Appropriations: school aid; fiscal year 2025-2026 appropriations for K-12 school aid; provide for. Amends, adds & repeals (See bill).

(5)
Act No. 15
Public Acts of 2025
Approved by the Governor
October 7, 2025
Filed with the Secretary of State
October 7, 2025
EFFECTIVE DATE: October 7, 2025

STATE OF MICHIGAN
103RD LEGISLATURE
REGULAR SESSION OF 2025
Introduced by Senator Camilleri
ENROLLED SENATE BILL No. 166
AN ACT to amend 1979 PA 94, entitled “An act to make appropriations to aid in the support of the public
schools, the intermediate school districts, community colleges, and public universities of the state; to make
appropriations for certain other purposes relating to education; to provide for the disbursement of the
appropriations; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe
the powers and duties of certain state departments, the state board of education, and certain other boards and
officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and
parts of acts,” by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 12d, 15, 18, 19, 20, 20d, 21f, 21h, 22a,
22b, 22d, 22k, 22 l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27h, 27 l, 27p, 27r, 28, 29, 30d,
31a, 31d, 31f, 31n, 31aa, 32d, 32n, 32t, 33, 35a, 35m, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 55, 56,
61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 97g, 97k, 98, 99, 99h, 99ee, 101, 104, 104b, 104h, 107, 111,
147, 147a, 147c, 147e, 152a, 152b, 161a, 201, 201f, 206, 207a, 207b, 207c, 210, 210b, 210d, 212, 216e, 217a, 217b,
217c, 222, 229a, 230, 236, 236c, 236d, 236j, 241, 241a, 241b, 241c, 241e, 244, 247, 248, 251, 252, 254, 256, 260,
263, 263b, 264, 268, 269, 270, 270c, 275k, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285, and 286 (MCL 388.1603,
388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1611x, 388.1612d, 388.1615,
388.1618, 388.1619, 388.1620, 388.1620d, 388.1621f , 388.1621h, 388.1622a, 388.1622b, 388.1622d, 388.1622k,
388.1622l, 388.1622m, 388.1622p, 388.1624, 388.1624a, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c,
388.1626d, 388.1627a, 388.1627b, 388.1627c, 388.1627h, 388.1627 l, 388.1627p, 388.1627r, 388.1628, 388.1629,
388.1630d, 388.1631a, 388.1631d, 388.1631f, 388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632t, 388.1633,
388.1635a, 388.1635m, 388.1639, 388.1639a, 388.1641, 388.1641b, 388.1651a, 388.1651c, 388.1651d, 388.1 651e,
388.1651g, 388.1653a , 388.1654, 388.1654d, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1661d, 388.1661j,
388.1662, 388.1665, 388.1667, 388.1667f, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1694e, 388.1697g,
388.1697k, 388.1698, 388.1699, 388.1699h, 388.1699ee, 388.1701, 3 88.1704, 388.1704b, 388.1704h, 388.1707,
388.1711, 388.1747, 388.1747a, 388.1747c, 388.1747e, 388.1752a, 388.1752b, 388.1761a, 388.1801, 388.1801f,
388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1810, 388.1810b, 388.1810d, 388.1812, 388.1816e, 388.1817a,
388.1817b, 388.1817c, 388.1822, 388.1829a, 388.1830, 388.1836, 388.1836c, 388.1836d, 388.1836j, 388.1841,
388.1841a, 388.1841b, 388.1841c, 388.1841e, 388.1844, 388.1847, 388.1848, 388.1851, 388.1852, 388.1854,
388.1856, 388.1860, 388.1863, 388.1863b, 388.18 64, 388.1868, 388.1869, 388.1870, 388.1870c, 388.1875k,
388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884, 388.1885, and
388.1886), sections 3, 11x, 19, 21f, 27b, 32t, and 283 as amended and sections 22k, 27h, 217a, and 241b as added
by 2023 PA 103, sections 6 and 97g as amended by 2023 PA 320, sections 11 and 31aa as amended by 2024 PA 148,
sections 11a, 11j, 11k, 11m, 11s, 15, 20, 20d, 21h, 22a, 22b, 22d, 22 l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c,
26d, 27a, 27c, 27l, 27p, 28, 29, 30d, 31a, 31d, 31f, 31n, 32d, 32n, 33, 35a, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g,
53a, 54, 54d, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 97k, 98, 99h, 99ee, 104, 104h, 107, 147, 147a,
147c, 147e, 152a, 152b, 201, 2 06, 207a, 207b, 207c, 217b, 222, 229a, 230, 236, 236c, 236j, 241, 241a, 241c, 244,
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248, 251, 252, 254, 256, 260, 263, 263b, 264, 268, 269, 270c, 275k, 276, 277, 278, 279, 280, 281, and 282 as amended
and sections 12d, 27r, 35m, 55, 94e, 99, 201f, 216e, 217c, 236d, 241e, 247, and 270 as added by 2024 PA 120,
section 18 as amended by 2022 PA 144, section 101 as amended by 2025 PA 5, section 104b as amended by
2018 PA 265, section 111 as amended by 1997 PA 93, section 161a as amended by 2006 PA 342, section 210 as
amended and section 210d as added by 2015 PA 85, sections 210b, 285, and 286 a s amended by 2021 PA 86,
section 212 as amended by 2016 PA 249, and section 284 as amended by 2017 PA 108, and by adding sections 12e,
18d, 22r, 22s, 31c, 32y, 35e, 61v, 97n, 99mm, 164k, 164l, 201i, 217f, 236e, 236s, and 241h; and to repeal acts and
parts of acts.
The People of the State of Michigan enact:
Sec. 3. (1) “Average daily attendance”, for the purposes of complying with federal law, means 92% of the pupils
counted in membership on the pupil membership count day, as defined in section 6(7).
(2) “Board” means the governing body of a district or public school academy.
(3) “Center” means the center for educational performance and information created in section 94a.
(4) “Community district ” means a school district organized under part 5b of the revised school code,
MCL 380.381 to 380.396.
(5) “Cooperative education program ” means a written voluntary agreement between and among districts to
provide certain educational programs for pupils in certain groups of districts. The written agreement must be
approved by all affected districts at least annually and must specify the educational programs to be provided and
the estimated number of pupils from each district who will participate in the educational programs.
(6) “Department”, except as otherwise provided in this article, means the department of education.
(7) “District” means, except as otherwise specifically provided in this act, a local school district established
under the revised school code or, except in sections 6(4), 6(6), 11x, 11y, 11aa, 12c, 13, 20, 22a, 22p, 31a, 51a(14),
105, 105c, and 166b, a public school academy. Except in section 20, district also includes a community district.
(8) “District of residence”, except as otherwise provided in this subsection, means the district in which a pupil’s
custodial parent or parents or legal guardian resides. For a pupil described in section 24b, the pupil ’s district of
residence is the district in which the pupil enrolls under that section. For a pupil described in section 6(4)(d), the
pupil’s district of residence is considered to be the district or intermediate district in which the pupil is counted
in membership under that section. For a pupil under court jurisdiction who is placed outside the district in which
the pupil’s custodial parent or parents or legal guardian resides, the pupil ’s district of residence is considered to
be the educating district or educating intermediate district.
(9) “District superintendent” means the superintendent of a district or the chief administrator of a public school
academy.

