appropriated for renaissance 4
zone tax reimbursements is $2,200,000.00, appropriated from the 5
state school aid fund. Each community college receiving funds in 6
this subsection shall accrue these payments to its institutional 7
fiscal year ending June 30, 2026. 8
Sec. 236. (1) Subject to the conditions set forth in this 9
article, the amounts listed in this section are appropriated for 10
higher education for the fiscal year ending September 30, 2026, 11
2027, from the funds indicated in this section. The following is a 12
summary of the appropriations in this section: and sections 236d, 13
236e, and 236j: 14
(a) The gross appropriation is $2,336,912,000.00. $100.00. 15
After deducting total interdepartmental grants and 16
intradepartmental transfers in the amount of $0.00, the adjusted 17
gross appropriation is $2,336,912,000.00.$100.00. 18
(b) The sources of the adjusted gross appropriation described 19
in subdivision (a) are as follows: 20
(i) Total federal revenues, $3,200,000.00.$0.00 21
(ii) Total local revenues, $0.00. 22
(iii) Total private revenues, $0.00. 23
(iv) Total other state restricted revenues, 24
$850,768,300.00.$50.00. 25
(v) State general fund/general purpose money, 26
$1,482,943,700.00.$50.00. 27
(c) The totals and subtotals reflected in subdivisions (a) and 28
(b) do not include amounts appropriated under subsection (7)(d) or 29
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(8)(b) to avoid duplicating totals of amounts appropriated in this 1
section and section 236j. 2
(2) Amounts appropriated for public universities are as 3
follows: 4
(a) The appropriation for Central Michigan University is 5
$99,466,100.00, $95,226,900.00 for operations, $0.00 for operations 6
increase, $2,558,800.00 for MPSERS support payment, and 7
$1,680,400.00 for costs incurred under the North American Indian 8
tuition waiver. 9
(b) The appropriation for Eastern Michigan University is 10
$86,649,200.00, $83,979,800.00 for operations, $0.00 for operations 11
increase, $2,256,500.00 for MPSERS support payment, and $412,900.00 12
for costs incurred under the North American Indian tuition waiver. 13
(c) The appropriation for Ferris State University is 14
$62,221,900.00, $59,816,300.00 for operations, $0.00 for operations 15
increase, $1,607,300.00 for MPSERS support payment, and $798,300.00 16
for costs incurred under the North American Indian tuition waiver. 17
(d) The appropriation for Grand Valley State University is 18
$98,772,000.00, $97,552,900.00 for operations, $0.00 for operations 19
increase, $0.00 for MPSERS support payment, and $1,219,100.00 for 20
costs incurred under the North American Indian tuition waiver. 21
(e) The appropriation for Lake Superior State University is 22
$16,301,400.00, $14,465,600.00 for operations, $0.00 for operations 23
increase, $388,700.00 for MPSERS support payment, and $1,447,100.00 24
for costs incurred under the North American Indian tuition waiver. 25
(f) The appropriation for Michigan State University is 26
$396,845,300.00, $321,516,900.00 for operations, $0.00 for 27
operations increase, $0.00 for MPSERS support payment, 28
$2,508,800.00 for costs incurred under the North American Indian 29
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tuition waiver, $39,096,200.00 for MSU AgBioResearch, and 1
$33,723,400.00 for MSU Extension. 2
(g) The appropriation for Michigan Technological University is 3
$56,659,000.00, $54,463,700.00 for operations, $0.00 for operations 4
increase, $1,463,400.00 for MPSERS support payment, and $731,900.00 5
for costs incurred under the North American Indian tuition waiver. 6
(h) The appropriation for Northern Michigan University is 7
$55,688,200.00, $52,850,300.00 for operations, $0.00 for operations 8
increase, $1,420,100.00 for MPSERS support payment, and 9
$1,417,800.00 for costs incurred under the North American Indian 10
tuition waiver. 11
(i) The appropriation for Oakland University is 12
$73,361,600.00, $73,036,400.00 for operations, $0.00 for operations 13
increase, $0.00 for MPSERS support payment, and $325,200.00 for 14
costs incurred under the North American Indian tuition waiver. 15
(j) The appropriation for Saginaw Valley State University is 16
$34,379,000.00, $34,196,000.00 for operations, $0.00 for operations 17
increase, $0.00 for MPSERS support payment, and $183,000.00 for 18
costs incurred under the North American Indian tuition waiver. 19
(k) The appropriation for University of Michigan – Ann Arbor 20
is $362,507,900.00, $360,607,300.00 for operations, $0.00 for 21