Sec. 6. (1) “Center program” means a program operated by a district or by an intermediate district for special
education pupils from several districts in programs for pupils with autism spectrum disorder, pupils with severe
cognitive impairment, pupils with moderate cognitive impairm ent, pupils with severe multiple impairments,
pupils with hearing impairment, pupils with visual impairment, and pupils with physical impairment or other
health impairment. Programs for pupils with emotional impairment housed in buildings that do not serve regular
education pupils also qualify. Unless otherwise approved by the department, a center program either serves all
constituent districts within an intermediate district or serves several districts with less than 50% of the pupils
residing in the operating district. In addition, special education center program pupils placed part -time in
noncenter programs to comply with the least restrictive environment provisions of section 1412 of the individuals
with disabilities educatio n act, 20 USC 1412, may be considered center program pupils for pupil accounting
purposes for the time scheduled in either a center program or a noncenter program.
(2) “District and high school graduation rate ” means the annual completion and pupil dropout rate that is
calculated by the center pursuant to nationally recognized standards.
(3) “District and high school graduation report ” means a report of the number of pupils, excluding adult
education participants, in the district for the immediately preceding school year, adjusted for those pupils who
have transferred into or out of the district or high school, who leave high school with a diploma or other credential
of equal status.
(4) “Membership”, except as otherwise provided in this article, means for a district, a public school academy,
or an intermediate district the sum of the product of .90 times the number of full -time equated pupils in grades
K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or intermediate
district on the pupil membership count day for the current school year, plus the product of .10 times the final
audited count from the supplemental count day of full-time equated pupils in grades K to 12 actually enrolled and
in regular daily attendance in the district, public school academy, or intermediate district for the immediately
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preceding school year. A district’s, public school academy’s, or intermediate district’s membership is adjusted as
provided under section 25e for pupils who enroll after the pupil membership count day in a strict discipline
academy operating under sections 1311b to 1311m of the revised school code, MCL 380.1311b to 380.1311m. All
pupil counts used in this subsection are as determined by the department and calculated by adding the number
of pupils registered for attendance plus pupils received by transfer an d minus pupils lost as defined by rules
promulgated by the superintendent, and as corrected by a subsequent department audit. The amount of the
foundation allowance for a pupil in membership is determined under section 20. In making the calculation of
membership, all of the following, as applicable, apply to determining the membership of a district, a public school
academy, or an intermediate district:
(a) Except as otherwise provided in this subsection, and pursuant to subsection (6), a pupil is counted in
membership in the pupil ’s educating district or districts. Except as otherwise provided in this subsection, an
individual pupil must not be counted for more than a total of 1.0 full-time equated membership.
(b) If a pupil is educated in a district other than the pupil ’s district of residence, if the pupil is not being
educated as part of a cooperative education program, if the pupil’s district of residence does not give the educating
district its approval to count the pupil in membership in the educating district, and if the pupil is not covered by
an exception specified in subsection (6) to the requirement that the educating district must have the approval of
the pupil’s district of residence to count the pupil in membership, the pupil is not counted in membership in any
district.
(c) A special education pupil educated by the intermediate district is counted in membership in the
intermediate district.
(d) A pupil placed by a court or state agency in an on-grounds program of a juvenile detention facility, a child
caring institution, or a mental health institution, or a pupil funded under section 53a, is counted in membership
in the district or intermediate district approved by the department to operate the program.
(e) A pupil enrolled in the Michigan Schools for the Deaf and Blind is counted in membership in the pupil ’s
intermediate district of residence.
(f) A pupil enrolled in a career and technical education program supported by a millage levied over an area
larger than a single district or in an area vocational -technical education program established under section 690
of the revised school code, MCL 380.690, is counted in membership only in the pupil’s district of residence.
(g) A pupil enrolled in a public school academy is counted in membership in the public school academy.
(h) For the purposes of this section and section 6a, for a cyber school, as that term is defined in section 551 of
the revised school code, MCL 380.551, that is in compliance with section 553a of the revised school code,
MCL 380.553a, a pupil ’s participation in the cyber school ’s educational program is considered regular daily
attendance, and for a district or public school academy, a pupil ’s participation in a virtual course as that term is
defined in section 21f is considered regular daily attendance. Beg inning July 1, 2021, this subdivision is subject
to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is
effective July 1, 2021. For the purposes of this subdivision, for a pupil enrolled in a cyber school, all of the following
apply with regard to the participation requirement as described in this subdivision:
(i) Except as otherwise provided in this subdivision, the pupil shall participate in each scheduled course on
pupil membership count day or supplemental count day, as applicable. If the pupil is absent on pupil membership
count day or supplemental count day, as applicable, the pupil must attend and participate in class during the
next 10 consecutive school days if the absence was unexcused, or during the next 30 calendar days if the absence
was excused.
(ii) For a pupil who is not learning sequentially, 1 or more of the following must be met on pupil membership
count day or supplemental count day, as applicable, for each scheduled course to satisfy the participation
requirement under this subdivision:
(A) The pupil attended a live lesson from the teacher.
(B) The pupil logged into a lesson or lesson activity and the login can be documented.
(C) The pupil and teacher engaged in a subject-oriented telephone conversation.
(D) There is documentation of an email dialogue between the pupil and teacher.
(E) There is documentation of activity or work between the learning coach and pupil.
(F) An alternate form of attendance as determined and agreed upon by the cyber school and the pupil
membership auditor was met.
(iii) For a pupil using sequential learning, the participation requirement under this subdivision is satisfied if
either of the following occurs:
(A) Except as otherwise provided in this sub -subparagraph, the pupil and the teacher of record or mentor
complete a 2-way interaction for 1 course during the week on which pupil membership count day or supplemental
count day, as applicable, occurs, and the 3 consecutive weeks following that week. However, if a school break is
scheduled during any of the weeks described in this sub -subparagraph that is 4 or more days in length or
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instruction has been canceled districtwide during any of the weeks described in this sub -subparagraph for 3 or
more school days, the district is not required to ensure that the pupil and the teacher of record or mentor
completed a 2-way interaction for that week. As used in this sub-subparagraph:
(I) “2-way interaction” means the communication that occurs between the teacher of record or mentor and
pupil, where 1 party initiates communication and a response from the other party follows that communication.
Responses as described in this sub -sub-subparagraph must be to the communication initiated by the teacher of
record or mentor, and not some other action taken. This interaction may occur through, but is not limited to,
means such as email, telephone, instant messaging, or face -to-face conversation. A parent- or legal-guardian-
facilitated 2-way interaction is considered a 2-way interaction if the pupil is in any of grades K to 5 and does not
yet possess the skills necessary to participate in 2-way interactions unassisted. The interactions described in this
sub-sub-subparagraph must relate to a virtual course on the pupil ’s schedule and pertain to course content or
progress.
(II) “Mentor” means a professional employee of the district who monitors the pupil ’s progress, ensures the
pupil has access to needed technology, is available for assistance, and ensures access to the teacher of record. A
mentor may also be the teacher of record if the mentor meets the definition of a teacher of record under this sub-
subparagraph and the district is the provider for the course.
(III) “Teacher of record” means a teacher to whom all of the following apply:
(1) The teacher is responsible for providing instruction, determining instructional methods for each pupil,
diagnosing learning needs, assessing pupil learning, prescribing intervention strategies and modifying lessons,
reporting outcomes, and evaluating t he effects of instruction and support strategies. The teacher of record may
coordinate the distribution and assignment of the responsibilities described in this sub -sub-sub-subparagraph
with other teachers participating in the instructional process for a course.
(2) The teacher is certified for the grade level or is working under a valid substitute permit, authorization, or
approval issued by the department.
(3) The teacher has a personnel identification code provided by the center.
(IV) “Week” means a period that starts on Wednesday and ends the following Tuesday.
(B) The pupil completes a combination of 1 or more of the following activities for each scheduled course on
pupil membership count day or supplemental count day, as applicable:
(I) Documented attendance in a virtual course where synchronous, live instruction occurred with the teacher.
(II) Documented completion of a course assignment.
(III) Documented completion of a course lesson or lesson activity.
(IV) Documented pupil access to an ongoing lesson, which does not include a login.
(V) Documented physical attendance on pupil membership count day or supplemental count day, as applicable,
in each scheduled course, if the pupil will attend at least 50% of the instructional time for each scheduled course
on-site, face-to-face with the teacher of record. As used in this sub -sub-subparagraph, “teacher of record” means
that term as defined in subparagraph (iii)(A).
(iv) For purposes of subparagraph (iii), each scheduled course currently being attempted by the pupil, rather
than every course on the pupil’s schedule for the entire term, is considered a part of each scheduled course for the
pupil.
(i) For a new district or public school academy beginning its operation after December 31, 1994, membership
for the first 2 full or partial fiscal years of operation is determined as follows:
(i) If operations begin before the pupil membership count day for the fiscal year, membership is the average
number of full -time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the
pupil membership count day for the current school year and on the supplemental count day for the current school
year, as determined by the department and calculated by adding the number of pupils registered for attendance
on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules
promulgated by the superintendent, and as corrected by a subsequent department audit, plus the final audited
count from the supplemental count day for the current school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day for the fiscal year and not later than the
supplemental count day for the fiscal year, membership is the final audited count of the number of full -time
equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the supplemental count day
for the current school year.
(j) If a district is the authorizing body for a public school academy, then, in the first school year in which pupils
are counted in membership on the pupil membership count day in the public school academy, the determination
of the district’s membership excludes from the district’s pupil count for the immediately preceding supplemental
count day any pupils who are counted in the public school academy on that first pupil membership count day who
were also counted in the district on the immediately preceding supplemental count day.
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(k) For an extended school year program approved by the superintendent, a pupil enrolled, but not scheduled
to be in regular daily attendance, on a pupil membership count day, is counted in membership.
(l) To be counted in membership, a pupil must meet the minimum age requirement to be eligible to attend
school under section 1147 of the revised school code, MCL 380.1147, and must be less than 20 years of age on
September 1 of the school year except as follows:
(i) A special education pupil who is enrolled and receiving instruction in a special education program or service
approved by the department, who does not have a high school diploma, and who is less than 26 years of age as of
September 1 of the current school year is counted in membership.
(ii) A pupil who is determined by the department to meet all of the following may be counted in membership:
(A) Is enrolled in a public school academy or an alternative education high school diploma program, that is
primarily focused on educating pupils with extreme barriers to education, such as being homeless as that term is
defined under 42 USC 11302.
(B) Had dropped out of school.
(C) Is less than 22 years of age as of September 1 of the current school year.
(iii) If a child does not meet the minimum age requirement to be eligible to attend school for that school year
under section 1147 of the revised school code, MCL 380.1147, but will be 5 years of age not later than December 1
of that school year, the district may count the child in membership for that school year if the parent or legal
guardian has notified the district in writing that the parent or legal guardian intends to enroll the child in
kindergarten for that school year.
(m) An individual who has achieved a high school diploma is not counted in membership. An individual who
has achieved a high school equivalency certificate is not counted in membership unless the individual is a student
with a disability as that term is de fined in R 340.1702 of the Michigan Administrative Code. An individual
participating in a job training program funded under former section 107a or a jobs program funded under former
section 107b, administered by the department of labor and economic opportunity, or participating in any successor
of either of those 2 programs, is not counted in membership.
(n) If a pupil counted in membership in a public school academy is also educated by a district or intermediate
district as part of a cooperative education program, the pupil is counted in membership only in the public school
academy unless a written agreem ent signed by all parties designates the party or parties in which the pupil is
counted in membership, and the instructional time scheduled for the pupil in the district or intermediate district
is included in the full-time equated membership determination under subdivision (q) and section 101. However,
for pupils receiving instruction in both a public school academy and in a district or intermediate district but not
as a part of a cooperative education program, the following apply:
(i) If the public school academy provides instruction for at least 1/2 of the class hours required under
section 101, the public school academy receives as its prorated share of the full-time equated membership for each
of those pupils an amount equal to 1 times the product of the hours of instruction the public school academy
provides divided by the number of hours required under section 101 for full-time equivalency, and the remainder
of the full-time membership for each of those pupils is allocated to th e district or intermediate district providing
the remainder of the hours of instruction.
(ii) If the public school academy provides instruction for less than 1/2 of the class hours required under
section 101, the district or intermediate district providing the remainder of the hours of instruction receives as its
prorated share of the full -time equated membership for each of those pupils an amount equal to 1 times the
product of the hours of instruction th e district or intermediate district provides divided by the number of hours
required under section 101 for full -time equivalency, and the rem ainder of the full-time membership for each of
those pupils is allocated to the public school academy.
(o) An individual less than 16 years of age as of September 1 of the current school year who is being educated
in an alternative education program is not counted in membership if there are also adult education participants
being educated in the same program or classroom.
(p) The department shall give a uniform interpretation of full-time and part-time memberships.
(q) The number of class hours used to calculate full -time equated memberships must be consistent with
section 101. In determining full -time equated memberships for pupils who are enrolled in a postsecondary
institution or for pupils engaged in an internship or work experience under section 1279h of the revised school
code, MCL 380.1279h, a pupil is not considered to be less than a full -time equated pupil solely because of the
effect of the pupil ’s postsecondary enrollment or engagement in the internship or work experience, including
necessary travel time, on the number of class hours provided by the district to the pupil.
(r) Full -time equated memberships for pupils in kindergarten are determined by dividing the number of
instructional hours scheduled and provided per year per kindergarten pupil by the same number used for
determining full-time equated memberships for pupils in grades 1 to 12. However, to the extent allowable under
federal law, for a district or public school academy that provides evidence satisfactory to the department that it
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used federal title I money in the 2 immediately preceding school fiscal years to fund full -time kindergarten, full-
time equated memberships for pupils in kindergarten are determined by dividing the number of class hours
scheduled and provided per year per kindergarten pupil by a number equal to 1/2 the number used for determining
full-time equated memberships for pupils in grades 1 to 12. The change in the counting of full -time equated
memberships for pupils in kindergarten that took effect for 2012-2013 is not a mandate.
(s) For a district or a public school academy that has pupils enrolled in a grade level that was not offered by
the district or public school academy in the immediately preceding school year, the number of pupils enrolled in
that grade level to be counted in membership is the average of the number of those pupils enrolled and in regular
daily attendance on the pupil membership count day and the supplemental count day of the current school year.
Membership is calculated by adding the number of pupils registe red for attendance in that grade level on the
pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules
promulgated by the superintendent, and as corrected by subsequent department audit, plus the final audited
count from the supplemental count day for the current school year, and dividing that sum by 2.
(t) A pupil enrolled in a cooperative education program may be counted in membership in the pupil ’s district
of residence with the written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district determines through the district’s alternative or disciplinary
education program that the best instructional placement for a pupil is in the pupil’s home or otherwise apart from
the general school population, if that placement is authorized in writing by the district superintendent and district
alternative or disciplinary education supervisor, and if the district provides appropriate instruction as d escribed
in this subdivision to the pupil at the pupi l’s home or otherwise apart from the general school population, the
district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours
of instruction the district actually provides to the pupil divided by the numb er of hours required under section
101 for full -time equivalency. For the purposes of this subdivision, a district is considered to be providing
appropriate instruction if all of the following are met:
(i) The district provides at least 2 nonconsecutive hours of instruction per week to the pupil at the pupil’s home
or otherwise apart from the general school population under the supervision of a certificated teacher.
(ii) The district provides instructional materials, resources, and supplies that are comparable to those
otherwise provided in the district’s alternative education program.
(iii) Course content is comparable to that in the district’s alternative education program.
(iv) Credit earned is awarded to the pupil and placed on the pupil’s transcript.
(v) If a pupil was enrolled in a public school academy on the pupil membership count day, if the public school
academy’s contract with its authorizing body is revoked or the public school academy otherwise ceases to operate,
and if the pupil enrolls in a district within 45 days after the pupil membership count day, the department shall
adjust the district’s pupil count for the pupil membership count day to include the pupil in the count.
(w) For a public school academy that has been in operation for at least 2 years and that suspended operations
for at least 1 semester and is resuming operations, membership is the sum of the product of .90 times the number
of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the first pupil
membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the
product of .10 times the final audited count from the most rec ent pupil membership count day or supplemental
count day that occurred before suspending operations, as determined by the superintendent.
(x) If a district’s membership for a particular fiscal year, as otherwise calculated under this subsection, would
be less than 1,550 pupils, the district has 4.5 or fewer pupils per square mile, as determined by the department,
and the district does not receive funding unde r section 22d(2), the district ’s membership is considered to be the
membership figure calculated under this subdivision. If a district educates and counts in its membership pupils
in grades 9 to 12 who reside in a contiguous district that does not operate grades 9 to 12 and if 1 or both of the
affected districts request the department to use the determination allowed under this sentence, the department
shall include the square mileage of both districts in determining the number of pupils per square mile for each of
the districts for the purposes of this subdivision. If a district has established a community engagement advisory
committee in partnership with the department of treasury, is required to submit a deficit elimination plan or an
enhanced deficit elimination plan under section 1220 of the revised school code, MCL 380.1220, and is located in
a city with a population between 9,000 and 11,000, as determined by the department, that is in a county with a
population between 150,000 and 160 ,000, as determined by the department, the district ’s membership is
considered to be the membership figure calculated under this subdivision. The membership figure calculated
under this subdivision is the greater of the following:
(i) The average of the district’s membership for the 3-fiscal-year period ending with that fiscal year, calculated
by adding the district ’s actual membership for each of those 3 fiscal years, as otherwise calculated under this
subsection, and dividing the sum of those 3 membership figures by 3.
(ii) The district’s actual membership for that fiscal year as otherwise calculated under this subsection.
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(y) Full-time equated memberships for special education pupils who are not enrolled in kindergarten but are
enrolled in a classroom program under R 340.1754 of the Michigan Administrative Code are determined by
dividing the number of class hours scheduled and provided per year by 450. Full -time equated memberships for
special education pupils who are not enrolled in kindergarten but are receiving early childhood special education
services under R 340.1755 or R 340.1862 of the Michigan Administrative Code are determined by dividing the
number of hours of service scheduled and provided per year per pupil by 180.
(z) A pupil of a district that begins its school year after Labor Day who is enrolled in an intermediate district
program that begins before Labor Day is not considered to be less than a full-time pupil solely due to instructional
time scheduled but not attended by the pupil before Labor Day.
(aa) For the first year in which a pupil is counted in membership on the pupil membership count day in a
middle college program, the membership is the average of the full -time equated membership on the pupil
membership count day and on the supplemental cou nt day for the current school year, as determined by the
department. If a pupil described in this subdivision was counted in membership by the operating district on the
immediately preceding supplemental count day, the pupil is excluded from the district ’s immediately preceding
supplemental count for the purposes of determining the district’s membership.
(bb) A district or public school academy that educates a pupil who attends a United States Olympic Education
Center may count the pupil in membership regardless of whether or not the pupil is a resident of this state.
(cc) A pupil enrolled in a district other than the pupil’s district of residence under section 1148(2) of the revised
school code, MCL 380.1148, is counted in the educating district.
(dd) For a pupil enrolled in a dropout recovery program that meets the requirements of section 23a, the pupil
is counted as 1/12 of a full -time equated membership for each month that the district operating the program
reports that the pupil was enrolled in the program and was in full attendance or based on the number of
successfully completed courses by the pupil with each course equivalent to 1/12 of a full-time equated membership.
A district may claim more than 1/12 of a full-time equated membership within a month for an enrolled pupil who
was in full attendance and successfully completed more than 1 required course. However, if the special
membership counting provisions under this subdivision and the operation of the other membership counting
provisions under this subsection result in a pupil being counted as more than 1.0 FTE in a fiscal year, the payment
made for the pupil under sections 22a and 22b must not be based on more than 1.0 FTE for that pupil, and any
portion of an FTE for that pupil that excee ds 1.0 is instead paid under section 25g. The district operating the
program shall report to the center the number of pupils who were enrolled in the program and were in full
attendance for a month not later than 30 days after the end of the month. A distr ict shall not report a pupil as
being in full attendance for a month unless both of the following are met:
(i) A personalized learning plan is in place on or before the first school day of the month for the first month
the pupil participates in the program.
(ii) Either of the following is met:
(A) The pupil meets the district’s definition under section 23a of satisfactory monthly progress for that month
or, if the pupil does not meet that definition of satisfactory monthly progress for that month, the pupil did meet
that definition of satisfactory monthly progress in the immedi ately preceding month and appropriate
interventions, as defined by the district, are implemented within 10 school days after it is determined that the
pupil does not meet that definition of satisfactory monthly progress.
(B) For the first 2 months that the pupil participates in the program, the pupil earns 0.25 credit by the end of
the second month. A pupil described in this sub -subparagraph may be retroactively reported as being in full
attendance for the first month that the pupil participated in the program.
(ee) A pupil participating in a virtual course under section 21f is counted in membership in the district
enrolling the pupil.
(ff) If a public school academy that is not in its first or second year of operation closes at the end of a school
year and does not reopen for the next school year, the department shall adjust the membership count of the district
or other public school academy in which a former pupil of the closed public school academy enrolls and is in regular
daily attendance for the next school year to ensure that the district or other public school academy receives the
same amount of membership aid for the pupil as if the pupil were counted in the district or other public school
academy on the supplemental count day of the preceding school year.
(gg) If a special education pupil is expelled under section 1311 or 1311a of the revised school code,
MCL 380.1311 and 380.1311a, and is not in attendance on the pupil membership count day because of the
expulsion, and if the pupil remains enrolled in the district and resumes regular daily attendance during that
school year, the district ’s membership is adjusted to count the pupil in membership as if the pupil had been in
attendance on the pupil membership count day.
(hh) A pupil enrolled in a community district is counted in membership in the community district.
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(ii) A part-time pupil enrolled in a nonpublic school in grades K to 12 in accordance with section 166b must
not be counted as more than 0.75 of a full-time equated membership.
(jj) A district that borders another state or a public school academy that operates at least grades 9 to 12 and
is located within 20 miles of a border with another state may count in membership a pupil who is enrolled in a
course at a college or university that is located in the bordering state and within 20 miles of the border with this
state if all of the following are met:
(i) The pupil would meet the definition of an eligible student under the postsecondary enrollment options act,
1996 PA 160, MCL 388.511 to 388.524, if the course were an eligible course under that act.
(ii) The course in which the pupil is enrolled would meet the definition of an eligible course under the
postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, if the course were provided by an
eligible postsecondary institution under that act.
(iii) The department determines that the college or university is an institution that, in the other state, fulfills
a function comparable to a state university or community college, as those terms are defined in section 3 of the
postsecondary enrollment options act, 1996 PA 160, MCL 388.513, or is an independent nonprofit degree-granting
college or university.
(iv) The district or public school academy pays for a portion of the pupil’s tuition at the college or university in
an amount equal to the eligible charges that the district or public school academy would pay to an eligible
postsecondary institution under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524,
as if the course were an eligible course under that act.
(v) The district or public school academy awards high school credit to a pupil who successfully completes a
course as described in this subdivision.
(kk) A pupil enrolled in a middle college program may be counted for more than a total of 1.0 full-time equated
membership for any of the school years in which the pupil is enrolled in the middle college program, but the total
full-time equated membership for that pupil for all of the school years in which the pupil is enrolled in high school
must not be greater than 5.00 full -time equated membership if the pupil is enrolled in more than the minimum
number of instructional days and hours required under sect ion 101 and the pupil is expected to complete the
5-year program with both a high school diploma and at least 60 transferable college credits or is expected to earn
an associate’s degree in fewer than 5 years. A pupil who graduates with both a high school diploma and at least
60 transferable college credits or an associate degree at least 1 semester early is considered to have completed the
middle college program in fewer than 5 years.
(ll) If a district ’s or public school academy ’s membership for a particular fiscal year, as otherwise calculated
under this subsection, includes pupils counted in membership who are enrolled under section 166b, all of the
following apply for the purposes of this subdivision:
(i) If the district ’s or public school academy ’s membership for pupils counted under section 166b equals or
exceeds 5% of the district ’s or public school academy ’s membership for pupils not counted in membership under
section 166b in the immediately preceding fiscal year, then the growth in the district’s or public school academy’s
membership for pupils counted under section 166b must not exceed 10%.
(ii) If the district’s or public school academy ’s membership for pupils counted under section 166b is less than
5% of the district ’s or public school academy ’s membership for pupils not counted in membership under
section 166b in the immediately preceding fiscal year, then the district ’s or public school academy’s membership
for pupils counted under section 166b must not exceed the greater of the following:
(A) Five percent of the district’s or public school academy’s membership for pupils not counted in membership
under section 166b.
(B) Ten percent more than the district ’s or public school academy ’s membership for pupils counted under
section 166b in the immediately preceding fiscal year.
(iii) If 1 or more districts consolidate or are parties to an annexation, then the calculations under
subparagraphs (i) and (ii) must be applied to the combined total membership for pupils counted in those districts
for the fiscal year immediately preceding the consolidation or annexation.
(5) “Public school academy” means that term as defined in section 5 of the revised school code, MCL 380.5.
(6) “Pupil” means an individual in membership in a public school. A district must have the approval of the
pupil’s district of residence to count the pupil in membership, except approval by the pupil ’s district of residence
is not required for any of the following:
(a) A nonpublic part-time pupil enrolled in grades K to 12 in accordance with section 166b.
(b) A pupil receiving 1/2 or less of the pupil’s instruction in a district other than the pupil’s district of residence.
(c) A pupil enrolled in a public school academy.
(d) A pupil enrolled in a district other than the pupil’s district of residence if the pupil is enrolled in accordance
with section 105 or 105c.
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(e) A pupil who has made an official written complaint or whose parent or legal guardian has made an official
written complaint to law enforcement officials and to school officials of the pupil ’s district of residence that the
pupil has been the victim of a criminal sexual assault or other serious assault, if the official complaint either
indicates that the assault occurred at school or that the assault was committed by 1 or more other pupils enrolled
in the school the pupil would otherwise attend in the di strict of residence or by an employee of the district of
residence. A person who intentionally makes a false report of a crime to law enforcement officials for the purposes
of this subdivision is subject to section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which
provides criminal penalties for that conduct. As used in this subdivision:
(i) “At school” means in a classroom, elsewhere on school premises, on a school bus or other school -related
vehicle, or at a school-sponsored activity or event whether or not it is held on school premises.
(ii) “Serious assault” means an act that constitutes a felony violation of chapter XI of the Michigan penal code,
1931 PA 328, MCL 750.81 to 750.90h, or that constitutes an assault and infliction of serious or aggravated injury
under section 81a of the Michigan penal code, 1931 PA 328, MCL 750.81a.
(f) A pupil whose district of residence changed after the pupil membership count day and before the
supplemental count day and who continues to be enrolled on the supplemental count day as a nonresident in the
district in which the pupil was enrolled as a resident on the pupil membership count day of the same school year.
(g) A pupil enrolled in an alternative education program operated by a district other than the pupil ’s district
of residence who meets 1 or more of the following:
(i) The pupil has been suspended or expelled from the pupil ’s district of residence for any reason, including,
but not limited to, a suspension or expulsion under section 1310, 1311, or 1311a of the revised school code,
MCL 380.1310, 380.1311, and 380.1311a.
(ii) The pupil had previously dropped out of school.
(iii) The pupil is pregnant or is a parent.
(iv) The pupil has been referred to the program by a court.
(h) A pupil enrolled in the Michigan Virtual School, for the pupil’s enrollment in the Michigan Virtual School.
(i) A pupil who is the child of a person who works at the district or who is the child of a person who worked at
the district as of the time the pupil first enrolled in the district but who no longer works at the district due to a
workforce reduction. As used in this subdivision, “child” includes an adopted child, stepchild, or legal ward.
(j) An expelled pupil who has been denied reinstatement by the expelling district and is reinstated by another
school board under section 1311 or 1311a of the revised school code, MCL 380.1311 and 380.1311a.
(k) A pupil enrolled in a district other than the pupil ’s district of residence in a middle college program if the
pupil’s district of residence and the enrolling district are both constituent districts of the same intermediate
district.
(l) A pupil enrolled in a district other than the pupil’s district of residence who attends a United States Olympic
Education Center.
(m) A pupil enrolled in a district other than the pupil’s district of residence under section 1148(2) of the revised
school code, MCL 380.1148.
(n) A pupil who enrolls in a district other than the pupil’s district of residence as a result of the pupil’s school
not making adequate yearly progress under the no child left behind act of 2001, Public Law 107-110, or the every
student succeeds act, Public Law 114-95.
However, if a district educates pupils who reside in another district and if the primary instructional site for
those pupils is established by the educating district after 2009 -2010 and is located within the boundaries of that
other district, the educating district must have the approval of that other district to count those pupils in
membership.
(7) “Pupil membership count day” of a district or intermediate district means:
(a) Except as provided in subdivision (b) or (c), either of the following:
(i) The first Wednesday in October each school year.
(ii) For a district or building in which school is not in session on the Wednesday described in subparagraph (i)
due to conditions not within the control of school authorities, with the approval of the superintendent, the
immediately following day on which school is in session in the district or building.
(b) Except as otherwise provided in subdivision (c), for a district or intermediate district maintaining school
during the entire school year, the following days:
(i) Fourth Wednesday in July.
(ii) First Wednesday in October.
(iii) Second Wednesday in February.
(iv) Fourth Wednesday in April.
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(c) If a date listed in subdivision (a) or (b) is on a day of religious or cultural significance, as determined by the
district or intermediate district, the immediately following day on which school is in session in the district or
building.
(8) “Pupils in grades K to 12 actually enrolled and in regular daily attendance ” means, except as otherwise
provided in this section, pupils in grades K to 12 in attendance and receiving instruction in all classes for which
they are enrolled on the pupil membership count day or the supplemental count day, as applicable. Except as
otherwise provided in this section and subsection, a pupil who is absent from any of the classes in which the pupil
is enrolled on the pupil membership count day or supplemental count day and who does not attend each of those
classes during the 10 consecutive school days immediately following the pupil membership count day or
supplemental count day, except for a pupil who has been excused by the district, is not counted as 1.0 full -time
equated membership. Except as otherwise provided in this section, a pupil who is excused from attendance on the
pupil membership count day or supplemental count day and who fails to attend each of the classes in which the
pupil is enrolled within 30 calendar days after the pupil membership count day or supplemental count day is not
counted as 1.0 full -time equated membership. Except as otherwise provided in this section, in addition, a pupil
who was enrolled and in attendance in a district, intermediate district, or public school academy before the pupil
membership count day or supplemental count day of a particular year but was expelled or suspended on the pupil
membership count day or supplemental count day is only counted as 1.0 full-time equated membership if the pupil
resumed attendance in the district, intermediate district, or public school academy within 45 days after the pupil
membership count day or supplemental count day of that particular year. Except as otherwise provided in this
section, a pupil not counted as 1.0 full -time equated membership due to an absence from a class is counted as a
prorated membership for the classes the pupil attended. For purposes of this subsection:
(a) “Appropriately placed” means holding a valid Michigan educator credential with the required grade range
and discipline or subject area for the assignment, as defined by the superintendent of public instruction.
(b) “Class” means either of the following, as applicable:
(i) A period of time in 1 day when pupils and an individual who is appropriately placed under a valid certificate,
substitute permit, authorization, or approval issued by the department, are together and instruction is taking
place. This subdivision does not apply for the 2024-2025 and 2025-2026 school years.
(ii) For the 2024-2025 and 2025-2026 school years only, a period of time in 1 day when pupils and a certificated
teacher, a teacher engaged to teach under section 1233b of the revised school code, MCL 380.1233b, or an
individual working under a valid substitute permit, authorization, or approval issued by the department are
together and instruction is taking place.
(9) “Rule” means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
(10) “The revised school code” means the revised school code, 1976 PA 451, MCL 380.1 to 380.1852.
(11) “School district of the first class”, “first class school district”, and “district of the first class” mean, for the
purposes of this article only, a district that had at least 40,000 pupils in membership for the immediately
preceding fiscal year.
(12) “School fiscal year” means a fiscal year that commences July 1 and continues through June 30.
(13) “State board” means the state board of education.
(14) “Superintendent”, unless the context clearly refers to a district or intermediate district superintendent,
means the superintendent of public instruction described in section 3 of article VIII of the state constitution of
1963.
(15) “Supplemental count day ” means the day on which the supplemental pupil count is conducted under
section 6a.
(16) “Tuition pupil” means a pupil of school age attending school in a district other than the pupil’s district of
residence for whom tuition may be charged to the district of residence. Tuition pupil does not include a pupil who
is a special education pupil, a pupil described in subsection (6)(d) to (n), or a pupil whose parent or guardian
voluntarily enrolls the pupil in a district that is not the pupil’s district of residence. A pupil’s district of residence
shall not require a high school tuition pupil, as provided under section 111, to attend another school district after
the pupil has been assigned to a school district.
(17) “State school aid fund” means the state school aid fund established in section 11 of article IX of the state
constitution of 1963.
(18) “Taxable value ” means, except as otherwise provided in this article, the taxable value of property as
determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(19) “Textbook” means a book, electronic book, or other instructional print or electronic resource that is selected
and approved by the governing board of a district and that contains a presentation of principles of a subject, or
that is a literary work relevant to the study of a subject required for the use of classroom pupils, or another type
of course material that forms the basis of classroom instruction.
(20) “Total state aid” or “total state school aid ”, except as otherwise provided in this article, means the total
combined amount of all funds due to a district, intermediate district, or other entity under this article.
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Sec. 11. (1) For the fiscal year ending September 30, 2025, there is appropriated for the public schools of this
state and certain other state purposes relating to education the sum of $17,936,546,300.00 from the state school
aid fund, the sum of $78,830,6 00.00 from the general fund, an amount not to exceed $41,000,000.00 from the
community district education trust fund created under section 12 of the Michigan trust fund act, 2000 PA 489,
MCL 12.262, an amount not to exceed $125,000,000.00 from the school t ransportation fund created under
section 22k, an amount not to exceed $71,000,000.00 from the enrollment stabilization fund created under
section 29, an amount not to exceed $30,000,000.00 from the school meals reserve fund created under section 30e,
an amount not to exceed $18,000,000.00 from the great start readiness program reserve fund created under
section 32e, an amount not to exceed $481,400, 000.00 from the MPSERS retirement obligation reform reserve
fund created under section 147b, and an amount not to exceed $30,000,000.00 from the educator fellowship public
provider fund created in section 27d. For the fiscal year ending September 30, 2026, there is appropriated for the
public schools of this state and certain other state purposes relating to educa tion the sum of $18,366,334,700.00
from the state school aid fund, the sum of $73,151,100.00 from the general fund, an amount not to exceed
$100,000,000.00 from the school consolidation and infrastructure fund created under section 11x, an amount not
to exceed $125,000,000.00 from the school transportation fund created under section 22k, an amount not to exceed
$71,000,000.00 from the enrollment stabilization fund created under section 29, an amount not to exceed
$18,000,000.00 from the great start readiness program reserve fund created under section 32e, an amount not to
exceed $30,000,000.00 from the educator fellowship public provider fund created under section 27d, an amount
not to exceed $97,037,400.00 from the state school aid pupil support reserve fun d created under section 22r, and
an amount not to exceed $600,000.00 from the general pupil support reserve fund created under section 22s. In
addition, all available federal funds are only appropriated as allocated in this article for the fiscal years end ing
September 30, 2025 and September 30, 2026.
(2) The appropriations under this section are allocated as provided in this article. Money appropriated under
this section from the general fund must be expended to fund the purposes of this article before the expenditure of
money appropriated under this section from the state school aid fund.
(3) Any general fund allocations under this article that are not expended by the end of the fiscal year are
transferred to the school aid stabilization fund created under section 11a.

Sec. 11a. (1) The school aid stabilization fund is created as a separate account within the state school aid fund.
(2) The state treasurer may receive money or other assets from any source for deposit into the school aid
stabilization fund. The state treasurer shall deposit into the school aid stabilization fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue for a fiscal year that remains in the state
school aid fund as of the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid stabilization fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may not be expended without a specific appropriation
from the school aid stabilization fund. Money in the school aid stabilization fund must be expended only for
purposes for which state school aid fund money may be expended.
(4) The state treasurer shall direct the investment of the school aid stabilization fund. The state treasurer
shall credit to the school aid stabilization fund interest and earnings from fund investments.
(5) Money in the school aid stabilization fund at the close of a fiscal year remains in the school aid stabilization
fund and does not lapse to the unreserved school aid fund balance or the general fund.
(6) If the maximum amount appropriated under section 11 from the state school aid fund for a fiscal year
exceeds the amount available for expenditure from the state school aid fund for that fiscal year, there is
appropriated from the school aid stabilization fund to the state school aid fund an amount equal to the projected
shortfall as determined by the department of treasury, but not to exceed available money in the school aid
stabilization fund. If the money in the school aid stabilization fund is insuff icient to fully fund an amount equal
to the projected shortfall, the state budget director shall notify the legislature as required under section 296(2)
and state payments in an amount equal to the remainder of the projected shortfall must be prorated in the manner
provided under section 296(3).
(7) For 2025 -2026 in addition to the appropriations in section 11, there is appropriated from the school aid
stabilization fund to the state school aid fund the amount necessary to fully fund the allocations under this article.

Sec. 11j. From the state school aid fund money appropriated in section 11, there is allocated an amount not to
exceed $23,000,000.00 for 2025-2026 for payments to the school loan bond redemption fund in the department of
treasury on behalf of districts and intermediate districts. Notwithstanding section 296 or any other provision of
this act, funds allocated under this section are not subject to proration and must be paid in full.
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Sec. 11k. For 2025 -2026, there is appropriated from the general fund to the school loan revolving fund an
amount equal to the amount of school bond loans assigned to the Michigan finance authority, not to exceed the
total amount of school bond loans held i n reserve as long -term assets. As used in this section, “school loan
revolving fund ” means that fund created in section 16c of the shared credit rating act, 1985 PA 227,
MCL 141.1066c.

Sec. 11m. From the state school aid fund money appropriated in section 11, there is allocated for 2025 -2026
an amount not to exceed $5,000,000.00 for fiscal year cash -flow borrowing costs solely related to the state school
aid fund established under section 11 of article IX of the state constitution of 1963.

Sec. 11s. (1) From the state school aid fund money appropriated in section 11, there is allocated $5,000,000.00
for 2025-2026 only and from the general fund money appropriated in section 11, there is allocated $3,000,000.00
for 2025 -2026 only for the purpo se of providing services and programs to children who reside within the
boundaries of a district with the majority of its territory located within the boundaries of a city for which an
executive proclamation of emergency concerning drinking water is issued in the current or immediately preceding
10 fiscal years under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, and that has at least
4,500 pupils in membership for the 2016 -2017 fiscal year or has at least 2,600 pupils in membership for a fiscal
year after 2016-2017.
(2) From the general fund money allocated in subsection (1), there is allocated to a district with the majority
of its territory located within the boundaries of a city for which an executive proclamation of emergency concerning
drinking water is issued in the current or immediately preceding 10 fiscal years under the emergency
management act, 1976 PA 390, MCL 30.401 to 30.421, and that has at least 4,500 pupils in membership for the
2016-2017 fiscal year or has at least 2,600 pupils in membership for a fiscal year after 2016-2017, an amount not
to exceed $2,425,000.00 for 2025-2026 for the purpose of employing school nurses, classroom aides, school social
workers, and community health workers; for the provision of behavioral or mental health supports, parental
engagement activities, community coordination activities, and other support services; and for purchasing program
supplies. The district shall provide a report to the department in a form, manner, and frequency prescribed by
the department. The department shall provide a copy of that report to the governor, the house and senate school
aid subcommittees, the house and senate fiscal agencies, and the state budget director within 5 days after receipt.
The report must provide at least the following information:
(a) How many personnel were hired using the funds allocated under this subsection.
(b) A description of the services provided to pupils by those personnel.
(c) How many pupils received each type of service identified in subdivision (b).
(d) Any other information the department considers necessary to ensure that the children described in
subsection (1) received appropriate levels and types of services.
(3) For 2025-2026 only, from the general fund money allocated in subsection (1), there is allocated an amount
not to exceed $575,000.00 for nutritional services to children described in subsection (1).
(4) For 2025-2026 only, from the state school aid fund money allocated in subsection (1), there is allocated an
amount not to exceed $5,000,000.00 to an intermediate district that has a constituent district described in
subsection (2) for interventions and supports for students in grades K to 12 who were impacted by an executive
proclamation of emergency described in subsection (1) concerning drinking water. Funds under this subsection
must be used for behavioral supports, social workers, counselors, psycho logists, nursing services, including, but
not limited to, vision and hearing services, transportation services, parental engagement, community
coordination, and other support services.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 11x. (1) The school consolidation and infrastructure fund is created as a separate account within the state
school aid fund for the purpose of improving student academic outcomes, increasing the efficiency of the state ’s
public education system, and creating a healthy and safe space for students in this state.
(2) The state treasurer may receive money or other assets from any source for deposit into the school
consolidation and infrastructure fund. The state treasurer shall direct the investment of the school consolidation
and infrastructure fund. The state treasurer shall credit to the school consolidatio n and infrastructure fund
interest and earnings from school consolidation and infrastructure fund investments.
(3) Money in the school consolidation and infrastructure fund at the close of the fiscal year remains in the
school consolidation and infrastructure fund and does not lapse to the state school aid fund or the general fund.
(4) The department of treasury is the administrator of the school consolidation and infrastructure fund for
auditing purposes.
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(5) Money available in the school consolidation and infrastructure fund must not be expended without a specific
appropriation.
(6) From the state school aid fund money appropriated under section 11, there is allocated for 2022-2023 only an
amount not to exceed $5,000,000.00 for grants to districts and intermediate districts to support the cost of a
feasibility study or analysis of consolidation or the consolidation of services among 1 or more buildings within a
district, among 1 or more districts, or among 1 or more intermediate districts. Districts and intermediate districts
may apply for a grant under this subsection to the department on a first -come, first-serve basis. The maximum
amount of a grant to be distributed under this subsection may not exceed $250,000.00. Notwithstanding section 17b,
the department shall make payments under this subsection on a schedule determined by the department.
(7) To be eligible for a grant under subsection (6), a district or intermediate district must demonstrate to the
department, in the manner prescribed by the department, that it will conduct a feasibility study or analysis and
that all of the following will be met:
(a) Within 30 days after completion of the study or analysis, the district or intermediate district will make the
results of the study or analysis available to all districts and intermediate districts included in the study or
analysis. Within 60 days after the completion of the study or analysis, the district or intermediate district will
make the results available on a publicly available website.
(b) The study or analysis may include, but is not limited to, consolidation opportunities in the following areas:
(i) Financial services, which may include, but is not limited to, the following:
(A) Budgeting and staffing.
(B) Payroll.
(C) Employee benefits.
(D) State reporting.
(E) Software consolidation to achieve common software throughout the intermediate district.
(ii) Human resources, which may include, but is not limited to, the following:
(A) Onboarding.
(B) Title IX administration.
(C) Hiring.
(D) Software consolidation to achieve common software throughout the intermediate district.
(iii) Information technology, which may include, but is not limited to, the following:
(A) Software consolidation to achieve common software throughout the intermediate district.
(B) Fiber projects.
(C) Cybersecurity.
(D) One-to-one device management.
(iv) Grant management and reporting, which may include, but is not limited to, the following:
(A) Management of all state grant sites and databases.
(B) Grant reporting.
(v) Cash management, which may include, but is not limited to, the opportunities for intermediate districts
and districts to contract on cash flow management to maximize interest earnings.
(vi) Debt issuance and management, including at least all of the following:
(A) Refunding opportunities.
(B) New bond issue analysis.
(vii) School facility consolidation.
(viii) Consolidation of transportation-related activities.
(ix) The physical consolidation of districts.
(8) An intermediate district that receives a grant under this section shall meet with its constituent districts
located within the intermediate district to discuss the results of the study or analysis and to implement changes
where feasible. The applicatio n for an intermediate district must include a brief description of how the
intermediate district will conduct these meetings.
(9) To be eligible for the receipt of funding for infrastructure -related projects appropriated from the school
consolidation and infrastructure fund created under this section, a district must allow for the facility condition
assessments described in section 11y to be conducted in the district. It is the intent of the legislature that money
in the school consolidation and infrastructure fund will not be appropriated for infrastructure projects until the
completion of the facility condition assessments described in section 11y.
(10) For 2025-2026, $83,400,000.00 from the school consolidation and infrastructure fund must be deposited
into the state school aid fund.