operations increase, $0.00 for MPSERS support payment, and 22
$1,900,600.00 for costs incurred under the North American Indian 23
tuition waiver. 24
(l) The appropriation for University of Michigan – Dearborn is 25
$31,708,000.00, $31,513,700.00 for operations, $0.00 for operations 26
increase, $0.00 for MPSERS support payment, and $194,300.00 for 27
costs incurred under the North American Indian tuition waiver. 28
(m) The appropriation for University of Michigan – Flint is 29
12
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$26,884,600.00, $26,403,700.00 for operations, $0.00 for operations 1
increase, $0.00 for MPSERS support payment, and $480,900.00 for 2
costs incurred under the North American Indian tuition waiver. 3
(n) The appropriation for Wayne State University is 4
$227,787,300.00, $227,310,200.00 for operations, $0.00 for 5
operations increase, $0.00 for MPSERS support payment, and 6
$477,100.00 for costs incurred under the North American Indian 7
tuition waiver. 8
(o) The appropriation for Western Michigan University is 9
$125,246,700.00, $121,231,800.00 for operations, $0.00 for 10
operations increase, $3,257,500.00 for MPSERS support payment, and 11
$757,400.00 for costs incurred under the North American Indian 12
tuition waiver. 13
(3) The amount appropriated in subsection (2) for public 14
universities is $1,754,478,200.00, appropriated from the following: 15
(a) State school aid fund, $643,168,300.00. 16
(b) State general fund/general purpose money, 17
$1,111,309,900.00. 18
(4) The amount appropriated for Michigan public school 19
employees' retirement system reimbursement is $0.00. 20
(5) The amount appropriated for state and regional programs is 21
$322,100.00, appropriated from general fund/general purpose money 22
and allocated as follows: 23
(a) Higher education database modernization and conversion, 24
$200,000.00. 25
(b) Midwestern Higher Education Compact, $122,100.00. 26
(6) The amount appropriated for the Martin Luther King, Jr. - 27
Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated 28
from general fund/general purpose money and allocated as follows: 29
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(a) Select student support services, $1,956,100.00. 1
(b) Michigan college/university partnership program, 2
$586,800.00. 3
(c) Morris Hood, Jr. educator development program, 4
$148,600.00. 5
(7) Subject to subsection (8), the amount appropriated for 6
grants and financial aid is $469,500,000.00, allocated as follows: 7
(a) Tuition incentive program, $122,300,000.00. 8
(b) Children of veterans and officer's survivor tuition grant 9
programs, $2,000,000.00. 10
(c) Project GEAR-UP, $3,200,000.00. 11
(d) Michigan achievement scholarships, $300,000,000.00. From 12
this amount, up to $10,000,000.00 may be used to award skills 13
scholarships under section 248a. 14
(e) Michigan reconnect, $42,000,000.00. 15
(8) The money appropriated in subsection (7) for grants and 16
financial aid is appropriated from the following: 17
(a) Federal revenues under the United States Department of 18
Education, Office of Elementary and Secondary Education, GEAR-UP 19
program, $3,200,000.00. 20
(b) Postsecondary scholarship fund, $300,000,000.00. 21
(c) State general fund/general purpose money, $166,300,000.00. 22
(d) At the close of the fiscal year, state general 23
fund/general purpose money appropriated in subsection (7) for 24
grants and scholarships that is unspent must be deposited into the 25
postsecondary scholarship fund created in section 236j. 26
(9) For fiscal year 2025-2026 only, in addition to the 27
allocation under subsection (4), from the appropriations described 28
in subsection (1), there is allocated an amount not to exceed 29
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Final Page
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$7,600,000.00 for payments to participating public universities, 1
appropriated from the state school aid fund. A public university 2
that receives money under this subsection shall use that money 3
solely for the purpose of offsetting the normal cost contribution 4
rate. As used in this subsection, "participating public 5
universities" means public universities that are a reporting unit 6
of the Michigan public school employees' retirement system under 7
the public school employees retirement act of 1979, 1980 PA 300, 8
MCL 38.1301 to 38.1437, and that pay contributions to the Michigan 9
public school employees' retirement system for the state fiscal 10
year. 11