Sec. 12d. (1) From the school consolidation and infrastructure fund created under section 11x, there is allocated
for 2023-2024 only an amount not to exceed $110,000,000.00 for the purposes of this section.
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(2) From the amount allocated in subsection (1), there is allocated an amount not to exceed $75,000,000.00 for
grants to districts and intermediate districts to support costs related to internal consolidation within the district
or intermediate district. All of the following apply to grants under this subsection:
(a) The department shall allow grants for applicants that have already taken actions for internal consolidation
within the previous 2 years and grants for applicants that have not yet begun internal consolidation activities.
(b) The department shall prioritize applications from districts and intermediate districts that meet any of the
following criteria:
(i) Are in an opportunity index band, as described in section 31a, of 3 or higher.
(ii) Are an intermediate district for which the percentage of pupils in membership who were determined to be
economically disadvantaged in the immediately preceding fiscal year is equal to or greater than the minimum
percentage for a district or public school academy to be in an opportunity index band, as described in section 31a,
of 3 or higher.
(iii) Are experiencing declining enrollment.
(iv) Have no ability to issue bonds for infrastructure needs, or have made a good-faith effort, as determined by
the department, to issue bonds for infrastructure needs.
(c) Grants may be used for operational expenses related to internal consolidation and for infrastructure needs.
Infrastructure needs may include, but are not limited to, the removal of buildings.
(3) From the amount allocated in subsection (1), $35,000,000.00 is allocated as follows:
(a) $15,000,000.00 to Detroit Public Schools Community District to support the construction of the Cooley High
School athletic complex.
(b) $10,000,000.00 to Wayne RESA to support the construction of an academic and professional building in the
city of Wayne.
(c) $5,000,000.00 to Beecher Community School District to support the construction of a high school in the
district.
(d) $4,000,000.00 to Taylor School District for costs related to a new high school in the district.
(e) $1,000,000.00 to the School District of the City of Hamtramck to support the costs of building infrastructure
upgrades and maintenance.
(4) Subject to the provisions of this subsection, in addition to the money appropriated in section 11, from the
state school aid fund, there is appropriated and allocated for 2025-2026 an amount not to exceed $4,000,000.00 to
Taylor School District for cos ts related to a new high school in the district or for other infrastructure purposes.
The appropriation and allocation under this subsection is contingent on the effective issuance of a directive by the
budget director, pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.451a, to lapse
$4,000,000.00 of remaining funding from a work project that was established under this section in 2023-2024. The
amount allocated under this subsection may not exceed the amount lapsed from the work project referenced in
the immediately preceding sentence.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 12e. (1) From the school consolidation and infrastructure fund money appropriated in section 11, there is
allocated for 2025 -2026 only an amount estimated at $100,000,000.00 for grants to districts and intermediate
districts for infrastructure needs as described in this section.
(2) Districts and intermediate districts must apply on a competitive basis for funding in a form and manner
determined by the department.
(3) If the amount allocated under subsection (1) is insufficient to fully fund awards under this section, there is
appropriated from the school consolidation and infrastructure fund described in section 11x the amount necessary
to fully fund these awards, or the maximum available in the fund, whichever is less. The state budget director
shall provide notification to the house and senate appropriations subcommittees on school aid and the house and
senate fiscal agencies regarding any additional appropriation described in this subsection.
(4) The department shall prioritize applications from districts and intermediate districts that meet any of the
following criteria:
(a) Are in an opportunity index band, as described in section 31a, of 4 or higher.
(b) Are an intermediate district for which the percentage of pupils in membership who were determined to be
economically disadvantaged in the immediately preceding fiscal year is equal to or greater than the minimum
percentage for a district or public school academy to be in an opportunity index band, as described in section 31a,
of 4 or higher.
(c) Have infrastructure needs related to HVAC systems or roofing.
(d) Have no ability to issue bonds for infrastructure needs, or have made a good-faith effort, as determined by
the department, to issue bonds for infrastructure needs.
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(5) Funds awarded in subsection (4) may be used only to address infrastructure needs that were identified in
the statewide school facilities study issued pursuant to section 11y.
(6) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended
funds for 2025-2026 are carried forward into 2026 -2027. The purpose of the work project is to fund district and
intermediate district infrastructure needs. The estimated completion date of the work project is September 30,
2030.
(7) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 15. (1) If a district or intermediate district fails to receive its proper apportionment, the department, upon
satisfactory proof that the district or intermediate district was entitled justly, shall apportion the deficiency in
the next apportionment. Subject to subsections (2) and (3), if a district or intermediate district has received more
than its proper apportionment, the department, upon satisfactory proof, shall deduct the excess in the next
apportionment. Notwithstanding any other provision in this article, state aid overpayments to a district, other
than overpayments in payments for special education or special education transportation, may be recovered from
any payment made under this article other than a special education or special education transportation payment,
from the proceeds of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to
141.942, or from the proceeds of millage levied or pledged under section 1211 of the revised school code,
MCL 380.1211. State aid overpayments made in special education or special education transportation payments
may be recovered from subsequent special education or special education transportation payments, from the
proceeds of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,
or from the proceeds of millage levied or pledged under section 1211 of the revised school code, MCL 380.1211.
(2) If the result of an audit conducted by or for the department affects the current fiscal year membership, the
department shall adjust affected payments in the current fiscal year. A deduction due to an adjustment made as
a result of an audit conducted by or for the department, or as a result of information obtained by the department
from the district, an intermediate district, the department of treasury, or the office of auditor general, must be
deducted from the district’s apportionments when the adjust ment is finalized. At the request of the district and
upon the district presenting evidence satisfactory to the department of the hardship, the department may grant
up to an additional 4 years for the adjustment and may advance payments to the district oth erwise authorized
under this article if the district would otherwise experience a significant hardship in satisfying its financial
obligations. However, a district that presented satisfactory evidence of hardship and was undergoing an extended
adjustment during 2018-2019 may continue to use the period of extended adjustment as originally granted by the
department.
(3) If, based on an audit by the department or the department ’s designee or because of new or updated
information received by the department, the department determines that the amount paid to a district or
intermediate district under this article for the current fiscal year or a prior fiscal year was incorrect, the
department shall make the appropriate deduction or payment in the district’s or intermediate district’s allocation
in the next apportionment after the adjustment is finalized. The department shal l calculate the deduction or
payment according to the law in effect in the fiscal year in which the incorrect amount was paid. If the district
does not receive an allocation for the fiscal year or if the allocation is insufficient to pay the amount of any
deduction, the amount of any deduction otherwise applicable must be satisfied from the proceeds of a loan to the
district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds of
millage levied or pledged under s ection 1211 of the revised school code, MCL 380.1211, as determined by the
department.
(4) If the department makes an adjustment under this section based in whole or in part on a membership audit
finding that a district or intermediate district employed an educator in violation of certification requirements
under the revised school code and rules promulgated by the department, the department shall prorate the
adjustment according to the period of noncompliance with the certification requirements.
(5) The department may conduct audits, or may direct audits by designee of the department, for the current
fiscal year and the immediately preceding fiscal year of all records related to a program for which a district or
intermediate district has received funds under this article.
(6) Expenditures made by departments under this article that are caused by the write-off of prior year accruals
may be funded by revenue from the write-off of prior year accruals.
(7) In addition to funds appropriated in section 11 for all programs and services, there is appropriated for 2024-
2025 and 2025-2026 for obligations in excess of applicable appropriations an amount equal to the collection of
overpayments, but not to exceed amounts available from overpayments.
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Sec. 18. (1) Except as provided in another section of this article, each district or other entity shall apply the
money received by the district or entity under this article to salaries and other compensation of teachers and other
employees, tuition, transportation, lighting, heating, ventilation, water service, the purchase of textbooks, other
supplies, and any other school operating expenditures defined in section 7. However, not more than 20% of the
total amount received by a district under sections 22a and 22b or received by an intermediate district under
section 81 may be t ransferred by the board to either the capital projects fund or to the debt retirement fund for
debt service. A district or other entity shall not apply or take the money for a purpose other than as provided in
this section. The department shall determine t he reasonableness of expenditures and may withhold from a
recipient of funds under this article the apportionment otherwise due upon a violation by the recipient. A district
must not be prohibited or limited from using funds appropriated or allocated under this article that are permitted
for use for noninstructional services to contract or subcontract with an intermediate district, third party, or vendor
for the noninstructional services.
(2) A district or intermediate district shall adopt an annual budget in a manner that complies with the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days after a district board adopts
its annual operating budget for t he following school fiscal year, or after a district board adopts a subsequent
revision to that budget, the district shall make all of the following available through a link on its website
homepage, or may make the information available through a link on its intermediate district’s website homepage,
in a form and manner prescribed by the department:
(a) The annual operating budget and subsequent budget revisions.
(b) Using data that have already been collected and submitted to the department, a summary of district
expenditures for the most recent fiscal year for which they are available, expressed in the following 2 visual
displays:
(i) A chart of personnel expenditures, broken into the following subcategories:
(A) Salaries and wages.
(B) Employee benefit costs, including, but not limited to, medical, dental, vision, life, disability, and long-term
care benefits.
(C) Retirement benefit costs.
(D) All other personnel costs.
(ii) A chart of all district expenditures, broken into the following subcategories:
(A) Instruction.
(B) Support services.
(C) Business and administration.
(D) Operations and maintenance.
(c) Links to all of the following:
(i) The current collective bargaining agreement for each bargaining unit.
(ii) Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long -term
care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or
employee in the district.
(iii) The audit report of the financial audit conducted under subsection (4) for the most recent fiscal year for
which it is available.
(iv) The bids required under section 5 of the public employees health benefit act, 2007 PA 106, MCL 124.75.
(v) The district’s written policy governing procurement of supplies, materials, and equipment.
(vi) The district ’s written policy establishing specific categories of reimbursable expenses, as described in
section 1254(2) of the revised school code, MCL 380.1254.
(vii) Either the district’s accounts payable check register for the most recent school fiscal year or a statement
of the total amount of expenses incurred by board members or employees of the district that were reimbursed by
the district for the most recent school fiscal year.
(d) The total salary and a description and cost of each fringe benefit included in the compensation package for
the superintendent of the district and for each employee of the district whose salary exceeds $100,000.00.
(e) The annual amount spent on dues paid to associations.
(f) The annual amount spent on lobbying or lobbying services. As used in this subdivision, “lobbying” means
that term as defined in section 5 of 1978 PA 472, MCL 4.415.
(g) Any deficit elimination plan or enhanced deficit elimination plan the district was required to submit under
the revised school code.
(h) Identification of all credit cards maintained by the district as district credit cards, the identity of all
individuals authorized to use each of those credit cards, the credit limit on each credit card, and the dollar limit,
if any, for each individual’s authorized use of the credit card.
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(i) Costs incurred for each instance of out-of-state travel by the school administrator of the district that is fully
or partially paid for by the district and the details of each of those instances of out -of-state travel, including at
least identification of each individual on the trip, destination, and purpose.
(3) For the information required under subsection (2)(a), (2)(b)( i), and (2)(c), an intermediate district shall
provide the same information in the same manner as required for a district under subsection (2).
(4) For the purposes of determining the reasonableness of expenditures, whether a district or intermediate
district has received the proper amount of funds under this article, and whether a violation of this article has
occurred, all of the following apply:
(a) The department shall require that each district and intermediate district have an audit of the district ’s or
intermediate district’s financial and pupil accounting records conducted at least annually, and at such other times
as determined by the department, at the expense of the district or intermediate district, as applicable. The audits
must be performed by a certified public accoun tant or by the intermediate district superintendent, as may be
required by the department, or in the case of a district o f the first class by a certified public accountant, the
intermediate superintendent, or the auditor general of the city. A district or intermediate district shall retain
these records for the current fiscal year and from at least the 3 immediately preceding fiscal years.
(b) If a district operates in a single building with fewer than 700 full -time equated pupils, if the district has
stable membership, and if the error rate of the immediately preceding 2 pupil accounting field audits of the district
is less than 2%, the dis trict may have a pupil accounting field audit conducted biennially but must continue to
have desk audits for each pupil count. The auditor must document compliance with the audit cycle in the pupil
auditing manual. As used in this subdivision, “stable membership” means that the district’s membership for the
current fiscal year varies from the district ’s membership for the immediately preceding fiscal year by less than
5%.
(c) A district’s or intermediate district’s annual financial audit must include an analysis of the financial and
pupil accounting data used as the basis for distribution of state school aid.
(d) The pupil and financial accounting records and reports, audits, and management letters are subject to
requirements established in the auditing and accounting manuals approved and published by the department.
(e) All of the following must be done not later than November 1 each year for reporting the prior fiscal year
data:
(i) A district shall file the annual financial audit reports with the intermediate district and the department. If
the issuance of single audits is delayed for the 2024 -25 school year due to a late issuance of a Compliance
Supplement, the single audit portion of that audit must be filed within 30 days of the issuance of the Compliance
Supplement by OMB.
(ii) The intermediate district shall file the annual financial audit reports for the intermediate district with the
department. If the issuance of single audits is delayed for the 2024 -25 school year due to a late issuance of a
Compliance Supplement, the single audit portion of that audit must be filed within 30 days of the issuance of the
Compliance Supplement by OMB.
(iii) The intermediate district shall enter the pupil membership audit reports, known as the audit narrative,
for its constituent districts and for the intermediate district, for the pupil membership count day and
supplemental count day, in the Michigan student data system.
(f) The annual financial audit reports and pupil accounting procedures reports must be available to the public
in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(g) Not later than January 31 of each year, the department shall notify the state budget director and the
legislative appropriations subcommittees responsible for review of the school aid budget of districts and
intermediate districts that have not filed a n annual financial audit and pupil accounting procedures report
required under this section for the school year ending in the immediately preceding fiscal year.
(5) By the first business day in November of each fiscal year, each district and intermediate district shall
submit to the center, in a manner prescribed by the center, annual comprehensive financial data consistent with
the district’s or intermediate district’s audited financial statements and consistent with accounting manuals and
charts of accounts approved and published by the department. For an intermediate district, the report must also
contain the website address where the department can access the report required under section 620 of the revised
school code, MCL 380.620. The department shall ensure that the prescribed Michigan public school accounting
manual chart of accounts includes standard conventions to distinguish expenditures by allowable fund function
and object. The functions must include at minimum categories for instruction, pupil support, instructional staff
support, general administration, school administration, business administration, transportation, facilities
operation and maintenance , facilities acquisition, and debt service; and must include object classifications of
salary, benefits, including categories for active employee health expenditures, purchased services, supplies,
capital outlay, and other. A district shall report the required level of detail consistent with the manual as part of
the comprehensive annual financial report.
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(6) By the last business day in September of each year, each district and intermediate district shall file with
the center the special education actual cost report, known as “SE-4096”, on a form and in the manner prescribed
by the center. An intermediate district shall certify the audit of a district’s report.
(7) By not later than 1 week after the last business day in September of each year, each district and
intermediate district shall file with the center the audited transportation expenditure report, known as “SE-4094”,
on a form and in the manner prescribed by the center. An intermediate district shall certify the audit of a district’s
report.
(8) The department shall review its pupil accounting and pupil auditing manuals at least annually and shall
periodically update those manuals to reflect changes in this article. Any changes to the pupil accounting manual
that are applicable for the school year that begins after March 31 of a fiscal year must be published by not later
than March 31 of that fiscal year. However, if legislation is enacted that necessitates adjustments to the pupil
accounting manual after March 31 of a fiscal year, and a distri ct incurs a violation of the amended pupil
accounting manual in the subsequent fiscal year, the department must notify the district of that violation and
allow the district 30 days to correct the violation before the department is allowed to impose financi al penalties
under this act related to the violation.
(9) If a district that is a public school academy purchases property using money received under this article,
the public school academy shall retain ownership of the property unless the public school academy sells the
property at fair market value.
(10) If a district or intermediate district does not comply with subsections (4), (5), (6), (7), and (12), or if the
department determines that the financial data required under subsection (5) are not consistent with audited
financial statements, the department shall withhold all state school aid due to the district or intermediate district
under this article, beginning with the next payment due to the district or intermediate district, until the district
or intermediate district complies with subsections (4), (5), (6), (7), and (12). If the district or intermediate district
does not comply with subsections (4), (5), (6), (7), and (12) by the end of the fiscal year, the district or intermediate
district forfeits the amount withheld.
(11) If a district or intermediate district does not comply with subsection (2), the department may withhold up
to 10% of the total state school aid due to the district or intermediate district under this article, beginning with
the next payment due to the district or intermediate district, until the district or intermediate district complies
with subsection (2). If the district or intermediate district does not comply with subsection (2) by the end of the
fiscal year, the district or intermediate district forfeits the amount withheld.
(12) By November 1 of each year, if a district or intermediate district offers virtual learning under section 21f,
or for a school of excellence that is a cyber school, as defined in section 551 of the revised school code, MCL 380.551,
the district or inte rmediate district shall submit to the department a report that details the per -pupil costs of
operating the virtual learning by vendor type and virtual learning model. The report must include information
concerning the operation of virtual learning for the immediately preceding school fiscal year, including
information concerning summer programming. Information must be collected in a form and manner determined
by the department and must be collected in the most efficient manner possible to reduce the admini strative
burden on reporting entities.
(13) By March 31 of each year, the department shall submit to the house and senate appropriations
subcommittees on state school aid, the state budget director, and the house and senate fiscal agencies a report
summarizing the per-pupil costs by vendor type of virtual courses available under section 21f and virtual courses
provided by a school of excellence that is a cyber school, as defined in section 551 of the revised school code,
MCL 380.551.
(14) As used in subsections (12) and (13), “vendor type” means the following:
(a) Virtual courses provided by the Michigan Virtual University.
(b) Virtual courses provided by a school of excellence that is a cyber school, as defined in section 551 of the
revised school code, MCL 380.551.
(c) Virtual courses provided by third party vendors not affiliated with a public school in this state.
(d) Virtual courses created and offered by a district or intermediate district.
(15) An allocation to a district or another entity under this article is contingent upon the district ’s or entity’s
compliance with this section.
(16) The department shall annually submit to the senate and house subcommittees on school aid and to the
senate and house standing committees on education an itemized list of allocations under this article to any
association or consortium consisting of ass ociations in the immediately preceding fiscal year. The report must
detail the recipient or recipients, the amount allocated, and the purpose for which the funds were distributed.
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Sec. 18d. It is the intent of the legislature that, in any fiscal year that the target foundation allowance in
section 20 is increased, a district use a portion of the increase to make permanent increases to the compensation
of educators and staff within the district, with priority given to increasing starting salaries.

Sec. 19. (1) A district or intermediate district shall comply with all applicable reporting requirements specified
in state and federal law. Data provided to the center, in a form and manner prescribed by the center, must be
aggregated and disaggregated as required by state and federal law. In addition, a district or intermediate district
shall cooperate with all measures taken by the center to establish and maintain a statewide P -20 longitudinal
data system.
(2) Each district shall furnish to the center not later than 5 weeks after the pupil membership count day and
by the last business day in June of the school fiscal year ending in the fiscal year, in a manner prescribed by the
center, the information necess ary for the preparation of the district and high school graduation report,
information regarding completion of early middle college credentials obtained and postsecondary credits obtained
in any college acceleration program, and information necessary for t he preparation of the state and federal
accountability reports. This information must meet requirements established in the pupil auditing manual
approved and published by the department. The center shall calculate an annual graduation and pupil dropout
rate for each high school, each district, and this state, in compliance with nationally recognized standards for
these calculations. The center shall report all graduation and dropout rates to the senate and house education
committees and appropriations committees, the state budget director, and the department not later than 30 days
after the publication of the list described in subsection (5). Before reporting these graduation and dropout rates,
the department shall allow a school or district to appeal the ca lculations. The department shall consider and act
upon the appeal within 30 days after it is submitted and shall not report these graduation and dropout rates until
after all appeals have been considered and decided.
(3) By the first business day in December and by the last business day in June of each year, a district shall
furnish to the center, in a manner prescribed by the center, information related to educational personnel and
personnel vacancies as necessary for reporting required by state and federal law. For the purposes of this
subsection, the center shall only require districts and intermediate districts to report information that is not
already available from the office of retirement services in the department of technology, management, and budget.
(4) If a district or intermediate district fails to meet the requirements of this section, the department shall
withhold 5% of the total funds for which the district or intermediate district qualifies under this article until the
district or intermediate district complies with this section. If the district or intermediate district does not comply
with this section by the end of the fiscal year, the department shall place the amount withheld in an escrow
account until the district or intermediate district complies with this section.
(5) Before publishing a list of school or district accountability designations as required by the no child left
behind act of 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95, and utilizing data
that were certified as accurate and complete after districts and intermediate districts adhered to deadlines, data
quality reviews, and correction processes leading to local certification of final student data in subsection (2), the
department shall allow a school or district to appeal any calculation errors used in the preparation of
accountability metrics. The department shall consider and act upon the appeal within 30 days after it is submitted
and shall not publish the list until after all appeals have been considered and decided.
(6) The department shall implement statewide standard reporting requirements for education data approved
by the department in conjunction with the center. The department shall work with the center, intermediate
districts, districts, and other interested stakeholders to implement this policy change. A district or intermediate
district shall implement the statewide standard reporting requirements not later than 2017 -2018 or when a
district or intermediate district updates its education data reporting system, whichever is later.
(7) A district or intermediate district shall collect and submit to the center tribal affiliation data for all students
and staff and the identification of student participation in federal programs funded under 20 USC 7401 to 7546
and participation in fede ral programs funded under the Johnson -O’Malley Supplemental Indian Education
Program Modernization Act, Public Law 115-404. The data must be reported in a form and manner prescribed by
the center in consultation with the federally recognized Indian tribes in this state and the department in
adherence to the department’s tribal consultation policy. A district or intermediate district shall begin completion
of the reporting requirement under this subsection by not later than the 2024-2025 fiscal year.

Sec. 20. (1) For 2025-2026, the target foundation allowance is $10,050.00.
(2) The department shall calculate the amount of each district ’s foundation allowance as provided in this
section, using a target foundation allowance in the amount specified in subsection (1).
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(3) Except as otherwise provided in this section, the department shall calculate the amount of a district ’s
foundation allowance as follows, using in all calculations the total amount of the district ’s foundation allowance
as calculated before any proration:
(a) For a district that had a foundation allowance for the immediately preceding fiscal year that was equal to
the target foundation allowance for the immediately preceding fiscal year, the district receives a foundation
allowance in an amount equal to the target foundation allowance described in subsection (1) for the current fiscal
year.
(b) For a district that had a foundation allowance for the immediately preceding fiscal year that was greater
than the target foundation allowance for the immediately preceding fiscal year, the district’s foundation allowance
is an amount equal to the lesser of (the sum of the district ’s foundation allowance for the immediately preceding
fiscal year plus any per pupil amount calculated under section 20m(2) in the immediately preceding fiscal year
plus the increase in the target foundation allowance for the current fiscal year, as compared to the immediately
preceding fiscal year) or (the product of the district ’s foundation allowance for the immediately preceding fiscal
year times the percentage increase in the United States Consumer Price Index in the calendar year ending in the
immediately preceding fiscal year as reported by the May revenue estimating conferen ce conducted under
section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b).
(c) For a district that had a foundation allowance in the immediately preceding fiscal year that was less than
the target foundation allowance in effect for that fiscal year, the district ’s foundation allowance is an amount
equal to the lesser of (the sum of district ’s foundation allowance for the immediately preceding fiscal year plus
any per pupil amount calculated under section 20m(2) in the immediately preceding fiscal year plus the increase
in the target foundation allowance for the current fiscal year , as compared to the immediately preceding fiscal
year) or (the product of the district ’s foundation allowance for the immediately preceding fiscal year times the
percentage increase in the United States Consumer Price Index in the calendar year ending in the immediately
preceding fiscal year as reported by the May revenue estimating conferen ce conducted under section 367b of the
management and budget act, 1984 PA 431, MCL 18.1367b).
(d) For a district that has a foundation allowance that is not a whole dollar amount, the department shall
round the district’s foundation allowance up to the nearest whole dollar.
(4) Except as otherwise provided in this subsection, the state portion of a district’s foundation allowance is an
amount equal to the district’s foundation allowance or the target foundation allowance for the current fiscal year,
whichever is less, minus the local portion of the district ’s foundation allowance. Except as otherwise provided in
this subsection, for a district described in subsection (3)(b) and (c), the state portion of the district ’s foundation
allowance is an amount equal to the target foundation allowance minus the district ’s foundation allowance
supplemental payment per pupil calculated under section 20m and minus the local portion of the district ’s
foundation allowance. For a district that has a millage reduction required under section 31 of article IX of the
state constitution of 1963, the department shall calculate the state portion of the district ’s foundation allowance
as if that reduction did not occur. For a receiving district, if school operating taxes continue to be levied on behalf
of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations
of the dissolved district under section 12 of the revised school code, MCL 380.12, the taxable value per membership
pupil of property in the receiving district used for the purposes of this subsection does not include the taxable
value of property within the geographic area of the dissolved district. For a community district, if school operating
taxes continue to be levied by a qualifying school district under section 12b of the revised school code,
MCL 380.12b, with the same geographic area as the community district, the taxable value per membership pupil
of property in the community district to be used for the purposes of this subsection does not include the taxable
value of property within the geographic area of the community district.
(5) The allocation calculated under this section for a pupil is based on the foundation allowance of the pupil ’s
district of residence. For a pupil enrolled under section 105 or 105c in a district other than the pupil ’s district of
residence, the allocation calculated under this section is based on the lesser of the foundation allowance of the
pupil’s district of residence or the foundation allowance of the educating district. For a pupil in membership in a
K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil’s district of residence,
the allocation calculated under this section is based on the foundation allowance of the educating district if the
educating district ’s foundation allowance is greater than the foundation allowance of the pupil ’s district of
residence. The calculation under this subsection must take into account a district ’s per-pupil allocation under
section 20m.
(6) Except as otherwise provided in this subsection, for pupils in membership, other than special education
pupils, in a public school academy, the allocation calculated under this section is an amount per membership pupil
other than special education pupils in the public school academy equal to the target foundation allowance specified
in subsection (1), or, for a public school academy that was issued a contract under section 552 of the revised school
code, MCL 380.552, to operate as a school of excellence that is a cyber school, $10,050.00. Notwithstanding
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section 101, for a public school academy that begins operations after the pupil membership count day, the amount
per membership pupil calculated under this subsection must be adjusted by multiplying that amount per
membership pupil by the number of hours of pupil instruction provided by the public school academy after it
begins operations, as determined by the department, divided by the minimum number of hours of pupil instruction
required under section 101(3). The result of this calculation must not exceed the amount per membership pupil
otherwise calculated under this subsection.
(7) For pupils in membership, other than special education pupils, in a community district, the allocation
calculated under this section is an amount per membership pupil other than special education pupils in the
community district equal to the foundation allowance of the qualifying school district, as described in section 12b
of the revised school code, MCL 380.12b, that is located within the same geographic area as the community
district.
(8) Subject to subsection (4), for a district that is formed or reconfigured after June 1, 2002 by consolidation of
2 or more districts or by annexation, the resulting district ’s foundation allowance under this section beginning
after the effective date of the consolidation or annexation is the lesser of the sum of the average of the foundation
allowances of each of the original or affected districts, calculated as provided in th is section, weighted as to the
percentage of pupils in total membership in the resulting district who reside in the geographic area of each of the
original or affected districts plus $100.00 or the highest foundation allowance among the original or affected
districts. This subsection does not apply to a receiving district unless ther e is a subsequent consolidation or
annexation that affects the district. The calculation under this subsection must take into account a district’s per-
pupil allocation under section 20m.
(9) The department shall round each fraction used in making calculations under this section to the
fourth decimal place and shall round the dollar amount of an increase in the target foundation allowance to the
nearest whole dollar.
(10) State payments related to payment of the foundation allowance for a special education pupil are not
calculated under this section but are instead calculated under section 51e.
(11) To assist the legislature in determining the target foundation allowance for the subsequent fiscal year,
each revenue estimating conference conducted under section 367b of the management and budget act,
1984 PA 431, MCL 18.1367b, must calculate a pupil membership factor, a revenue adjustment factor, and an
index as follows:
(a) The pupil membership factor is computed by dividing the estimated membership in the school year ending
in the current fiscal year, excluding intermediate district membership, by the estimated membership for the
school year ending in the subsequent fisc al year, excluding intermediate district membership. If a consensus
membership factor is not determined at the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and senate subcommit tees responsible for school
aid appropriations not later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor is computed by dividing the sum of the estimated total state school aid fund
revenue for the subsequent fiscal year plus the estimated total state school aid fund revenue for the current fiscal
year, adjusted for any chang e in the rate or base of a tax the proceeds of which are deposited in that fund and
excluding money transferred into that fund from the countercyclical budget and economic stabilization fund under
the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated total school
aid fund revenue for the current fiscal year plus the estimated total state school aid fund revenue for the
immediately preceding fiscal year, adjusted for any change in the rate or base of a tax the procee ds of which are
deposited in that fund. If a consensus revenue factor is not determined at the revenue estimating conference, the
principals of the revenue estimating conference shall report their estimates to the house and senate
subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue
conference.
(c) The index is calculated by multiplying the pupil membership factor by the revenue adjustment factor. If a
consensus index is not determined at the revenue estimating conference, the principals of the revenue estimating
conference shall report their est imates to the house and senate subcommittees responsible for state school aid
appropriations not later than 7 days after the conclusion of the revenue conference.
(12) Payments to districts and public school academies are not made under this section. Rather, the
calculations under this section are used to determine the amount of state payments under section 22b.
(13) If an amendment to section 2 of article VIII of the state constitution of 1963 allowing state aid to some or
all nonpublic schools is approved by the voters of this state, each foundation allowance or per -pupil payment
calculation under this section may be reduced.
(14) As used in this section:
(a) “Certified mills” means the lesser of 18 mills or the number of mills of school operating taxes levied by the
district in 1993-94.
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(b) “Current fiscal year” means the fiscal year for which a particular calculation is made.
(c) “Dissolved district” means a district that loses its organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the revised school code, MCL 380.12.
(d) “Immediately preceding fiscal year” means the fiscal year immediately preceding the current fiscal year.
(e) “Local portion of the district ’s foundation allowance ” means an amount that is equal to the difference
between (the sum of the product of the taxable value per membership pupil of all property in the district that is
nonexempt property times the district ’s certified mills and, for a district with certified mills exceeding 12, the
product of the taxable value per membership pupil of property in the district that is commercial personal property
times the certified mills minus 12 mills) and (the quotient of the product of the captured assessed valuation under
tax increment financing acts times the district ’s certified mills divided by the district ’s membership excluding
special education pupils).
(f) “Membership” means the definition of that term under section 6 as in effect for the particular fiscal year for
which a particular calculation is made.
(g) “Nonexempt property” means property that is not a principal residence, qualified agricultural property,
qualified forest property, supportive housing property, industrial personal property, commercial personal
property, or property occupied by a public school academy.
(h) “Principal residence ”, “qualified agricultural property ”, “qualified forest property ”, “supportive housing
property”, “industrial personal property ”, and “commercial personal property ” mean those terms as defined in
section 1211 of the revised school code, MCL 380.1211.
(i) “Receiving district” means a district to which all or part of the territory of a dissolved district is attached
under section 12 of the revised school code, MCL 380.12.
(j) “School operating purposes” means the purposes included in the operation costs of the district as prescribed
in sections 7 and 18 and purposes authorized under section 1211 of the revised school code, MCL 380.1211.
(k) “School operating taxes ” means local ad valorem property taxes levied under section 1211 of the revised
school code, MCL 380.1211, and retained for school operating purposes.
(l) “Tax increment financing acts ” means parts 2, 3, 4, and 6 of the recodified tax increment financing act,
2018 PA 57, MCL 125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield redevelopment financing act,
1996 PA 381, MCL 125.2651 to 125.2670.
(m) “Taxable value per membership pupil ” means taxable value, as certified by the county treasurer and
reported to the department, for the calendar year ending in the current state fiscal year divided by the district ’s
membership excluding special education pupils for the school year ending in the current state fiscal year.

Sec. 20d. In making the final determination required under former section 20a of a district ’s combined state
and local revenue per membership pupil in 1993 -94 and in making calculations under section 20 for 2025 -2026,
the department and the department of treasury shall comply with all of the following:
(a) For a district that had combined state and local revenue per membership pupil in the 1994 -95 fiscal year
of $6,500.00 or more and served as a fiscal agent for a state board designated area vocational education center in
the 1993-94 school year, total state school aid received by or paid on behalf of the district under this act in 1993-94
excludes payments made under former section 146 and under section 147 on behalf of the district ’s employees
who provided direct services to the area vocational education center. Not later than June 30, 1996, the department
shall make an adjustment under this subdivision to the district ’s combined state and local revenue per
membership pupil in the 1994-95 fiscal year and the department of treasury shall make a final certification of the
number of mills that may be levied by the district under section 1211 of the revised school code, MCL 380.1211,
as a result of the adjustment under this subdivision.
(b) If a district had an adjustment made to its 1993 -94 total state school aid that excluded payments made
under former section 146 and under section 147 on behalf of the district’s employees who provided direct services
for intermediate district center programs operated by the district under former section 51 and sections 51a to 56,
if nonresident pupils attending the center programs were included in the district ’s membership for purposes of
calculating the combined state and local revenue per membership p upil for 1993 -94, and if there is a signed
agreement by all constituent districts of the intermediate district agreeing to an adjustment under this
subdivision, the department shall calculate the foundation allowances for 1995-96 and 1996-97 of all districts that
had pupils attending the intermediate district center program operated by the district that had the adjustment
as if their combined state and local revenue per membership pupil for 1993-94 included resident pupils attending
the center program and excluded nonresident pupils attending the center program.

Sec. 21f. (1) A primary district shall enroll an eligible pupil in virtual courses in accordance with the provisions
of this section. A primary district shall not offer a virtual course to an eligible pupil unless the virtual course is
published in the primary district’s catalog of board-approved courses or in the statewide catalog of virtual courses
maintained by the Michigan Virtual University pursuant to section 98. The primary district shall also provide on
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its publicly accessible website a link to the statewide catalog of virtual courses maintained by the Michigan Virtual
University. Unless the pupil is at least age 18 or is an emancipated minor, a pupil must not be enrolled in a course
that meets virtually without the consent of the pupil’s parent or legal guardian.
(2) Subject to subsection (3), a primary district shall enroll an eligible pupil in up to 2 virtual courses as
requested by the pupil during an academic term, semester, or trimester.
(3) A pupil may be enrolled in more than 2 virtual courses in a specific academic term, semester, or trimester
if both of the following conditions are met:
(a) The primary district has determined that it is in the best interest of the pupil.
(b) The pupil agrees with the recommendation of the primary district.
(4) If the number of applicants eligible for acceptance in a virtual course does not exceed the capacity of the
provider to provide the virtual course, the provider shall accept for enrollment all of the applicants eligible for
acceptance. If the number of applicants exceeds the provider’s capacity to provide the virtual course, the provider
shall use a random draw system, subject to the need to abide by state and federal antidiscrimination laws and
court orders. A primary district that is also a provider shall determine whether or not it has the capacity to accept
applications for enrollment from nonresident applicants in virtual courses and may use that limit as the reason
for refusal to enroll a nonresident applicant.
(5) A primary district may not establish additional requirements beyond those specified in this subsection that
would prohibit a pupil from taking a virtual course. A pupil ’s primary district may deny the pupil enrollment in
a virtual course if any of the following apply, as determined by the district:
(a) The pupil is enrolled in any of grades K to 5.
(b) The pupil has previously gained the credits that would be provided from the completion of the virtual
course.
(c) The virtual course is not capable of generating academic credit.
(d) The virtual course is inconsistent with the remaining graduation requirements or career interests of the
pupil.
(e) The pupil has not completed the prerequisite coursework for the requested virtual course or has not
demonstrated proficiency in the prerequisite course content.
(f) The pupil has failed a previous virtual course in the same subject during the 2 most recent academic years.
(g) The virtual course is of insufficient quality or rigor. A primary district that denies a pupil enrollment
request for this reason shall enroll the pupil in a virtual course in the same or a similar subject that the primary
district determines is of acceptable rigor and quality.
(h) The cost of the virtual course exceeds the amount identified in subsection (10), unless the pupil or the
pupil’s parent or legal guardian agrees to pay the cost that exceeds this amount.
(i) The request for a virtual course enrollment did not occur within the same timelines established by the
primary district for enrollment and schedule changes for regular courses.
(j) The request for a virtual course enrollment was not made in the academic term, semester, trimester, or
summer preceding the enrollment. This subdivision does not apply to a request made by a pupil who is newly
enrolled in the primary district.
(6) If a pupil is denied enrollment in a virtual course by the pupil’s primary district, the primary district shall
provide written notification to the pupil of the denial, the reason or reasons for the denial under subsection (5),
and a description of the appeal process. The pupil may appeal the denial by submitting a lett er to the
superintendent of the intermediate district in which the pupil ’s primary district is located. The letter of appeal
must include the reason provided by the primary district for not enrolling the pupil and the reason why the pupil
is claiming that the enrollment should be approved. The intermediate district superintendent or designee shall
respond to the appeal within 5 days after it is received. If the intermediate district superi ntendent or designee
determines that the denial of enrollment does not meet 1 or more of the reasons specified in subsection (5), the
primary district shall enroll the pupil in the virtual course.
(7) To provide a virtual course to an eligible pupil under this section, a provider must do all of the following:
(a) Ensure that the virtual course has been published in the pupil’s primary district’s catalog of board-approved
courses or published in the statewide catalog of virtual courses maintained by the Michigan Virtual University.
(b) Assign to each pupil a teacher of record and provide the primary district with the personnel identification
code assigned by the center for the teacher of record. If the provider is a community college, the virtual course
must be taught by an instructor employed by or contracted through the providing community college.
(c) Offer the virtual course on an open entry and exit method, or aligned to a semester, trimester, or accelerated
academic term format.
(d) If the virtual course is offered to eligible pupils in more than 1 district, the following additional
requirements must also be met:
(i) Provide the Michigan Virtual University with a course syllabus that meets the definition under
subsection (14)(g) in a form and manner prescribed by the Michigan Virtual University for inclusion in a statewide
catalog of virtual courses.
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(ii) Not later than October 1 of each fiscal year, provide the Michigan Virtual University with an aggregated
count of enrollments for each virtual course the provider delivered to pupils under this section during the
immediately preceding school year, and the number of enrollments in which the pupil earned 60% or more of the
total course points for each virtual course.
(8) To provide a virtual course under this section, a community college shall ensure that each virtual course it
provides under this section generates postsecondary credit.
(9) For any virtual course a pupil enrolls in under this section, the pupil’s primary district must assign to the
pupil a mentor and shall supply the provider with the mentor’s contact information.
(10) For a pupil enrolled in 1 or more virtual courses, the primary district shall use foundation allowance or
per-pupil funds calculated under section 20 to pay for the expenses associated with the virtual course or courses.
A primary district is not required to pay toward the cost of a virtual course an amount that exceeds 6.67% of the
target foundation allowance for the current fiscal year as calculated under section 20.
(11) A virtual learning pupil has the same rights and access to technology in the pupil ’s primary district ’s
school facilities as all other pupils enrolled in the pupil ’s primary district. The department shall establish
standards for hardware, software, and internet access for pupils who are enrolled in more than 2 virtual courses
under this section in an academic term, semester, or trimester taken at a location other than a school facility.
(12) If a pupil successfully completes a virtual course, as determined by the pupil’s primary district, the pupil’s
primary district shall grant appropriate academic credit for completion of the course and shall count that credit
toward completion of graduation and subject area requirements. A pupil ’s school record and transcript must
identify the virtual course title as it appears in the virtual course syllabus.
(13) The enrollment of a pupil in 1 or more virtual courses must not result in a pupil being counted as more
than 1.0 full -time equivalent pupils under this article. The minimum requirements to count the pupil in
membership are those established by the pup il accounting manual as it was in effect for the 2015 -2016 school
year or as subsequently amended by the department if the department notifies the legislature about the proposed
amendment at least 60 days before the amendment becomes effective.
(14) As used in this section:
(a) “Instructor” means an individual who is employed by or contracted through a community college.
(b) “Mentor” means a professional employee of the primary district who monitors the pupil’s progress, ensures
the pupil has access to needed technology, is available for assistance, and ensures access to the teacher of record.
A mentor may also serve as the teacher of record if the primary district is the provider for the virtual course and
the mentor meets the requirements under subdivision (e).
(c) “Primary district” means the district that enrolls the pupil and reports the pupil for pupil membership
purposes.
(d) “Provider” means the district, intermediate district, community college, or other third -party vendor that
the primary district pays to provide the virtual course or the Michigan Virtual University if it is providing the
virtual course.
(e) “Teacher of record” means a teacher who meets all of the following:
(i) Is appropriately placed under a valid Michigan teaching certificate or a teaching permit, authorization, or
approval issued by the department. As used in this subparagraph, “appropriately placed” means holding a valid
Michigan educator credential with the required grade range and discipline or subject area for the assignment, as
defined by the superintendent of public instruction.
(ii) Is responsible for providing instruction, determining instructional methods for each pupil, diagnosing
learning needs, assessing pupil learning, prescribing intervention strategies and modifying lessons, reporting
outcomes, and evaluating the effects of instruction and support strategies.
(iii) Has a personnel identification code provided by the center.
(iv) If the provider is a community college, is an instructor employed by or contracted through the providing
community college.
(f) “Virtual course” means a course of study that is capable of generating a credit or a grade and that is provided
in an interactive learning environment where any portion of the curriculum is delivered using the internet and
in which pupils may be separated from their instructor or teacher of record by time or location, or both.
(g) “Virtual course syllabus” means a document that includes all of the following:
(i) An alignment document detailing how the course meets applicable state standards or, if the state does not
have state standards, nationally recognized standards.
(ii) The virtual course content outline.
(iii) The virtual course required assessments.
(iv) The virtual course prerequisites.
(v) Expectations for actual instructor or teacher of record contact time with the virtual learning pupil and
other communications between a pupil and the instructor or teacher of record.
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(vi) Academic support available to the virtual learning pupil.
(vii) The virtual course learning outcomes and objectives.
(viii) The name of the institution or organization providing the virtual content.
(ix) The name of the institution or organization providing the instructor or teacher of record.
(x) The course titles assigned by the provider and the course titles and course codes from the National Center
for Education Statistics (NCES) school codes for the exchange of data (SCED).
(xi) The number of eligible pupils that will be accepted by the provider in the virtual course. A primary district
that is also the provider may limit the enrollment to those pupils enrolled in the primary district.
(xii) The results of the virtual course quality review using the guidelines and model review process published
by the Michigan Virtual University.
(h) “Virtual learning pupil” means a pupil enrolled in 1 or more virtual courses.

Sec. 21h. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is
allocated $6,137,400.00 for 2025 -2026 for assisting districts assigned by the superintendent to participate in a
partnership district agreement to improve student achievement and district financial stability. It is the intent of
the legislature that the appropriation in this section will be funded with state school aid pupil support reserve
fund money through 2027-2028. The superintendent shall identify any conditions that may be contributing to low
academic performance within a district being considered for assignment to a partnership district agreement. The
purpose of the partnership district agreement is to identify district needs, develop intervention plans, and partner
with public, private, and nonprofit organizations to coordinate resources and improve student achievement.
Assignment of a district to a partnership district agreement is made by the superintendent.
(2) A district described in subsection (1) is eligible for funding under this section if the district includes at least
1 school that has been identified as low performing under the approved federal accountability system. A district
described in this subsection must do all of the following to be eligible for funding under this section:
(a) Within 90 days of assignment to the partnership district agreement described in this section, complete a
comprehensive needs assessment or evaluation in collaboration with an intermediate district, community
members, education organizations, and postsecondary institutions, as applicable, that is approve d by the
superintendent. The comprehensive needs assessment or evaluation must include at least all of the following:
(i) A review of the district’s implementation and utilization of a multi-tiered system of supports to ensure that
it is used to appropriately inform instruction.
(ii) A review of the district and school building leadership and educator capacity to substantially improve
student outcomes.
(iii) A review of classroom, instructional, and operational practices and curriculum to ensure alignment with
research-based instructional practices and state curriculum standards.
(b) Develop a district continuous improvement plan that has been approved by the superintendent and that
addresses the needs identified in the comprehensive needs assessment or evaluation completed under
subdivision (a). The district continuous improvement plan must include at least all of the following:
(i) Specific actions that will be taken by the district and each of its partners to improve student achievement.
(ii) Specific measurable benchmarks that will be met within 18 months to improve student achievement and
identification of expected student achievement outcomes to be attained within 3 years after assignment to the
partnership.
(iii) Measurable benchmarks that put pupils on track to meet or exceed grade level proficiency, increase high
school graduation rates, reduce class sizes in grades K to 3, and improve attendance rates.
(c) Provide access to training for district leadership, including, but not limited to, the superintendent or chief
administrator and school board or board of directors members, on areas of education fiscal and policy matters.
The department may require tra ining for district leadership and all board members under this subdivision at a
rate and frequency needed to support measurable academic outcomes for the district.
(3) Upon approval of the district continuous improvement plan developed under subsection (2), the department
shall assign a team of individuals with expertise in comprehensive school and district reform to partner with the
district, the intermediate distri ct, community organizations, education organizations, and postsecondary
institutions identified in the academic and financial operating or intervention plan to review the district ’s use of
existing financial resources to ensure that those resources are being used as efficiently and effectively as possible
to improve student academic achievement and to ensure district financial stability. The superintendent of public
instruction may waive burdensome administrative rules for a partnership district for the dur ation of the
partnership district agreement.
(4) Funds allocated under this section, excluding funds allocated under subsection (5), may be used to pay for
district expenditures approved by the superintendent to improve student achievement. Funds may be used for
professional development for teachers or district or school leadership, increased instructional time, teacher
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mentors, literacy, numeracy, reducing K -3 class sizes, reducing chronic absenteeism, or other expenditures that
directly impact student achievement and cannot be paid from existing district financial resources.
Notwithstanding section 17b, the department s hall make payments to districts under this section on a schedule
determined by the department.
(5) From the funds allocated under subsection (1), there is allocated for 2025 -2026 an amount not to exceed
$137,400.00 for the purchase of a data analytics tool to be used by districts described in subsection (1). The
superintendent of public instruction shall require districts described in subsection (1) to purchase a data analytics
tool funded under this subsection as part of the agreements described in this section.
(6) The department shall annually report to the legislature on the activities funded under this section and how
those activities impacted student achievement in districts that received funds under this section. To the extent
possible, participating districts receiving funding under this section shall participate in the report.
(7) In addition to the allocation under subsection (1), from the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $36,000,000.00 to districts described in subsection (1) for
2023-2024 only for supplemental funding to be used by districts for the purposes of this section in equal
installments of $12,000,000.00 in each of the fiscal years 2023-2024, 2024-2025, and 2025-2026. The funds
allocated under this subsection for 2023-2024 are a work project appropriati on, and any unexpended funds for
2023-2024 are carried forward into 2024-2025. The purpose of the work project is to provide assistance to districts
eligible for funding under this section. The estimated completion date of the work project described in this
subsection is September 30, 2026.

Sec. 22a. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $3,927,000,000.00 for 2024 -2025 and there is allocated an amount not to exceed $3,785,000,000.00
for 2025-2026 for payments to distric ts and qualifying public school academies to guarantee each district and
qualifying public school academy an amount equal to its 1994-95 total state and local per-pupil revenue for school
operating purposes under section 11 of article IX of the state constitution of 1963. Pursuant to section 11 of article
IX of the state constitution of 1963, this guarantee does not apply to a district in a year in which the district levies
a millage rate for school district operating purposes less than it levied in 1994. However, subsection (2) applies to
calculating the payments under this section. Funds allocated under this section that are not expended in the fiscal
year for which they were allocated, as determined by the department, may be used to supplement the allocations
under sections 22b and 51c to fully fund those allocations for the same fiscal year.
(2) To ensure that a district receives an amount equal to the district ’s 1994-95 total state and local per -pupil
revenue for school operating purposes, there is allocated to each district a state portion of the district ’s 1994-95
foundation allowance in an amount calculated as follows:
(a) Except as otherwise provided in this subsection, the state portion of a district ’s 1994 -95 foundation
allowance is an amount equal to the district’s 1994-95 foundation allowance or $6,500.00, whichever is less, minus
the difference between the sum of the product of the taxable value per membership pupil of all property in the
district that is nonexempt property times the district ’s certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial
personal property times the certified mills minus 12 mills and the quotient of the ad valorem property tax revenue
of the district captured under tax increment financing acts divided by the district ’s membership. For a district
that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the
department shall calculate the state portion of the district ’s foundation allowance as if that reduction did not
occur. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has
been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under
section 12 of the revised school code, MCL 380.12, taxable value per membership pupil of all property in the
receiving district that is nonexempt property and taxable value per membership pupil of property in the receiving
district that is commercial personal property do not include property within the geographic area of the dissolved
district; ad valorem property tax revenue of the receiving district captured under tax increment financing acts
does not include ad valorem property tax revenue captured within the geographic boundari es of the dissolved
district under tax increment financing acts; and certified mills do not include the certified mills of the dissolved
district. For a community district, the department shall reduce the allocation as otherwise calculated under this
section by an amount equal to the amount of local school operating tax revenue that would otherwise be due to
the community district if not for the operation of section 386 of the revised school code, MCL 380.386, and the
amount of this reduction is offset by the increase in funding under section 22b(2).
(b) For a district that had a 1994 -95 foundation allowance greater than $6,500.00, the state payment under
this subsection is the sum of the amount calculated under subdivision (a) plus the amount calculated under this
subdivision. The amount calculated under this subdivision must be equal to the difference between the district ’s
1994-95 foundation allowance minus $6,500.00 and the current year hold harmless school operating taxes per
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pupil. If the result of the calculation under subdivision (a) is negative, the negative amount is an offset against
any state payment calculated under this subdivision. If the result of a calculation under this subdivision is
negative, there is not a state payment or a deduction under this subdivision. The taxable values per membership
pupil used in the calculations under this subdivision are as adjusted by ad valorem property tax revenue captured
under tax increment financing acts divided by the district ’s membership. For a receiving district, if school
operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the
receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code,
MCL 380.12, ad valorem property tax revenue captured under tax increment financing acts do not include ad
valorem property tax revenue captured within the geographic boundaries of the dissolved district under tax
increment financing acts.
(3) For pupils in membership in a qualifying public school academy, there is allocated under this section to the
authorizing body that is the fiscal agent for the qualifying public school academy for forwarding to the qualifying
public school academy an amount equal to the 1994-95 per-pupil payment to the qualifying public school academy
under section 20.
(4) A district or qualifying public school academy may use funds allocated under this section in conjunction
with any federal funds for which the district or qualifying public school academy otherwise would be eligible.
(5) Except as otherwise provided in this subsection, for a district that is formed or reconfigured after
June 1, 2000 by consolidation of 2 or more districts or by annexation, the resulting district ’s 1994-95 foundation
allowance under this section beginning after the effective date of the consolidation or annexation is the average
of the 1994 -95 foundation allowances of each of the original or affected districts, calculated as provided in this
section, weighted as to the percentage of pupils in total membe rship in the resulting district in the fiscal year in
which the consolidation takes place who reside in the geographic area of each of the original districts. If an affected
district’s 1994-95 foundation allowance is less than the 1994 -95 basic foundation allowance, the amount of that
district’s 1994-95 foundation allowance is considered for the purpose of calculations under this subsection to be
equal to the amount of the 1994 -95 basic foundation allowance. This subsection does not apply to a receiving
district unless there is a subsequent consolidation or annexation that affects the district.
(6) Payments under this section are subject to section 25g.
(7) As used in this section:
(a) “1994-95 foundation allowance ” means a district’s 1994-95 foundation allowance calculated and certified
by the department of treasury or the superintendent under former section 20a as enacted in 1993 PA 336 and as
amended by 1994 PA 283.
(b) “Certified mills” means the lesser of 18 mills or the number of mills of school operating taxes levied by the
district in 1993-94.
(c) “Current fiscal year” means the fiscal year for which a particular calculation is made.
(d) “Current year hold harmless school operating taxes per pupil ” means the per-pupil revenue generated by
multiplying a district’s 1994-95 hold harmless millage by the district’s current year taxable value per membership
pupil. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has
been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under
section 12 of the revised school code, MCL 380.12, taxable value per membership pupil does not include the taxable
value of property within the geographic area of the dissolved district.
(e) “Dissolved district” means a district that loses its organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the revised school code, MCL 380.12.
(f) “Hold harmless millage” means, for a district with a 1994-95 foundation allowance greater than $6,500.00,
the number of mills by which the exemption from the levy of school operating taxes on a principal residence,
qualified agricultural property, qualified forest property, supp ortive housing property, industrial personal
property, commercial personal property, and property occupied by a public school academy could be reduced as
provided in section 1211 of the revised school code, MCL 380.1211, and the number of mills of school operating
taxes that could be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211,
as certified by the department of treasury for the 1994 tax year. For a receiving district, if school operating taxes
are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district
to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, school
operating taxes do not include school operating taxes levied within the geographic area of the dissolved district.
(g) “Membership” means the definition of that term under section 6 as in effect for the particular fiscal year
for which a particular calculation is made.
(h) “Nonexempt property” means property that is not a principal residence, qualified agricultural property,
qualified forest property, supportive housing property, industrial personal property, commercial personal
property, or property occupied by a public school academy.
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(i) “Principal residence ”, “qualified agricultural property ”, “qualified forest property ”, “supportive housing
property”, “industrial personal property ”, and “commercial personal property ” mean those terms as defined in
section 1211 of the revised school code, MCL 380.1211.
(j) “Qualifying public school academy ” means a public school academy that was in operation in the 1994 -95
school year and is in operation in the current fiscal year.
(k) “Receiving district” means a district to which all or part of the territory of a dissolved district is attached
under section 12 of the revised school code, MCL 380.12.
(l) “School operating taxes ” means local ad valorem property taxes levied under section 1211 of the revised
school code, MCL 380.1211, and retained for school operating purposes as defined in section 20.
(m) “Tax increment financing acts ” means parts 2, 3, 4, and 6 of the recodified tax increment financing act,
2018 PA 57, MCL 125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield redevelopment financing act,
1996 PA 381, MCL 125.2651 to 125.2670.
(n) “Taxable value per membership pupil” means each of the following divided by the district’s membership:
(i) For the number of mills by which the exemption from the levy of school operating taxes on a principal
residence, qualified agricultural property, qualified forest property, supportive housing property, industrial
personal property, commercial personal pr operty, and property occupied by a public school academy may be
reduced as provided in section 1211 of the revised school code, MCL 380.1211, the taxable value of principal
residence, qualified agricultural property, qualified forest property, supportive housing property, industrial
personal property, commercial personal property, and property occupied by a public school academy for the
calendar year ending in the current fiscal year. For a receiving district, if school operating taxes are to be levied
on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt
obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, mills do not include
mills within the geographic area of the dissolved district.
(ii) For the number of mills of school operating taxes that may be levied on all property as provided in
section 1211(2) of the revised school code, MCL 380.1211, the taxable value of all property for the calendar year
ending in the current fiscal year. For a receiving district, if school operating taxes are to be levied on behalf of a
dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of
the dissolved district under section 12 of the revised school code, MCL 380.12, school operating taxes do not
include school operating taxes levied within the geographic area of the dissolved district.

Sec. 22b. (1) Except as otherwise provided in this section, for discretionary nonmandated payments to districts
under this section, there is allocated for 2024 -2025 an amount not to exceed $6,220,000,000.00 from the state
school aid fund and general fund a ppropriations in section 11 and an amount not to exceed $41,000,000.00 from
the community district education trust fund appropriation in section 11, and there is allocated for 2025 -2026 an
amount not to exceed $6,696,500,000.00 from the state school aid fu nd and general fund appropriations in
section 11. In addition, there is allocated for 2025 -2026 only an amount not to exceed $124,000,000.00 from the
state school aid fund appropriation in section 11. For 2024 -2025, the amount necessary, estimated at
$77,700,000.00, must be deposited from the general fund into the state school aid fund to reimburse the state
school aid fund for community district education trust fund costs in excess of $41,000,000.00, as required under
section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262. For 2024-2025 only, if the amount allocated
under this subsection from the community district education trust fund appropriation under section 11 is
insufficient to pay for an increase under this section, any amount exceeding that allocation may be paid from
other allocations under this subsection. Except for money allocated under this section from the community district
education trust fund appropriation in section 11, funds allocated under this section that are not expended i n the
fiscal year for which they were allocated, as determined by the department, may be used to supplement the
allocations under sections 22a and 51c to fully fund those allocations for the same fiscal year.
(2) Subject to subsection (3) and section 296, the allocation to a district under this section is an amount equal
to the sum of the amounts calculated under sections 20, 20m, 51a(2), 51a(3), 51a(11), and 51e, minus the sum of
the allocations to the distric t under sections 22a and 51c. For a community district, the allocation as otherwise
calculated under this section is increased by an amount equal to the amount of local school operating tax revenue
that would otherwise be due to the community district if not for the operation of section 386 of the revised school
code, MCL 380.386, to offset the absence of local school operating revenue in a community district in the funding
of the state portion of the foundation allowance under section 20(4), and, for 2024 -2025 only, this increase must
be paid from the community district education trust fund allocation in subsection (1).
(3) To receive an allocation under subsection (1), each district must do all of the following:
(a) Comply with section 1280b of the revised school code, MCL 380.1280b.
(b) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 380.1278b.
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(c) Furnish data and other information required by state and federal law to the center and the department in
the form and manner specified by the center or the department, as applicable.
(d) Comply with section 1230g of the revised school code, MCL 380.1230g.
(e) Comply with section 21f.
(f) For a district that has entered into a partnership district agreement with the department, comply with
section 22p.
(4) Districts are encouraged to use funds allocated under this section for the purchase and support of payroll,
human resources, and other business function software that is compatible with that of the intermediate district
in which the district is located and with other districts located within that intermediate district.
(5) From the allocation in subsection (1), the department shall pay up to $1,000,000.00 in litigation costs
incurred by this state related to commercial or industrial property tax appeals, including, but not limited to,
appeals of classification, that impact revenues dedicated to the state school aid fund.
(6) From the allocation in subsection (1), the department shall pay up to $1,000,000.00 in litigation costs
incurred by this state associated with lawsuits filed by 1 or more districts or intermediate districts against this
state. If the allocation under this section is insufficient to fully fund all payments required under this section, the
payments under this subsection must be made in full before any proration of remaining payments under this
section.
(7) It is the intent of the legislature that all constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, 51c, 51e, and 152a. If a claim is made by an entity receiving funds under this article
that challenges the legisl ative determination of the adequacy of this funding or alleges that there exists an
unfunded constitutional requirement, the state budget director may escrow or allocate from the discretionary
funds for nonmandated payments under this section the amount as may be necessary to satisfy the claim before
making any payments to districts under subsection (2). If funds are escrowed, the escrowed funds are a work
project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work
project is to provide for any payments that may be awarded to districts as a result of litigation. The work project
is completed upon resolution of the litigation.
(8) If the local claims review board or a court of competent jurisdiction makes a final determination that this
state is in violation of section 29 of article IX of the state constitution of 1963 regarding state payments to districts,
the state budget director shall use work project funds under subsection (7) or allocate from the discretionary funds
for nonmandated payments under this section the amount as may be necessary to satisfy the amount owed to
districts before making any payments to districts under subsection (2).
(9) If a claim is made in court that challenges the legislative determination of the adequacy of funding for this
state’s constitutional obligations or alleges that there exists an unfunded constitutional requirement, any
interested party may seek an expedited review of the claim by the local claims review board. If the claim exceeds
$10,000,000.00, this state may remove th e action to the court of appeals, and the court of appeals has and shall
exercise jurisdiction over the claim.
(10) If payments resulting from a final determination by the local claims review board or a court of competent
jurisdiction that there has been a violation of section 29 of article IX of the state constitution of 1963 exceed the
amount allocated for discre tionary nonmandated payments under this section, the legislature shall provide for
adequate funding for this state’s constitutional obligations at its next legislative session.
(11) If a lawsuit challenging payments made to districts related to costs reimbursed by federal title XIX
Medicaid funds is filed against this state, then, for the purpose of addressing potential liability under such a
lawsuit, the state budget director may place funds allocated under this section in escrow or allocate money from
the funds otherwise allocated under this section, up to a maximum of 50% of the amount allocated in subsection
(1). If funds are placed in escrow under this subsection, those funds are a work project appropriation and the
funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any
payments that may be awarded to districts as a result of the litigation. The work project is completed upon
resolution of the litigation. In addition, this state reserves the right to terminate future federal title XIX Medicaid
reimbursement payments to districts if the amount or allocation of reimbursed funds is challenged in the lawsuit.
As used in this subsection, “title XIX” means title XIX of the social security act, 42 USC 1396 to 1396w-6.
(12) As used in this section:
(a) “Dissolved district” means that term as defined in section 20.
(b) “Local school operating revenue ” means school operating taxes levied under section 1211 of the revised
school code, MCL 380.1211. For a receiving district, if school operating taxes are to be levied on behalf of a
dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of
the dissolved district under section 12 of the revised school code, MCL 380.12, local school operating revenue does
not include school operating taxes levied within the geographic area of the dissolved district.
(c) “Receiving district” and “school operating taxes” mean those terms as defined in section 20.
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Sec. 22d. (1) From the state school aid fund money appropriated under section 11, an amount not to exceed
$12,873,100.00 is allocated for 2025-2026 for supplemental payments to rural districts under this section.
(2) From the allocation under subsection (1), there is allocated for 2025 -2026 an amount not to exceed
$3,906,200.00 for payments under this subsection to eligible districts. A district that meets all of the following is
an eligible district under this subsection:
(a) Operates grades K to 12.
(b) Has fewer than 250 pupils in membership.
(c) Each school building operated by the district meets at least 1 of the following:
(i) Is located in the Upper Peninsula at least 30 miles from any other public school building.
(ii) Is located on an island that is not accessible by bridge.
(3) The amount of the additional funding to each eligible district under subsection (2) is determined under a
spending plan developed as provided in this subsection and approved by the superintendent of public instruction.
The spending plan must be developed cooperatively by the intermedi ate superintendents of each intermediate
district in which an eligible district is located. The intermediate superintendents shall review the financial
situation of each eligible district, determine the minimum essential financial needs of each eligible di strict, and
develop and agree on a spending plan that distributes the available funding under subsection (2) to the eligible
districts based on those financial needs. The intermediate superintendents shall submit the spending plan to the
superintendent of public instruction for approval. Upon approval by the superintendent of public instruction, the
amounts specified for each eligible district under the spending plan are allocated under subsection (2) and must
be paid to the eligible districts in the same manner as payments under section 22b.
(4) Subject to subsection (7), from the allocation in subsection (1), there is allocated for 2025 -2026 an amount
not to exceed $8,412,100.00 for payments under this subsection to districts that have fewer than 10.0 pupils per
square mile, as determined by the department, or that have greater than 250 square miles.
(5) The funds allocated under subsection (4) are allocated as follows:
(a) An amount equal to $6,373,700.00 is allocated to districts with fewer than 8.0 pupils per square mile, as
determined by the department, on an equal per-pupil basis.
(b) The balance of the funding under subsection (4) is allocated as follows:
(i) For districts with at least 8.0 but fewer than 9.0 pupils per square mile, as determined by the department,
the allocation is an amount per pupil equal to 75% of the per -pupil amount allocated to districts under
subdivision (a).
(ii) For districts with at least 9.0 but fewer than 10.0 pupils per square mile, as determined by the department,
the allocation is an amount per pupil equal to 50% of the per -pupil amount allocated to districts under
subdivision (a).
(iii) For districts that have greater than 250 square miles, have at least 10.0 pupils per square mile, and do
not receive funding under subsection (2), as determined by the department, the allocation is an amount per pupil
equal to 100% of the per-pupil amount allocated to districts under subdivision (a).
(c) If the total funding allocated under subdivision (b) is insufficient to fully fund payments as calculated under
that subdivision, the department shall prorate payments to districts under subdivision (b) on an equal per -pupil
basis. If funding allocated under subdivision (b) remains unallocated after making calculations under that
subdivision, the department may provide the remaining unallocated funding on an equal per -pupil basis to
districts receiving funding under subdivision (b)(i) and (ii).
(6) Subject to subsection (7), from the allocation under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $554,800.00 for payments under this subsection to districts where each school building
operated by the district is located on an island that is accessible by bridge.
(7) A district receiving funds allocated under subsection (2) is not eligible for funding allocated under
subsection (4) or (6). A district receiving funds allocated under subsection (6) is not eligible for funding under
subsection (2) or (4).

Sec. 22k. (1) The school transportation fund is created as a separate account within the state school aid fund
for the purpose of supporting district transportation costs.
(2) The state treasurer may receive money or other assets from any source for deposit into the school
transportation fund. The state treasurer shall direct the investment of the school transportation fund. The state
treasurer shall credit to the school tra nsportation fund interest and earnings from school transportation fund
investments.
(3) Money in the school transportation fund at the close of the fiscal year remains in the school transportation
fund and does not lapse to the state school aid fund or the general fund.
(4) The department of treasury is the administrator of the school transportation fund for auditing purposes.
(5) Money available in the school transportation fund must not be expended without a specific appropriation.
(6) For the fiscal year ending September 30, 2026 only, $130,000,000.00 from the state school aid fund must
be deposited into the school transportation fund.
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Sec. 22l. (1) From the school transportation fund money appropriated under section 11, there is allocated for
2025-2026 only an amount not to exceed $125,000,000.00 to districts and intermediate districts for transportation
costs. Funding for each district or intermediate district is as follows:
(a) The department must assign each district and intermediate district to an octile based on the number of
riders per square mile and calculate the median cost per rider for each octile.
(b) Funds must be distributed to each district and intermediate district as follows:
(i) An initial amount at the lesser of the octile ’s median cost per rider or the actual transportation cost per
general education rider at the district or intermediate district.
(ii) An additional amount for districts and intermediate districts that have outlier costs per rider that are
deemed reasonable, as determined by the department.
(c) If funds are insufficient to fully fund payments under this section, payments may be prorated on an equal
percentage basis.
(2) In addition to the funds allocated under subsection (1), from the school transportation fund money
appropriated under section 11, there is allocated for 2022 -2023 only an amount not to exceed $200,000.00 to an
intermediate district for a study on district transportation costs. The intermediate district receiving funds under
this subsection must submit a report to the department, the state budget director, the house and senate
appropriations subcommittees on school aid, and the house and senate fiscal ag encies by February 29, 2024 on
the outcomes of the study under this subsection. Notwithstanding section 18a, funds allocated under this
subsection may be available for expenditure until September 30, 2026. A recipient of funding under this subsection
must return any unexpended funds to the department in a manner prescribed by the department by not later
than October 30, 2026.
(3) To remain eligible for funding under subsection (1), by not later than December 1 of the current fiscal year,
a school district must submit, in a form and manner determined by the department, to their intermediate district,
and a public school academy must submit, in a form and manner determined by the department, to the
intermediate district in which the public school academy is located, the number of nonpublic school students the
district expects to transport as required under section 1321 of the revi sed school code, MCL 380.1321.
Intermediate districts shall submit this information to the department by not later than February 1.
(4) The department shall compile the reports provided by intermediate districts under subsection (3) into
1 legislative report. The department shall provide this report not later than March 1 of each fiscal year for which
funding is allocated under this section to the house and senate subcommittees responsible for school aid, the house
and senate fiscal agencies, and the state budget director.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 22m. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
an amount not to exceed $3,500,000.00 for supporting the integration of local data systems into the Michigan data
hub network based on common standards and applications that are in compliance with section 19(6). In addition,
from the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only an amount
not to exceed $1,500,000.00 for the purposes of this section.
(2) An entity that is the fiscal agent for no more than 5 consortia of intermediate districts that previously
received funding from the technology readiness infrastructure grant under former section 22i for the purpose of
establishing regional data hubs that are part of the Michigan data hub network is eligible for funding under this
section.
(3) The center shall work with an advisory committee composed of representatives from intermediate districts
within each of the data hub regions to coordinate the activities of the Michigan data hub network.
(4) The center, in collaboration with the Michigan data hub network, shall determine the amount of funds
distributed under this section to each participating regional data hub within the network, based upon a
competitive grant process. The center shall ensure that the entities receiving funding under this section represent
geographically diverse areas in this state.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the center.
(6) To receive funding under this section, a regional data hub must have a governance model that ensures local
control of data, data security, and student privacy issues. The integration of data within each of the regional data
hubs must provide for the actionable use of data by districts and intermediate districts through common reports
and dashboards and for efficiently providing information to meet state and federal reporting purposes.
(7) Participation in a data hub region in the Michigan data hub network under this section is voluntary and is
not required.
(8) Entities receiving funding under this section shall use the funds for all of the following:
(a) Creating an infrastructure that effectively manages the movement of data between data systems used by
intermediate districts, districts, and other educational organizations in Michigan based on common data
standards to improve student achievement.
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(b) Utilizing the infrastructure to put in place commonly needed integrations, reducing cost and effort to do
that work while increasing data accuracy and usability.
(c) Promoting the use of a more common set of applications by promoting systems that integrate with the
Michigan data hub network.
(d) Promoting 100% district adoption of the Michigan data hub network.
(e) Ensuring local control of data, data security, and student data privacy.
(f) Utilizing the infrastructure to promote the actionable use of data through common reports and dashboards
that are consistent statewide.
(g) Creating a governance model to facilitate sustainable operations of the infrastructure in the future,
including administration, legal agreements, documentation, staffing, hosting, and funding.
(h) Evaluating future data initiatives at all levels to determine whether the initiatives can be enhanced by
using the standardized environment in the Michigan data hub network.
(9) By not later than January 1 of each fiscal year, the center shall prepare a summary report of information
provided by each entity that received funds under this section that includes measurable outcomes based on the
objectives described under this sect ion and a summary of compiled data from each entity to provide a means to
evaluate the effectiveness of the project. The center shall submit the report to the house and senate appropriations
subcommittees on school aid and to the house and senate fiscal agencies.

Sec. 22p. (1) Subject to subsection (2), to receive funding under section 22b, a district or public school academy
that is assigned by the superintendent of public instruction as a partnership district must have a signed 3 -year
partnership district agreement with the department that includes all of the following:
(a) Measurable benchmarks that the district or public school academy will achieve for each school operated by
the district or public school academy that is subject to the partnership district agreement after 18 months and
after 36 months from the date the agreement was originally signed. Measurable benchmarks under this
subdivision must include all of the following:
(i) Pupils on track to meet or exceed grade level proficiency, with consideration for district or public school
academy needs identified as required under section 21h.
(ii) Either of the following, as applicable:
(A) At least 1 proficiency or growth benchmark based on state assessments described in section 104b or 104c.
(B) At least 1 proficiency or growth benchmark based on a benchmark assessment described in section 104h.
(iii) Improved high school graduation rates, as applicable.
(iv) Attendance rates.
(b) Accountability measures to be imposed if the district or public school academy does not achieve the
measurable benchmarks described in subdivision (a) or section 21h(2)(b) for each school operated by the district
or public school academy that is subject to the partnership district agreement. For a district assigned as a
partnership district as described in this subsection, accountability measures under this subdivision must include
the reconstitution of the school. For a public school academy assigned as a partnership district as described in
this subsection, accountability measures under this subdivision may include the reconstitution of the school.
(c) For a public school academy assigned as a partnership district as described in this subsection, a requirement
that, if reconstitution is imposed on a school that is operated by the public school academy and that is subject to
the partnership district agreement, the school must be reconstituted as described in section 507, 528, or 561, as
applicable, of the revised school code, MCL 380.507, 380.528, and 380.561.
(d) For a district assigned as a partnership district as described in this subsection, a provision that, if
reconstitution is imposed on a school that is operated by the district and that is subject to the partnership district
agreement, reconstitution may require closure of the school building, but, if the school building remains open,
reconstitution must include, but is not limited to, all of the following:
(i) The district shall make significant changes to the instructional and noninstructional programming of the
school based on the needs identified through a comprehensive review of data in compliance with section 21h.
(ii) The district shall review whether the current principal of the school should remain as principal or be
replaced.
(iii) The reconstitution plan for the school must require the adoption of goals similar to the measurable
benchmarks included in the partnership district agreement, with a limit of 3 years to achieve the goals. If the
goals are not achieved within 3 years, the superintendent of public instruction shall impose a second
reconstitution plan.
(2) If a district or public school academy is assigned as a partnership district as described in subsection (1)
during the current fiscal year, it shall ensure that it has a signed partnership district agreement as described in
subsection (1) in place by n ot later than 90 days after the date that it is assigned as a partnership district. If a
district or public school academy described in this subsection does not comply with this subsection, the department
shall withhold funding under section 22b for that d istrict or public school academy until the district or public
school academy has a signed partnership district agreement as described in subsection (1) in place.
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Sec. 22r. (1) The state school aid pupil support reserve fund is created as a separate account within the state
school aid fund to fund programs described in sections 21h, 32n, 65, 67f, and 99h. It is the intent of the legislature
that money in the state school aid pupil support reserve fund will be used to support the above programs for 2025-
2026, 2026-2027, and 2027-2028.
(2) The state treasurer may receive money or other assets from any source for deposit into the state school aid
pupil support reserve fund. The state treasurer shall direct the investment of the state school aid pupil support
reserve fund. The state treasu rer shall credit to the state school aid pupil support reserve fund interest and
earnings from state school aid pupil support reserve fund investments.
(3) Money in the state school aid pupil support reserve fund at the close of the fiscal year remains in the state
school aid pupil support reserve fund and does not lapse to the state school aid fund.
(4) The department of treasury is the administrator of the state school aid pupil support reserve fund for
auditing purposes.
(5) Money available in the state school aid pupil support reserve fund must not be expended without a specific
appropriation.
(6) For the fiscal year ending September 30, 2026 only, $326,112,200.00 from the state school aid fund is
deposited into the state school aid pupil support reserve fund.

Sec. 22s. (1) The general pupil support reserve fund is created as a separate account within the state school
aid fund to fund programs described in section 99h. It is the intent of the legislature that money in the general
pupil support reserve fund will be used to support the above program for 2025-2026, 2026-2027, and 2027-2028.
(2) The state treasurer may receive money or other assets from any source for deposit into the general pupil
support reserve fund. The state treasurer shall direct the investment of the general pupil support reserve fund.
The state treasurer shall credit to the general pupil support reserve fund interest and earnings from general pupil
support reserve fund investments.
(3) Money in the general pupil support reserve fund at the close of the fiscal year remains in the general pupil
support reserve fund and does not lapse to the state school aid fund.
(4) The department of treasury is the administrator of the general pupil support reserve fund for auditing
purposes.
(5) Money available in the general pupil support reserve fund must not be expended without a specific
appropriation.
(6) For the fiscal year ending September 30, 2026 only, $1,800,000.00 from the general fund is deposited into
the general pupil support reserve fund.

Sec. 24. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025 -2026
an amount not to exceed $7,650,000.00 for payments to the educating district or intermediate district for
educating pupils assigned by a court or the department of health and human services to reside in or to attend a
juvenile detention facility or child caring institution licensed by the department of health and human services
and approved by the department to provide an on-grounds education program. The amount of the payment under
this section to a district or intermediate district is calculated as prescribed under subsection (2).
(2) The department shall allocate the total amount allocated under this section by paying to the educating
district or intermediate district an amount equal to the lesser of the district’s or intermediate district’s added cost
or the department’s approved per-pupil allocation for the district or intermediate district. For the purposes of this
subsection:
(a) “Added cost” means 100% of the added cost each fiscal year for educating all pupils assigned by a court or
the department of health and human services to reside in or to attend a juvenile detention facility or child caring
institution licensed by the department of health and human services or the department of licensing and regulatory
affairs and approved by the department to provide an on-grounds education program. Added cost is computed by
deducting all other revenue received under this article for pu pils described in this section from total costs, as
approved by the department, in whole or in part, for educating those pupils in the on-grounds education program
or in a program approved by the department that is located on property adjacent to a juvenil e detention facility
or child caring institution. Costs reimbursed by federal funds are not included.
(b) “Department’s approved per -pupil allocation ” for a district or intermediate district is determined by
dividing the total amount allocated under this section for a fiscal year by the full-time equated membership total
for all pupils approved by the department to be funded under this section for that fiscal year for the district or
intermediate district.
(3) A district or intermediate district educating pupils described in this section at a residential child caring
institution may operate, and receive funding under this section for, a department -approved on -grounds
educational program for those pupils that is longer than 181 days, but not longer than 233 days, if the child caring
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institution was licensed as a child caring institution and offered in 1991 -92 an on-grounds educational program
that was longer than 181 days but not longer than 233 days and that was operated by a district or intermediate
district.
(4) Special education pupils funded under section 53a are not funded under this section.

Sec. 24a. From the state school aid fund money appropriated in section 11, there is allocated an amount not to
exceed $1,355,700.00 for 2025 -2026 for payments to intermediate districts for pupils who are placed in juvenile
justice service facilities operated by the department of health and human services. The amount of the payment to
each intermediate district is an amount equal to the state share of those costs th at are clearly and directly
attributable to the educational programs for pupils placed in facilities described in this section that are located
within the intermediate district ’s boundaries. The intermediate districts receiving payments under this section
shall cooperate with the department of health and human services to ensure that all funding allocated under this
section is utilized by the intermediate district and department of health and human services for educational
programs for pupils described in this section. Pupils described in this section are not eligible to be funded under
section 24. However, a program responsibility or other fiscal responsibility associated with these pupils must not
be transferred from the department of health and human services to a district or intermediate district unless the
district or intermediate district consents to the transfer.

Sec. 25f. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not
to exceed $1,600,000.00 for 2025 -2026 for payments to strict discipline academies and qualified districts, as
provided under this section.
(2) To receive funding under this section, a strict discipline academy or qualified district must first comply
with section 25e and use the pupil transfer process described in that section for changes in enrollment as
prescribed under that section and apply annually for funding under section 24.
(3) The total amount allocated to a strict discipline academy or qualified district under this section is equal to
the strict discipline academy ’s or qualified district ’s pupil membership in the immediately preceding year
multiplied by an amount calculated by dividing the total allocation under this section by the total pupil
membership for eligible strict discipline academies and qualified districts in the immediately pr eceding year.
However, the sum of the amounts received by a strict discipline academy o r qualified district under this section
and under section 24 must not exceed the product of the strict discipline academy’s or qualified district’s per-pupil
allocation calculated under section 20 multiplied by the strict discipline academy’s or qualified district’s full-time
equated membership. The department shall allocate funds to strict discipline academies and qualified districts
under this section on a monthly basis.
(4) Special education pupils funded under section 53a are not funded under this section.
(5) The department shall make payments to strict discipline academies and qualified districts under this
section according to the payment schedule under section 17b.
(6) For purposes of this section, the pupil membership for the current fiscal year for a qualified district is the
actual number of pupils that are in the custody of a county juvenile agency as described in subsection (7)(a).
(7) As used in this section:
(a) “Qualified district ” means a public school academy that is not a strict discipline academy that enrolls
individuals who are in the custody of a county juvenile agency to which both of the following are applicable:
(i) The agency had custody of individuals who were enrolled in a strict discipline academy in the 2020 -2021
school year.
(ii) The strict discipline academy that the individuals described in subparagraph ( i) were enrolled in
subsequently closed.
(b) “Strict discipline academy” means a public school academy established under sections 1311b to 1311m of
the revised school code, MCL 380.1311b to 380.1311m.

Sec. 25g. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $1,250,000.00 for 2025 -2026 for the purposes of this section. Except as otherwise provided in this
section, if the operation of the sp ecial membership counting provisions under section 6(4)(dd) and the other
membership counting provisions under section 6(4) result in a pupil being counted as more than 1.0 FTE in a
fiscal year, the payment made for the pupil under sections 22a and 22b must not be based on more than 1.0 FTE
for that pupil, and that portion of the FTE that exceeds 1.0 is paid under this section in an amount equal to that
portion multiplied by the educating district ’s foundation allowance or per -pupil payment calculated under
section 20. It is the intent of the legislature that, for 2026 -2027, the allocation from the state school aid fund
money appropriated in section 11 for the purposes described in this section will be $750,000.00.
(2) Special education pupils funded under section 53a are not funded under this section.
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(3) If the funds allocated under this section are insufficient to fully fund the adjustments under subsection (1),
the department shall prorate payments under this section on an equal per-pupil basis.
(4) The department shall make payments to districts under this section according to the payment schedule
under section 17b.

Sec. 26a. From the state school aid fund money appropriated in section 11, there is allocated an amount not to
exceed $14,000,000.00 for 2025 -2026 to reimburse districts and intermediate districts under section 12 of the
Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2024. The department shall pay
the allocations by not later than 60 days after the department of treasury certifies to the department and to the
state budget director that the department of treasury has received all necessary information to properly determine
the amounts due to each eligible recipient.

Sec. 26b. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $5,549,000.00 for 2025-2026 for payments to districts, intermediate districts, and community college
districts for the portion of the payment in lieu of taxes obligation that is attributable to districts, intermediate
districts, and community college districts under section 2154 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2154.
(2) If the amount appropriated under this section is insufficient to fully pay obligations under this section,
payments are prorated on an equal basis among all eligible districts, intermediate districts, and community
college districts.

Sec. 26c. (1) From the state school aid fund money appropriated under section 11, there is allocated an amount
not to exceed $37,700,000.00 for 2024-2025 and there is allocated an amount not to exceed $43,300,000.00 for
2025-2026 to the promise zone fund created in subsection (3). The funds allocated under this section reflect the
amount of revenue from the collection of the state education tax captured under section 17 of the Michigan promise
zone authority act, 2008 PA 549, MCL 390.1677.
(2) Funds allocated to the promise zone fund under this section must be used solely for payments to eligible
districts and intermediate districts, in accordance with section 17 of the Michigan promise zone authority act,
2008 PA 549, MCL 390.1677, that have a promise zone development plan approved by the department of treasury
under section 7 of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1667. Eligible districts and
intermediate districts shall use payments made under this section for rei mbursement for qualified educational
expenses as that term is defined in section 3 of the Michigan promise zone authority act, 2008 PA 549,
MCL 390.1663.
(3) The promise zone fund is created as a separate account within the state school aid fund to be used solely
for the purposes of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679. All of the
following apply to the promise zone fund:
(a) The state treasurer shall direct the investment of the promise zone fund. The state treasurer shall credit
to the promise zone fund interest and earnings from fund investments.
(b) Money in the promise zone fund at the close of a fiscal year remains in the promise zone fund and does not
lapse to the general fund.
(4) Subject to subsection (2), the state treasurer may make payments from the promise zone fund to eligible
districts and intermediate districts under the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661
to 390.1679, to be used for the purposes of a promise zone authority created under that act.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 26d. (1) From the state school aid fund money appropriated under section 11, there is allocated an amount
not to exceed $14,400,000.00 for 2025 -2026 for reimbursements to intermediate districts as required under
section 15b of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2665b.
(2) The amounts reimbursed under subsection (1) must be used by the intermediate district only for the
purposes for which the property taxes were originally levied.
(3) The Michigan strategic fund and the Michigan economic development corporation shall work with the
department of treasury in identifying the amount of tax revenues that are to be reimbursed under subsection (1).
(4) Notwithstanding section 17b, the department of treasury shall make payments under this section on a
schedule determined by the department of treasury.

Sec. 27a. (1) From the educator fellowship public provider fund money appropriated in section 11, there is
allocated for 2025 -2026 an amount not to exceed $10,000,000.00, from the state school aid fund money
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appropriated in section 11, there is allocated for 2025-2026 an amount not to exceed $10,000,000.00, and from the
general fund money appropriated in section 11, there is allocated for 2025 -2026 an amount not to exceed
$5,000,000.00 for the MI future educator fellowship program. The funds allocated under this section must be used
to offset tuition costs for individuals who are working toward earning their initial teacher certification. At the
close of the fiscal year, money allocated under this section that is unspent must be deposited as follows:
(a) For state school aid fund money, into the educator fellowship public provider fund in section 27d.
(b) For general fund money, into the educator fellowship private provider fund in section 27e.
(2) To establish initial eligibility for an award from funding under this section, an individual must meet all of
the following conditions by the date of enrollment described in subdivision (b):
(a) Have graduated from high school with a diploma or certificate of completion or achieved a high school
equivalency certificate.
(b) Be admitted to an eligible educator preparation program; be working toward a teacher certification; be
enrolled in enough coursework to be considered enrolled full-time during the academic year, as determined by the
student’s educator preparation program, or the equivalent of full-time participation for individuals enrolled in an
alternative certification program, as defined by the department; and, for students at institutions of higher
education, be considered at least a junior-level student, as determined by the institution of higher education.
(c) Not have previously earned a teacher certification.
(d) Timely complete a grant application in a form and manner prescribed by the department of lifelong
education, advancement, and potential.
(e) Timely file the Free Application for Federal Student Aid for the enrollment period described in
subdivision (b).
(f) Timely apply for all available gift aid for the enrollment period described in subdivision (b).
(g) Agree to repay any funds received from funding under this section if the individual does not maintain
enrollment in their educator preparation program, the individual does not successfully complete their educator
program, or the individual does not complete the work requirement described in subsection (7).
(h) Have a high school or college grade point average of at least 3.0.
(i) Be a resident of this state, as determined for purposes of the Free Application for Federal Student Aid.
(3) To establish continuing eligibility for an award under this section at an eligible educator preparation
program, an individual must meet all of the following conditions:
(a) Maintain full-time continuous enrollment in an eligible educator preparation program, as determined by
the educator preparation program, or the equivalent of full -time participation for individuals enrolled in an
alternative certification program, as d efined by the department, excluding any period of time missed due to a
medical or other emergency, as determined by the department of lifelong education, advancement, and potential.
(b) Maintain satisfactory academic progress, including a grade point average of at least 3.0, in courses provided
by the eligible educator preparation program and meet requirements established by the eligible educator
preparation program.
(c) Participate in relevant academic and career advising programs offered by the eligible educator preparation
program.
(d) Timely file the Free Application for Federal Student Aid for each academic year in which the individual
receives an award from funding under this section.
(e) Timely apply for all available gift aid for each academic year in which the individual applies for funding
under this section.
(f) Maintain residency in this state, as determined for purposes of the Free Application for Federal Student
Aid.
(4) An award under this section must not exceed $10,000.00 per academic year or the cost of tuition at the
eligible educator preparation program attended, whichever is less. As used in this subsection, the cost of tuition
at an educator preparation program that is an institution of higher education is the in-district resident rate plus
other required fees, as determined by the department of lifelong education, advancement, and potential; and the
cost of tuition at an educator preparation program that is an alternative certification provider is the cost of tuition
plus other required fees, as determined by the department of lifelong education, advancement, and potential.
(5) Awards under this section must be distributed to eligible educator preparation programs on behalf of an
eligible recipient on a timeline determined by the department of lifelong education, advancement, and potential.
(6) Pending available funds, applicants may renew their award for up to 3 years, or until program completion,
whichever comes first.
(7) To be an eligible recipient of fellowship funding under this section, an individual must pledge to work as a
certified teacher in a public school or a qualifying public preschool program in this state and must meet 1 of the
following work requirements:
(a) For a recipient of funding under this section who received an award for 1 academic year, 3 years of work as
a certified teacher in a public school or a qualifying public preschool program in this state.
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(b) For a recipient of funding under this section who received an award for 2 academic years, 4 years of work
as a certified teacher in a public school or a qualifying public preschool program in this state.
(c) For a recipient of funding under this section who received an award for 3 academic years, 5 years of work
as a certified teacher in a public school or a qualifying public preschool program in this state.
(d) For a recipient working in a critical needs district, 3 years of work as a certified teacher. As used in this
subdivision, “critical needs district” means a district with a median household income in the lowest quartile in
each prosperity region, as determined by the department.
(8) If an award recipient does not maintain enrollment in their educator preparation program as required
under subsection (3)(a), does not successfully complete their educator preparation program, or does not meet the
work requirement described in subsecti on (7), any amount received from funds under this section converts to a
0% interest loan that must be repaid to this state within 10 years, plus any deferment period as determined and
approved by the department of lifelong education, advancement, and poten tial. The amount of repayment must
be reduced proportionate to the number of years worked in schools or qualifying public preschool programs in this
state as a certificated teacher out of 5 years. The department of lifelong education, advancement, and pote ntial
shall develop guidance to enforce this subsection.
(9) An individual may not concurrently receive funding through programs funded under this section and grow
your own programs funded under section 27b.
(10) If the amount allocated in subsection (1) is insufficient to fully fund awards under this section, there is
appropriated from the educator fellowship public provider fund in section 27d or the educator fellowship private
provider fund in section 27e, as applicable, the amount necessary to fully fund these programs. The state budget
director shall provide notification to the house and senate appropriations subcommittees on K to 12 school aid
and the house and senate fiscal agencies for any additional appropriation described under this subsection.
(11) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall
make payments under this section on a schedule determined by the department of lifelong education,
advancement, and potential.
(12) The department of lifelong education, advancement, and potential shall report to the chairpersons of the
house appropriations subcommittee on school aid and education and the senate appropriations subcommittee on
pre-K to 12 by February 15 of the current fiscal year. The report must include the following:
(a) The number and amount of awards granted in the previous fiscal year.
(b) The number of recipients in the previous fiscal year that had their awards converted to loans under
subsection (8).
(13) As used in this section, “eligible educator preparation program” means a public or nonpublic institution
of higher education or an alternative route provider that meets all of the following, as applicable:
(a) Is approved by the department to offer teacher preparation programming.
(b) Enrolls 1 or more future educator fellowship recipients.
(c) Has not been deemed as ineligible to receive Michigan achievement scholarship funding under section 248
as a result of exceeding tuition restraint requirements described in section 248.

Sec. 27b. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
only an amount not to exceed $70,000,000.00 to districts, intermediate districts, and consortia of intermediate
districts for grow your own programs and educator development programs as described in this section and subject
to subsection (5).
(2) The department shall establish a competitive grant process to distribute funds under this section. A district,
intermediate district, or consortium of intermediate districts must apply for funds in a form and manner
prescribed by the department. As par t of the application described in this subsection, a district, intermediate
district, or consortium of intermediate districts must submit the following information and assurances:
(a) Demonstrated need for funding in the district, intermediate district, or consortium of intermediate districts
or the broader community, including projected workforce needs, and a proposed spending plan on how the funds
will be utilized that includes, but is not limited to, expected tuition, fees, and books for the program.
(b) Number of support staff projected to participate in a program described in this section.
(c) The planned activities for programs described in this section.
(d) Projected outcomes of programs described in this section, which must include, but are not limited to, the
following:
(i) Teacher and school leader retention and satisfaction.
(ii) Teacher and school leader efficacy.
(iii) Anticipated school or district partners, evidenced by signed partnership agreements.
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(e) Assurances that the programs described in this section will be no cost for participants and that participants
will be compensated as an employee for the duration of their training, including a paid residency, fellowship, or
student teaching.
(3) Recipients of grants under this section must submit performance reports to the department not less than
twice per year. Each report must include the following information:
(i) The number of program participants served and retention in the program or district.
(ii) Qualitative and quantitative participant feedback.
(iii) Evidence of efficacy and progress toward projected outcomes.
(4) The department shall ensure that all performance reports required under subsection (3) are made publicly
available on the department’s website.
(5) Grant awards under this section must be structured into 3 tiers, as described in subsections (6), (8), and
(11). All programs funded under this section must address a measurable and critical problem related to the health
and efficacy of this state ’s education talent working in Michigan schools and be data - and research -driven,
demonstrating effectiveness against intended and measurable outcomes.
(6) Funding for tier 1 grant awards must not exceed $50,000,000.00, unless otherwise directed by the
legislature. The department shall allocate at least 1 tier 1 grant of not less than $40,000,000.00. Tier 1 grants
must sustain or further scale grow your own programs or educator development programs that meet all of the
following criteria:
(a) Have been in operation in this state for at least 5 years, and evaluated for at least 2 years by a rigorous,
independent Michigan-based evaluator, and results of the program have been made publicly available.
(b) Have at least 2 consecutive years of public financial audits of the program with no material findings.
(c) Demonstrate broad geographic reach and investment into teachers and school leaders at every experience
level, in partnerships established with not fewer than 15 local education agencies across both urban and rural
regions, that extend back to the start of the 2023 -2024 school year, bound by written agreements that include
data sharing with an independent evaluator for evaluation purposes.
(d) Generate private matching funds.
(7) Notwithstanding section 18a, funds allocated for programs described in subsection (6) may be available for
expenditure until September 30, 2029. A recipient of funding for a program described in subsection (6) must return
any unexpended funds to the department in a manner prescribed by the department by not later than October 30,
2029.
(8) Tier 2 grants must scale or sustain grow your own programs or educator development programs that meet
all of the following criteria:
(a) Have been in operation for at least 3 years.
(b) Demonstrate promising internal results, but are not yet supported by an independent evaluation.
(c) Serve a geographically diverse population, including both urban and rural areas.
(d) Have a demonstrated track record of receiving private philanthropic or corporate funding.
(9) Grant awards for programs described in subsection (8) must not exceed $12,500,000.00 per year.
(10) Notwithstanding section 18a, funds allocated for programs described in subsection (8) may be available
for expenditure until September 30, 2027. A recipient of funding for a program described in subsection (8) must
return any unexpended funds to the d epartment in a manner prescribed by the department by not later than
October 30, 2027.
(11) Tier 3 grants must fund pilot -stage or early -stage grow your own programs or educator development
programs that meet all of the following criteria:
(a) Have been in operation for fewer than 2 years.
(b) Do not yet have independent evaluation data available.
(c) Are limited in scope or geography.
(d) Include a documented path to scale or expand the program to serve more educators or additional districts.
(12) Grant awards for programs described in subsection (11) must not exceed $5,000,000.00 per year.
(13) Notwithstanding section 18a, funds allocated for programs described in subsection (11) may be available
for expenditure until September 30, 2027. A recipient of funding for a program described in subsection (11) must
return any unexpended funds to the department in a manner prescribed by the department by not later than
October 30, 2027.
(14) An individual may not concurrently receive funding for programs under this section and programs funded
under sections 27a and 27c.
(15) Notwithstanding section 17b, the department shall make payments under this section by not later than
December 15, 2025.
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Sec. 27c. (1) From the state school aid fund money appropriated in section 11, there is allocated $30,000,000.00
for 2025-2026 and from the educator fellowship public provider fund money appropriated in section 11, there is
allocated $20,000,000.00 for 202 5-2026 for the MI future educator student teacher stipend program. Except as
otherwise provided in this section, the funds allocated under this section must be paid to eligible educator
preparation programs for payments to eligible student teachers working in a district. At the close of the fiscal
year, state school aid fund money allocated under this section that is unspent must be deposited into the educator
fellowship public provider fund in section 27d.
(2) An eligible student teacher under this subsection must meet all of the following:
(a) The individual must be admitted to an eligible educator preparation program, be working toward a teacher
certification, and be participating in required student teaching coursework. As used in this subdivision, “required
student teaching coursework ” means credit hours, or the program equivalent, required by an eligible educator
preparation program for successful completion of the program. This coursework must include regular placement
in a district where the student gains real-world, first-hand experience working in a classroom, teaching students,
engaging in the day -to-day activities of a certified teacher, and working daily under the guidance of a certified
teacher.
(b) The individual must timely complete an application in a form and manner prescribed by the department of
lifelong education, advancement, and potential. The application must include the district in which the individual
is working as a student teacher and must include a certification by the district and the individual ’s eligible
educator preparation program that the student is working as a student teacher. If the individual ’s eligible
educator preparation program is not provided by a public institution of higher education, the district in which the
individual is working must also provide an assurance that they will forward any amount received unde r this
section from the department of lifelong education, advancement, and potential for purposes of the program
described in this section to the individual’s eligible educator preparation program.
(c) The individual must not have received a payment from funds under this subsection previously, unless the
individual is enrolled in an eligible educator preparation program that requires multiple semesters of student
teaching. An individual may receive not more than 2 awards under this section.
(d) If an individual is employed by their district as a teacher of record, they are not eligible for payment under
this section.
(e) An individual that is a current City Year corps member enrolled in an eligible educator preparation
program is eligible for payment under this section.
(3) The department of lifelong education, advancement, and potential shall pay each eligible educator
preparation program an amount not to exceed $9,600.00 per academic semester for each eligible student teacher
working in a district. If the individual ’s eligible educator preparation program is not provided by a public
institution of higher education, the department of lifelong education, advancement, and potential shall pay an
amount not to exceed $9,600.00 per academic semester to the district in which the individual is working as a
student teacher, and that district must forward the amount received to the individual ’s eligible educator
preparation program. It is intended that payments under this subsection are made at the beginning of the
semester in 1 lump sum for eligible student teachers.
(4) Eligible educator preparation programs shall pay funds received under this section, in entirety, to the
eligible student teacher.
(5) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make
payments under this section on a schedule determined by the department of lifelong education, advancement, and
potential.
(6) If the amount allocated in subsection (1) is insufficient to fully fund awards under this section, there is
appropriated from the educator fellowship public provider fund in section 27d the amount necessary to fully fund
the programs described in this section. The state budget director shall notify the house and senate appropriations
subcommittees on K to 12 school aid and the house and senate fiscal agencies of any additional appropriation
described in this subsection.
(7) As used in this section, “eligible educator preparation program” means an institution of higher education
that meets all of the following:
(a) Is a public or private institution of higher education in this state.
(b) Has an established school of education with an educator preparation program approved by the department.
(c) Has not been deemed as ineligible to receive Michigan achievement scholarship funding under section 248
as a result of exceeding tuition restraint requirements described in section 248.

Sec. 27h. (1) Subject to the provisions of this subsection, in addition to the money appropriated in section 11,
from the state school aid fund there is appropriated for 2024-2025 only for the purposes of this section an amount
not to exceed $49,418,800.00 . Programs funded under this section are intended to expand support for new
teachers, school counselors, and administrators; improve their instructional practices; and improve teacher
40
retention. The appropriation and allocations in this section are conditional on the effective issuance of a directive
by the state budget director, pursuant to section 451a of the management and budget act, 1984 PA 431,
MCL 18.451a, to lapse all remaining funding from a work project that was established under this section in 2023-
2024. The amount appropriated and allocated under this section may not exceed the amount lapsed from the work
project as described in the immediately preceding sentence.
(2) From the appropriation under subsection (1), the department shall provide grants to districts for mentor
services for teachers and school administrators as required under sections 1249b and 1526 of the revised school
code, MCL 380.1249b and 380.1526.
(3) To receive a grant under this section, a district must apply for the grant in a form and manner prescribed
by the department, and must ensure that mentoring services funded under this section align with the research -
based mentor standards developed by the department under subsection (6), as determined by the department.
(4) Districts that receive grants under subsection (2) may use the funding for any of the following allowable
expenditures:
(a) Stipends for any of the following individuals:
(i) Veteran teachers who serve as mentor teachers of teachers participating in grow your own programs.
(ii) Veteran teachers who serve as mentor teachers for teachers who are within their first 3 years of teaching.
(b) Training for mentor teachers.
(c) Books, materials, professional learning expenses, and other resources necessary for mentoring and
onboarding new teachers. Professional learning expenses under this subdivision must be in addition to
professional learning requirements described under section 1526 of the revised school code, MCL 380.1526.
(d) Staffing costs to cover time spent by both new and mentor teachers dedicated to mentoring and onboarding
rather than being in the classroom or performing other job duties.
(e) Contracting with 1 or more established state professional organizations to provide mentoring services to
school administrators. An amount equal to $3,000.00 per administrator per year or the actual program cost,
whichever is lesser, of the costs descri bed in this subdivision may be reimbursed from grant funding under
subsection (2). The department shall develop a list of approved providers of mentoring activities for school
administrators as described in this subdivision. Programs on the list must align with the research-based mentor
standards developed under subsection (6).
(5) From the appropriation under subsection (1), there is allocated $1,500,000.00 per year to provide mentoring
services for school administrators subject to subsections (3) and (4). Grants under this subsection must be awarded
in the amount of $3,000.00 p er eligible school administrator per year or the actual program cost, whichever is
less. If funding under this subsection is not sufficient to fully fund all eligible applicants, the department shall
not prorate awards. If funding remains unspent under this subsection after grants to all eligible applicants have
been awarded, the department may reallocate those funds to other approved mentoring activities under this
section.
(6) From the appropriation under subsection (1), there is allocated $500,000.00 for a competitive grant to assist
the department with the development of research -based mentor standards, curricula, and professional learning
to ensure mentors are prepared to support new teachers. Intermediate districts and other educational entities are
eligible to apply for this grant in a form and manner determined by the department.
(7) From the appropriation under subsection (1), there is allocated $500,000.00 for a competitive grant to
conduct a program evaluation of activities funded under this section. The evaluation must identify
recommendations to strengthen the program. Qualifi ed evaluators are eligible to apply for this grant in a form
and manner prescribed by the department. The funds allocated under this subsection for 2024 -2025 are a work
project appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose
of the work project is to evaluate the activities under this section. The estimated completion date of the work
project is September 30, 2028.
(8) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(9) Subject to subsection (7), the funds allocated under this section for 2024 -2025 are a work project
appropriation, and any unexpended funds for 2024 -2025 are carried forward into 2025 -2026. The purpose of the
work project is to continue support for grants for mentor stipends. The estimat ed completion date of the work
project is September 30, 2029. It is the intent of the legislature that up to $10,000,000.00 be expended each year.
If the annual expenditures described in this subsection total less than $10,000,000.00 after grants to all el igible
applicants have been awarded, the department may reallocate those funds to support mentoring services for other
certified educators not otherwise permitted under subsection (2).

Sec. 27 l. (1) From the state school aid fund money appropriated in section 11, there is allocated
$203,000,000.00 for 2024-2025 only, and from the MPSERS obligation reform reserve fund money appropriated
under section 11, there is allocated the remaining balance, estima ted at $147,300,000.00 for 2024 -2025 only to
districts and intermediate districts for the purposes of this section. The state school aid fund allocation in this
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section is conditional on the effective issuance of a directive by the state budget director, pursuant to section 451a
of the management and budget act, 1984 PA 431, MCL 18.451a, to lapse all remaining funding from a work project
that was established under section 27k in 2023-2024. The amount allocated from the state school aid fund under
this section may not exceed the amount lapsed from the work project as described in the immediately preceding
sentence.
(2) The state school aid fund money allocated in subsection (1) is allocated to districts and intermediate
districts in an equal amount per pupil. Subject to subsection (3), a district or intermediate district shall use all of
the funding allocated under this subsection to increase compensation for educators in the district or intermediate
district.
(3) If there are 1 or multiple labor unions representing educators in the district or intermediate district, the
district or intermediate district shall bargain any increases in compensation under subsection (2) with those
unions. All payments to educators made by districts or intermediate districts with funds allocated under
subsection (2) shall be in addition to any existing compensation negotiated in a collective bargaining agreement.
(4) The MPSERS obligation reform reserve fund money allocated in subsection (1) is allocated for payments to
participating entities to offset normal costs associated with retiree health benefits. The amount allocated to each
participating entity under this subsection must be based on the participating entity ’s proportion of the total
funding distributed in 2024-2025 under section 147g. Participating entities must use funding distributed under
this subsection as an offset for normal costs associated with retiree health benefits.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(6) The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended
funds for 2024 -2025 are carried forward into 2025 -2026. The purpose of the work project is to increase
compensation for educators and offset norma l costs associated with retiree health care benefits. The estimated
completion date of the work project is September 30, 2026.
(7) As used in this section:
(a) “Educator” includes, but is not limited to, teachers, librarians, speech therapists, language therapists,
physical therapists, occupational therapists, school counselors, school social workers, school psychologists, school
nurses, paraprofessionals aids, food service workers, custodians, bus drivers, and literacy coaches. Educator also
includes any other school employee covered under a collective bargaining agreement.
(b) “Participating entity” means a district, intermediate district, district library, or community college that is
a reporting unit of the Michigan public school employees ’ retirement system under the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public
school employees’ retirement system for the applicable fiscal year.

Sec. 27p. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025
only an amount not to exceed $12,500,000.00 to Marquette -Alger RESA for an apprenticeship model grow your
own program as part of a consortia of at least 45 intermediate districts.
(2) The intermediate district receiving funding under this section shall use the funding to implement a grow
your own program. A grow your own program described in this section must be implemented to improve the
teacher talent pipeline and provide a no -cost pathway for support staff members to become certified teachers.
Allowable expenses for grow your own programs under this section include, but are not limited to, all of the
following:
(a) Tuition and fees for an accelerated degree, for a traditional bachelor ’s degree for current candidates who
are not teachers, or for an advanced degree. As used in this subdivision, “advanced degree” includes, but is not
limited to, a postbaccalaureate credential or certificate.
(b) Books.
(c) Testing fees.
(d) Travel to and from coursework.
(e) Substitute employee salary and wages for the duration of the educator preparation program attended by
the recipient staff of the district or intermediate district.
(f) Costs for curriculum, materials, professional development, and hands-on-learning experiences to implement
a program within the district or intermediate district to encourage students in any of grades 6 to 12 to consider a
career in education. Not more than 10% of funds received by a district or intermediate district under this section
may be used for this purpose.
(3) An intermediate district may not concurrently receive funding under this section and receive funding under
section 27b for 2022-2023, unless already awarded by the department under section 27b before July 1, 2024. An
intermediate district receiving funding under this section shall not give funding received under this section to a
constituent district that is receiving funding under section 27b.
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(4) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(5) The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended
funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue support
for the grow your own programs under this section. The estimated completion date of the work project is
September 30, 2027.

Sec. 27r. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025
only an amount not to exceed $7,000,000.00 to Kent ISD for the West Michigan Teacher Collaborative as a part
of a consortium of at least 3 intermediate districts. The West Michigan Teacher Collaborative shall use the
funding to implement a grow your own program.
(2) A grow your own program described in this section must be implemented to improve the teacher talent
pipeline and provide a no-cost pathway for support staff members to become certified teachers. Allowable expenses
for grow your own programs under this section include, but are not limited to, all of the following:
(a) Tuition and fees for an accelerated degree, for a traditional bachelor ’s degree for current candidates who
are not teachers, or for an advanced degree. As used in this subdivision, “advanced degree” includes, but is not
limited to, a postbaccalaureate credential or certificate.
(b) Books and supplies.
(c) Testing fees.
(d) Travel to and from coursework.
(e) Substitute employee salary and wages for the duration of the educator preparation program attended by
the recipient staff of the district or intermediate district.
(f) Costs for curriculum, materials, professional development, and hands-on learning experiences to implement
a program within the district or intermediate district to encourage students in grades 6 to 12 to consider a career
in education. Not more than 10% of the funding may be used for this purpose.
(3) In addition to the allowable uses in subsection (2), the West Michigan Teacher Collaborative may use the
money received under this section for any of the following purposes:
(a) Recruiting, retaining, and developing teachers to ensure greater efficacy, satisfaction, and outcomes.
(b) Serving as a convener and model for other local and intermediate school districts interested in developing
and improving grow your own programs.
(c) Engaging in rigorous program evaluation and research so that this state can learn from its investments
and innovations and become a top state for educators.
(4) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(5) The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended
funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue support
for the grow your own programs under this section. The estimated completion date of the work project is
September 30, 2028.

Sec. 28. (1) To recognize differentiated instructional costs for different types of pupils as well as additional
costs to provide essential services in 2025 -2026, the following sections provide a weighted foundation allocation
or an additional payment of some type in the following amounts, as allocated under those sections:
(a) Section 22d, isolated and rural districts, $12,873,100.00.
(b) Section 22l, transportation reimbursement, $125,000,000.00.
(c) Section 29, declining enrollment, $71,000,000.00.
(d) Section 31a, at risk, $1,293,655,000.00.
(e) Section 32d, great start readiness program, $656,217,600.00.
(f) Section 41, bilingual education for English language learners, $62,732,600.00.
(g) Section 51c, special education, mandated percentages, $1,107,900,000.00.
(h) Section 54d, early on, $23,670,700.00.
(i) Section 61a, career and technical education, standard reimbursement, $41,733,800.00.
(j) Section 61d, career and technical education incentives, $13,400,000.00.
(2) The funding described in subsection (1) is not a separate allocation of any funding but is instead a listing
of funding allocated in the sections listed in subsection (1).

Sec. 29. (1) The enrollment stabilization fund is created as a separate account in the state school aid fund for
the purpose of stabilizing the effects of declining enrollment.
43
(2) The state treasurer may receive money or other assets from any source for deposit into the enrollment
stabilization fund. The state treasurer shall direct the investment of the enrollment stabilization fund. The state
treasurer shall credit to the enrollment stabili zation fund interest and earnings from enrollment stabilization
fund investments.
(3) Money in the enrollment stabilization fund at the close of the fiscal year remains in the enrollment
stabilization fund and does not lapse to the state school aid fund or the general fund.
(4) The department of treasury is the administrator of the enrollment stabilization fund for auditing purposes.
(5) Money available in the enrollment stabilization fund must not be expended without a specific
appropriation.
(6) From the enrollment stabilization fund money appropriated under section 11, there is allocated an amount
not to exceed $71,000,000.00 for 2025 -2026 for districts and intermediate districts for which membership in the
immediately preceding fiscal year, as calculated under section 6 in the immediately preceding fiscal year, exceeds
membership in the current fiscal year, as calculated under section 6 in the current fiscal year.
(7) The allocation under subsection (6) must be an amount equal to the sum of the product of .50 and the
district’s or intermediate district ’s membership for the immediately preceding fiscal year, as calculated under
section 6 of the immediately preceding fiscal year, and the product of .50 and the district ’s or intermediate
district’s membership in the current fiscal year, as calculated under section 6 of the current fiscal year, minus the
district’s or intermediate district ’s membership in the current fiscal year, as calculated under section 6 of the
current fiscal year, multiplied by the target foundation allowance for the current fiscal year.

Sec. 30d. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $200,000,000.00 for 2025-2026, and from the general fund money appropriated in section 11, there
is allocated an amount not to exceed $1,600,000.00 for 2025 -2026 only for the purpose of making payments to
participating entities to provide free school lunch and breakfast to public school and nonpublic school pupils in
grades pre-K to 12.
(2) To receive funding under this section, a participating entity must participate in the National School Lunch
Program and must do all of the following:
(a) Provide reimbursable breakfasts and reimbursable lunches at no cost to all students for any school
breakfast program or school lunch program operated by the participating entity.
(b) Submit information regarding the number of reimbursable breakfasts and reimbursable lunches served in
a manner prescribed by the department.
(c) Maximize federal reimbursement for reimbursable breakfasts and reimbursable lunches by operating under
the CEP if the participating entity has an identified student percentage greater than or equal to the minimum
requirement to be eligible to participa te in the CEP. For purposes of this subdivision, all eligible participating
entities must elect CEP on behalf of a single school, a group or groups of schools, or all schools in the participating
entity, as applicable, in a manner that maximizes federal reimbursement.
(d) Meet all applicable state and federal standards in its school breakfast and lunch programs, as determined
by the department.
(e) Take all efforts to maximize and implement policies that require parents or guardians to fill out relevant
family income information, in a manner prescribed by the department, for the purposes of determining student
eligibility for federal free or reduced cost meal reimbursement rates and CEP eligibility determinations.
(f) Forgive all school meal debt related to federally reimbursable meals, as determined by the department.
(3) Participating entities are encouraged to offer meals that meet students’ dietary restrictions, including the
provision of gluten-free meals, vegetarian meals, vegan meals, and, upon request, kosher meals, halal meals, and
meals meeting any allergy restrictions as confirmed by a doctor ’s note. Participating entities are encouraged to
purchase food from Michigan growers when possible and practical.
(4) For each eligible participating entity, the department shall pay an amount equal to the following:
(a) The amount equal to the federal rate per student paid per pupil per free breakfast and lunch under the
Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act,
42 USC 1751 to 1769j, multiplied by the number of breakfasts and lunches provided by the participating entity
to students, less the federal revenue received by the participating entity under the school breakfast program and
the school lunch program under the Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the
Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j, and other state lunch payments received
under section 31d.
(b) The amount equal to the federal rate per student paid per pupil per free breakfast and lunch under the
Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act,
42 USC 1751 to 1769j, multiplied by the number of breakfasts and lunches provided by the participating entity,
as applicable, to children participating in the Great Start Readiness Program under section 32d at the
44
participating entity, less all other federal and state lunch payments made for those children. For purposes of this
subdivision, compliance with 7 CFR 226.9 is required. The department shall assign rates of reimbursement
pursuant to 7 CFR 226.9, at least a nnually, on the basis of family size and income information reported by each
eligible participating entity. Assigned rates of reimbursement must be adjusted annually to reflect changes in the
national average payment rates.
(5) Notwithstanding section 17b, the department may make payments under this section on a schedule
determined by the department.
(6) As used in this section:
(a) “CEP” means the Community Eligibility Provision under the Richard B. Russell National School Lunch
Act, 42 USC 1751 to 1769j.
(b) “Participating entity” means a district, intermediate district, nonpublic school, or the Michigan Schools for
the Deaf and Blind.
(7) In addition to the appropriations in section 11, if the amount allocated in subsection (1) is insufficient to
fully reimburse districts for meals as required in this section, there is appropriated from the school meals reserve
fund created in section 30e the amount necessary to fully fund these reimbursements.

Sec. 31a. (1) There is allocated for 2025-2026 an amount not to exceed $1,336,805,000.00 from the state school
aid fund money appropriated in section 11 and an amount not to exceed $1,500,000.00 from the general fund
money appropriated in section 11 for pa yments to eligible districts and eligible public school academies for the
purposes of ensuring that pupils are proficient in English language arts by the end of grade 3, that pupils are
proficient in mathematics by the end of grade 8, that pupils are atten ding school regularly, that high school
graduates are career and college ready, and for the purposes under subsections (7), (8), and (23).
(2) For a district or public school academy to be eligible to receive funding under this section, other than
funding under subsection (7), (8), or (23), the district or public school academy, for grades K to 12, must comply
with the requirements under section 1280f of the revised school code, MCL 380.1280f, and must use resources to
address early literacy and numeracy, and for at least grades K to 12 or, if the district or public school academy
does not operate all of grades K to 12, for all of the grades i t operates, must implement a multi -tiered system of
supports that is an evidence -based framework that uses data driven problem solving to integrate academic and
behavioral instruction and that uses intervention delivered to all pupils in varying intensitie s based on pupil
needs. The multi-tiered system of supports described in this subsection must provide at least all of the following
essential components:
(a) Team-based leadership.
(b) A tiered delivery system.
(c) Selection and implementation of instruction, interventions, and supports.
(d) A comprehensive screening and assessment system.
(e) Continuous data-based decision making.
(3) From the state school aid fund money allocated under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $1,293,655,000.00 to continue a weighted foundation per pupil payment for districts and
public school academies enrolling econ omically disadvantaged pupils. The department shall pay under this
subsection to each eligible district or eligible public school academy an amount per pupil equal to a percentage
calculated under subsection (4) multiplied by the target foundation allowance for the following, as applicable:
(a) Except as otherwise provided under subdivision (b), (c), or (d) the greater of the following:
(i) The number of membership pupils in the district or public school academy who are determined to be
economically disadvantaged, as reported to the center in the form and manner prescribed by the center not later
than the fifth Wednesday after the pupil membership count day of the immediately preceding fiscal year.
(ii) If the district or public school academy is in the community eligibility program, the number of pupils
determined to be eligible based on the product of the identified student percentage multiplied by the total number
of pupils in the district or public school academy, as reported to the center in the form and manner prescribed by
the center not later than the fifth Wednesday after the pupil membership count day of the immediately preceding
fiscal year. These calculations must be made at the building l evel. This subparagraph only applies to an eligible
district or eligible public school academy for the fiscal year immediately following the first fiscal year in which it
is in the community eligibility program. As used in this subparagraph, “identified student percentage” means the
quotient of the number of pupils in an eligible district or eligible public school academy who are determined to be
economically disadvantaged, as reported to the center in a form and manner prescribed by the center, not later
than the fifth Wednesday after the pupil membership count day in the fiscal year preceding the first fiscal year
in which the eligible district or eligible public school academy is in the community eligibility program, divided by
the total number of pupils counted in an eligible district or eligible public school academy on the pupil membership
count day in the fiscal year preceding the first fiscal year in which the eligible district or eligible public school
academy is in the community eligibility program.
45
(b) If the district or public school academy began operations as a district or public school academy after the
pupil membership count day of the immediately preceding school year, the number of membership pupils in the
district or public school academy who are determined to be economically disadvantaged, as reported to the center
in the form and manner prescribed by the center not later than the fifth Wednesday after the pupil membership
count day of the current fiscal year.
(c) If the district or public school academy began operations as a district or public school academy after the
pupil membership count day of the current fiscal year, the number of membership pupils in the district or public
school academy who are determined to be economically disadvantaged, as reported to the center in the form and
manner prescribed by the center not later than the fifth Wednesday after the supplemental count day of the
current fiscal year.
(d) If, for a particular fiscal year, the number of membership pupils in a district or public school academy who
are determined under subdivision (a) to be economically disadvantaged or to be eligible based on the identified
student percentage varies by mo re than 20 percentage points from the number of those pupils in the district or
public school academy as calculated under subdivision (a) for the immediately preceding fiscal year caused by an
egregious reporting error by the district or public school acad emy, the department may choose to have the
calculations under subdivision (a) instead be made using the number of membership pupils in the district or public
school academy who are determined to be economically disadvantaged, as reported to the center in t he form and
manner prescribed by the center not later than the fifth Wednesday after the supplemental count day of the
immediately preceding fiscal year.
(4) Each district or public school academy must be assigned an opportunity index score each fiscal year, the
value of which is the quotient of the number of economically disadvantaged pupils as determined under
subsection (3) for the district or public school academy and the total number of pupils in the district or public
school academy in the immediately preceding fiscal year, multiplied by 100 and rounded up to the nearest whole
number. Each district or public school academy must be assigned an opportunity index band as follows:
(a) A district or public school academy with an opportunity index score greater than or equal to 0 but less than
20 must be assigned to band 1 and shall receive reimbursement under subsection (3) at a rate of at least 35.0%
and less than 36.0%. The reimbur sement rate under this subdivision must be an amount equal to the district ’s
opportunity index score minus 1, multiplied by the band adjustment factor applicable to this subdivision, plus
35.0%.
(b) A district or public school academy with an opportunity index score greater than or equal to 20 but less
than 44 must be assigned to band 2 and shall receive reimbursement under subsection (3) at a rate of at least
36.0% and less than 37.5%. The reimbu rsement rate under this subdivision must be an amount equal to the
district’s opportunity index score minus 20, multiplied by the band adjustment factor applicable to this
subdivision, plus 36.0%.
(c) A district or public school academy with an opportunity index score greater than or equal to 44 but less
than 59 must be assigned to band 3 and shall receive reimbursement under subsection (3) at a rate of at least
37.5% and less than 39.0%. The reimbu rsement rate under this subdivision must be an amount equal to the
district’s opportunity index score minus 44, multiplied by the band adjustment factor applicable to this
subdivision, plus 37.5%.
(d) A district or public school academy with an opportunity index score greater than or equal to 59 but less
than 73 must be assigned to band 4 and shall receive reimbursement under subsection (3) at a rate of at least
39.0% and less than 42.0%. The reimbu rsement rate under this subdivision must be an amount equal to the
district’s opportunity index score minus 59, multiplied by the band adjustment factor applicable to this
subdivision, plus 39.0%.
(e) A district or public school academy with an opportunity index score greater than or equal to 73 but less
than 85 must be assigned to band 5 and shall receive reimbursement under subsection (3) at a rate of at least
42.0% and less than 47.0%. The reimbu rsement rate under this subdivision must be an amount equal to the
district’s opportunity index score minus 73, multiplied by the band adjustment factor applicable to this
subdivision, plus 42.0%.
(f) A district or public school academy with an opportunity index score greater than or equal to 85 must be
assigned to band 6 and shall receive reimbursement under subsection (3) at a rate of 47.0%.
(g) As used in this subsection, “band adjustment factor” means an amount equal to the difference between the
lowest and highest reimbursement bounds for each band, divided by the number of possible opportunity index
scores in that band.
(5) Except as otherwise provided in this section, a district or public school academy receiving funding under
this section shall use that money only to provide instructional programs and direct noninstructional services,
including, but not limited to, medi cal, mental health, or counseling services, for at -risk pupils; for school health
clinics; and for the purposes of subsection (6), (7), (8), or (23). In addition, a district that is a school district of the
46
first class or a district or public school academy in which at least 50% of the pupils in membership were
determined to be economically disadvantaged in the immediately preceding state fiscal year, as determined and
reported as described in subsection (3), may use the funds it receives under this section for school security or
school parent liaison personnel. The uses of the funds described in the immediately preceding sentence must align
to the needs assessment and the multi -tiered system of supports model and, for funds spent on parent liaison
personnel, must connect parents to the school community. A district or public school academy shall not use any
of the money received under this section for administrative costs. The instruction or direct noninstructi onal
services provided under this section may be conducted before or after regular school hours or by adding extra
school days to the school year.
(6) A district or public school academy that receives funds under this section and that operates a school
breakfast program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds
received under this section an amount, not t o exceed $10.00 per pupil for whom the district or public school
academy receives funds under this section, necessary to pay for costs associated with the operation of the school
breakfast program.
(7) From the state school aid fund money allocated under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $33,000,000.00, to support primary health care services provided to children and adolescents
up to age 21. These funds must be expended in a form and manner determined jointly by the department and the
department of health and human services. When making funding decisions for new adolescent health centers
under this subsection, the department and department of health and human se rvices shall prioritize support for
primary health care services in unserved and underserved counties as determined by the department of health
and human services. An amount equal to 4% of the funds allocated under this subsection must be made available
for technical support and coordination services from a nonprofit organization exclusively dedicated to serving
adolescent health centers in this state and that has a membership that includes federally qualified health centers,
local public health departments, hospital systems, and public school districts. As a requirement of being awarded
the funds under this subsection as prescribed under this subsection, a nonprofit organization described in this
subsection shall make readily available technical support and coordination services to all child and adolescent
health centers in this state.
(8) From the state school aid fund money allocated under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $10,150,000.00 for the state portion of the hearing and vision screenings as described in
part 93 of the public health code, 1 978 PA 368, MCL 333.9301 to 333.9329, and, from the general fund money
allocated under subsection (1), there is allocated for 2025 -2026 an amount not to exceed $1,500,000.00 for the
state portion of the dental screenings as described in part 93 of the public health code, 1978 PA 368, MCL 333.9301
to 333.9329. A local public health department shall pay at least 50% of the total cost of the screenings. The
frequency of the vision screenings must be as required under R 325.13091 to R 325.13096 of the Michigan
Administrative Code and the frequency of the hearing screenings must be as required under R 325.3271 to
R 325.3276 of the Michigan Administrative Code. Funds must be awarded in a form and manner approved jointly
by the department and the department of heal th and human services. Notwithstanding section 17b, the
department shall make payments to eligible entities under this subsection on a schedule determined by the
department.
(9) Each district or public school academy receiving funds under this section shall submit to the department
by July 15 of each fiscal year a report, in the form and manner prescribed by the department, that includes a brief
description of each program conducted or services performed by the district or public school academy using funds
under this section, the amount of funds under this section allocated to each of those programs or services, the
total number of at -risk pupils served by each of those program s or services, and the data necessary for the
department and the department of health and human services to verify matching funds for the temporary
assistance for needy families program. In prescribing the form and manner of the report, the department shal l
ensure that districts are allowed to expend funds received under this section on any activities that are permissible
under this section. If a district or public school academy does not comply with this subsection, the department
shall withhold an amount equal to the August payment due under this section until the district or public school
academy complies with this subsection. If the district or public school academy does not comply with this
subsection by the end of the fiscal year, the withheld funds are forfeited to the school aid fund.
(10) To receive funds under this section, a district or public school academy must allow access for the
department or the department ’s designee to audit all records related to the program for which it receives those
funds. The district or public school academy shall reimburse the state for all disallowances found in the audit.
(11) Subject to subsections (6), (7), (8), and (23), for schools in which more than 40% of pupils are identified as
at-risk, a district or public school academy may use the funds it receives under this section to implement tier 1,
evidence-based practices in schoolwide reforms that are guided by the district’s comprehensive needs assessment
and are included in the district improvement plan. Schoolwide reforms must include parent and community
47
supports, activities, and services, that may include the pathways to potential program created by the department
of health and human services or the communities in schools program. As used in this subsection, “tier 1, evidence-
based practices” means research based instruction and classroom interventions that are available to all learners
and effectively meet the needs of most pupils.
(12) A district or public school academy that receives funds under this section may use those funds to provide
research based professional development and to implement a coaching model that supports the multi -tiered
system of supports framework. Professional development may be provided to district and school leadership an d
teachers and must be aligned to professional learning standards; integrated into district, school building, and
classroom practices; and solely related to the following:
(a) Implementing the multi-tiered system of supports required in subsection (2) with fidelity and utilizing the
data from that system to inform curriculum and instruction.
(b) Implementing section 1280f of the revised school code, MCL 380.1280f, as required under subsection (2),
with fidelity.
(13) A district or public school academy that receives funds under subsection (3) may use funds received under
subsection (3) for support staff providing services to at-risk pupils.
(14) A district or public school academy may use up to 60% of the funds it receives under this section for the
following purposes:
(a) Up to 30% to reduce the teacher to pupil ratio in grades K to 3.
(b) Up to 30% to support retention and recruitment efforts that help reduce staff turnover and vacancies of
instructional and support staff if the district or public school academy is assigned to opportunity index band 4, 5,
or 6.
(15) Funds used as described in subsection (14) must align with the needs assessment and the multi -tiered
system of supports model. A district or public school academy shall not use any of the money described in
subsection (14) for administrative costs or to supplant existing funding, including, but not limited to, maintaining
existing salaries or costs. A district or public school academy shall report its intent to use funds described in
subsection (14) to the department by not later than November 1 of the current fiscal year.
(16) A district or public school academy determined to be eligible to use a portion of funds received under
subsection (3) for the purposes described in subsection (14) retains the ability to use funding for the purposes
described in subsection (14) for th e fiscal year in which eligibility was determined plus 2 additional fiscal years
beyond that fiscal year.
(17) Beginning with the fiscal year ending September 30, 2026, and each year thereafter, for a district receiving
funding under this section through the opportunity index formula, the district must provide a report to parents
or legal guardians that details the amount of funding received under that allocation, how the district distributed
that funding in a way to target buildings with the highest needs, and what evidence -based interventions were
implemented with those dollars. The report must include a method, including contact information, for parents or
legal guardians to provide feedback on the use of these dollars as well as to seek more information about services
and interventions available for their children.
(18) A district or public school academy that receives funds under this section may use up to 10% of the funds
received under this section to provide evidence -based instruction for pre -kindergarten instructional and
noninstructional services to at-risk pupils.
(19) Except as otherwise provided in this subsection, if necessary, the department shall prorate payments
under this section, except payments under subsection (7), (8), or (23), by reducing the amount of the allocation as
otherwise calculated under this section by an equal percentage per district. Subject to the availability of funds, if
proration is necessary under this subsection, the department must ensure that no district receives an amount less
than 11.5% of the target foundation for each economically disadvantaged pupil enrolled in the district.
(20) If a district is dissolved pursuant to section 12 of the revised school code, MCL 380.12, the intermediate
district to which the dissolved district was constituent shall determine the estimated number of pupils that are
economically disadvantaged and that are enrolled in each of the other districts within the intermediate district
and provide that estimate to the department for the purposes of distributing funds under this section within
60 days after the district is declared dissolved.
(21) A district or public school academy that receives funds under this section may use funds received under
this section to provide an anti-bullying or crisis intervention program.
(22) The department shall collaborate with the department of health and human services to prioritize
assigning Pathways to Potential success coaches to elementary schools that have a high percentage of pupils in
grades K to 3 who are not proficient in English l anguage arts, based upon state assessments for pupils in those
grades.
(23) From the state school aid fund money appropriated under section 11, there is allocated for 2023-2024 only
an amount not to exceed $10,000,000.00 for an electronic patient data and health care analytic system to be made
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available to each child and adolescent health center program. The department of health and human services shall
collaborate on system implementation with a nonprofit organization exclusively dedicated to serving child and
adolescent health center programs in this state and that has a membership that includes federally qualified health
centers, local public health departments, hospital systems, and public school districts, including, but not limited
to, technology assessment, design, coordination, and system implementation with child and adolescent health
center programs. Funds appropriated under this subsection are a work project appropriation and any unexpended
funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to continue to
implement an electronic patient data and health care analytic system. The estimated completion date of the work
project is September 30, 2028.
(24) As used in this section:
(a) “At-risk pupil” means a pupil in grades pre-K to 12 for whom the district has documentation that the pupil
meets any of the following criteria:
(i) The pupil is economically disadvantaged.
(ii) The pupil is an English language learner.
(iii) The pupil is chronically absent as defined by and reported to the center.
(iv) The pupil is a victim of child abuse or neglect.
(v) The pupil is a pregnant teenager or teenage parent.
(vi) The pupil has a family history of school failure, incarceration, or substance abuse.
(vii) The pupil is an immigrant who has immigrated within the immediately preceding 3 years.
(viii) The pupil did not complete high school in 4 years and is still continuing in school as identified in the
Michigan cohort graduation and dropout report.
(ix) For pupils for whom the results of the state summative assessment have been received, is a pupil who did
not achieve proficiency on the English language arts, mathematics, science, or social studies content area
assessment.
(x) Is a pupil who is at risk of not meeting the district ’s or public school academy ’s core academic curricular
objectives in English language arts or mathematics, as demonstrated on local assessments.
(b) “Economically disadvantaged” means a pupil who has been determined eligible for free or reduced -price
meals as determined under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769j; who is in a
household receiving supplemental nutrition assistance program or tempora ry assistance for needy families
assistance; or who is homeless, migrant, or in foster care, as reported to the center.
(c) “English language learner ” means limited English proficient pupils who speak a language other than
English as their primary language and have difficulty speaking, reading, writing, or understanding English as
reported to the center.

Sec. 31c. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
only an amount not to exceed $65,000,000.00 for grants to eligible districts for pilot programs to maintain or
establish small classes in grades K to 3 in eligible school buildings in the district.
(2) To be eligible for a grant under subsection (1), a district must have at least 1 eligible school building and
must apply to the department in the form and manner prescribed by the department. A district shall include in
its application a projected budg et for maintaining or establishing small classes in grades K to 3 and shall
demonstrate in the projected budget that at least 30% of the funds received by the district under section 31a will
be used to support small classes under this section.
(3) For a school building to be considered an eligible school building under subsection (2), the school building
must meet all of the following requirements:
(a) Operate at least 1 of grades K to 3.
(b) Be operated by a district that operates all of grades K to 12 and that receives funds under section 31a.
(c) Be located in a district that is in an opportunity index band, as described in section 31a, of 4 or higher.
(4) Not more than 25% of the total allocation under this section may be paid to any single district. The
department shall make allocations under this section to districts that are geographically diverse, including urban,
suburban, and rural districts. Grants issued under this section must be awarded to at least the following districts:
(a) Muskegon Heights Public School Academy System.
(b) Benton Harbor Area Schools.
(c) Flint School District.
(d) Wayne-Westland Community School District.
(5) A district that receives funds under this section shall use the funds to maintain or establish small classes
in grades K to 3 in school buildings of the district for which funds are received under this section. The average
class size must be not more t han 17 pupils per class, with not more than 19 pupils in any particular class. A
district that receives funds under this section shall use at least 30% of the funds the district receives for 2025 -
2026 under section 31a for the purposes of this section.
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(6) Funding to districts under this section for 2025-2026 is intended to be for the first of 2 years of funding.
(7) The funds allocated in this section are a work project appropriation, and any unexpended funds for 2025 -
2026 are carried forward into 2026-2027. The purpose of the work project is to lower class sizes in grades K to 3.
The estimated completion date of the work project is September 30, 2030.
(8) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 31d. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $29,553,400.00 for 2025 -2026 for the purpose of making payments to districts and other eligible
entities under this section.
(2) The amounts allocated from state sources under this section are used to pay the amount necessary to
reimburse districts for 6.0127% of the necessary costs of the state mandated portion of lunch programs provided
by those districts. The department shall calculate the amount due to each district under this section using the
methods of calculation adopted by the Michigan supreme court in the consolidated cases known as Durant v State
of Michigan, 456 Mich 175 (1997).
(3) The payments made under this section include all state payments made to districts so that each district
receives at least 6.0127% of the necessary costs of operating the state mandated portion of the lunch program in
a fiscal year.
(4) The payments made under this section to districts and other eligible entities that are not required under
section 1272a of the revised school code, MCL 380.1272a, to provide a lunch program must be in an amount not
to exceed $10.00 per eligible pupil p lus 5 cents for each free lunch and 2 cents for each reduced price lunch
provided, as determined by the department.
(5) From the federal funds appropriated in section 11, there is allocated for 2025 -2026 all available federal
funding, estimated at $901,400,000.00 for child nutrition programs and, for 2025 -2026, all available federal
funding, estimated at $22,000,000.00, for food distribution programs.
(6) Notwithstanding section 17b, the department shall make payments to eligible entities other than districts
under this section on a schedule determined by the department.
(7) In purchasing food for a lunch program funded under this section, a district or other eligible entity shall
give preference to food that is grown or produced by Michigan businesses if it is competitively priced and of
comparable quality.
(8) In addition to the appropriations in section 11, if the amount allocated in subsection (1) is insufficient to
fully reimburse districts for meals as required under this section, there is appropriated from the school meals
reserve fund created under section 30e the amount necessary to fully fund these reimbursements.

Sec. 31f. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not
to exceed $16,900,000.00 for 2025-2026 for the purpose of making payments to districts to reimburse for the cost
of providing breakfast.
(2) The funds allocated under this section for school breakfast programs are made available to all eligible
applicant districts that meet all of the following criteria:
(a) The district participates in the federal school breakfast program and meets all standards as prescribed by
7 CFR parts 210, 220, 225, 226, and 245.
(b) Each breakfast eligible for payment meets the federal standards described in subdivision (a).
(3) The payment for a district under this section is at a per meal rate equal to the lesser of the district’s actual
cost or 100% of the statewide average cost of a meal served, as determined and approved by the department, less
federal reimbursement, participant payments, and state breakfast reimbursements received under section 30d.
The department shall determine the statewide average cost using costs as reported in a manner approved by the
department for the preceding school year.
(4) Notwithstanding section 17b, the department may make payments under this section pursuant to an
agreement with the department.
(5) In purchasing food for a school breakfast program funded under this section, a district shall give preference
to food that is grown or produced by Michigan businesses if it is competitively priced and of comparable quality.
(6) In addition to the appropriations in section 11, if the amount allocated in subsection (1) is insufficient to
fully reimburse districts for meals as required under this section, there is appropriated from the school meals
reserve fund created under section 30e the amount necessary to fully fund these reimbursements.

Sec. 31n. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
for the purposes of this section an amount not to exceed $106,545,000.00 and from the general fund money
appropriated in section 11, there is al located for 2025 -2026 for the purposes of this section an amount not to
50
exceed $1,300,000.00. The department and the department of health and human services shall continue a program
to distribute this funding to add licensed behavioral health providers for general education pupils, and recipients
of the funds under subsection (6) shall continue to seek federal Medicaid match funding for all eligible mental
health and support services.
(2) The department and the department of health and human services shall maintain an advisory council for
programs funded under this section and any other funding under this act to improve or maintain the mental
health of students, except for programs fund ed under section 31a(7) and (8). The advisory council shall define
goals for implementation of programs, and shall provide feedback on that implementation. At a minimum, the
advisory council shall consist of representatives of state associations representi ng school health, school mental
health, school counseling, education, health care, and other organizations, representatives from the department
and the department of health and human services, and a representative from the school safety and mental health
commission. The department and department of health and human services, working with the advisory council,
shall determine an approach to increase capacity for mental health and support services in schools for general
education pupils, and shall determine w here that increase in capacity qualifies for federal Medicaid match
funding.
(3) The advisory council shall develop a fiduciary agent checklist for intermediate districts to facilitate
development of a plan to submit to the department and to the department of health and human services. The
department and department of health and hu man services shall determine the requirements and format for
intermediate districts to submit a plan for possible funding under subsection (6). The department shall make
applications for funding for this program available to districts and intermediate dist ricts by not later than
December 1 of each fiscal year for which funds are allocated under this section and shall award the funding by
not later than February 1 of each fiscal year for which funds are allocated under this section.
(4) The department of health and human services shall amend the state Medicaid plan to obtain appropriate
Medicaid waivers as necessary for the purpose of generating additional Medicaid match funding for school mental
health and support services for general education pupils, and this expansion is called Caring for Students (C4S).
(5) From the state school aid fund money allocated under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $14,300,000.00 to be distributed to the network of child and adolescent health centers to
place a licensed master’s level behavioral health provider in schools that do not currently have services available
to general education students. Child and adolescent health centers that are part of the network described in this
subsection shall provide a commitment to maintain services and implement all available federal Medicaid match
methodologies. The department of health and human services shall use all existing or additional federal Medicaid
match opportunities to maximize funding allocated under this subsection. The department shall p rovide funds
under this subsection to child and adolescent health centers that are part of the network described in this
subsection in the same proportion that funding under section 31a(7) is provided to child and adolescent health
centers that are part of the network described in this subsection and that are located and operating in those
districts. A payment from funding allocated under this subsection must not be paid to an entity that is not part
of the network described in this subsection.
(6) From the state school aid fund money allocated under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $87,245,000.00 to be distributed to intermediate districts for the provision of mental health
and support services to general education students. Recipients of funds under this subsection shall continue to
seek federal Medicaid match funding for all eligible mental health and support services. If a district or
intermediate district is not able to procure the services of a licensed master’s level behavioral health provider, the
district or intermediate district shall notify the department and the department of health and human services
and, if the department and department of health and human services verify that the district or intermediat e
district attempted to procure services from a master’s level behavioral health provider and was not able to do so,
then the district or intermediate district may instead procure services from a provider with less than a master ’s
degree in behavioral health. To be able to use the exemption in the immediately preceding sentence, the district
or intermediate district must submit evidence satisfactory to the department and department of health and
human services demonstrating that the district or intermediate district took measures to procure the services of
a licensed master’s level behavioral health provider but was unable to do so, and the department and department
of health and human services must be able to verify this evidence. From the first $5 6,173,600.00 of the funds
allocated under this subsection, the department shall distribute up to $1,003,100.00 for 2025 -2026 to each
intermediate district that submits a plan approved by the department and the department of health and human
services by February 1 of each fiscal year for which funds are allocated under this section. The department shall
distribute the remaining $31,071,400.00 of the funds allocated under this subsection for 2025 -2026 to
intermediate districts on an equal per -pupil basis based on the combined total number of pupils in membership
in the intermediate district and its constituent districts, including public school academies that are considered to
be constituent districts under section 705(7) of the revised school code, MCL 380.70 5. The department and
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department of health and human services shall work cooperatively in providing oversight and assistance to
intermediate districts and shall monitor the program upon implementation. An intermediate district shall use
funds awarded under this subsection to pr ovide funding to its constituent districts, including public school
academies that are considered to be constituent districts under section 705(7) of the revised school code,
MCL 380.705, for the provision of mental health and support services to general e ducation students. In addition
to the criteria identified under subsection (9), an intermediate district shall consider geography, cost, or other
challenges when awarding funding to its constituent districts. Districts receiving funding under this subsecti on
are encouraged to provide suicide prevention and awareness education and counseling.
(7) If funding awarded to an intermediate district remains after funds are provided by the intermediate district
to its constituent districts, the intermediate district shall notify the department and department of health and
human services and submit evidence satisfactory to the department and department of health and human services
demonstrating how it would like to use funds for purposes other than hiring licensed behavioral health providers
for general education pupils. With permission from the department and department of health and human services,
the intermediate district may hire or contract for experts to provide mental health and support services to general
education students residing within the boundaries of the intermediate district, including, b ut not limited to,
expanding, hiring, or contracting for staff and experts to provide those services directly or to increase access to
those services through coordination with outside mental health agencies; the intermediate district may also
contract with 1 or more other intermediate districts for coordination and the facilitation of activities related to
providing mental health and support services to general education students residing within the boundaries of the
intermediate district; the intermediate district may also use the funds under this section to create or strengthen
school-based behavioral health assessment teams that focus on providing age -appropriate interventions,
identifying behaviors that suggest a pupil may be struggling with mental health challenges, providing treatment
and support of the pupil, and using disciplinary interventions and the criminal justice system as methods of last
resort; and the intermediate district may also use the funds under this section to provide evidence-based trainings
that support student mental health.
(8) If funding awarded to an intermediate district under this section remains unspent, or if the intermediate
district submits an application requesting a lower allocation than the maximum amount permitted, the
department, in conjunction with the intermedi ate district, may reallocate the funds to another intermediate
district or other intermediate districts capable of expending the funds before the funding deadline in accordance
with this section as if those funds were originally allocated to the intermedia te district or intermediate districts
to which the funds are being reallocated.
(9) A district requesting funds under this section from the intermediate district in which it is located shall
submit an application for funding for the provision of mental health and support services to general education
pupils. A district receiving funding from the application process described in this subsection shall provide services
to nonpublic students upon request. An intermediate district shall not discriminate against an application
submitted by a public school academy simply on the basis of the a pplicant being a public school academy. The
department shall approve grant applications based on the following criteria:
(a) The district’s commitment to maintain mental health and support services delivered by licensed providers
into future fiscal years.
(b) The district’s commitment to work with its intermediate district to use funding it receives under this section
that is spent by the district for general education pupils toward participation in federal Medicaid match
methodologies. A district must provide a local match of at least 20% of the funding allocated to the district under
section 31n.
(c) The district’s commitment to adhere to any local funding requirements determined by the department and
the department of health and human services.
(d) The extent of the district’s existing partnerships with community health care providers or the ability of the
district to establish such partnerships.
(e) The district’s documentation of need, including gaps in current mental health and support services for the
general education population.
(f) The district ’s submission of a formal plan of action identifying the number of schools and students to be
served.
(g) Whether the district will participate in ongoing trainings.
(h) Whether the district will submit an annual report to the state.
(i) Whether the district demonstrates a willingness to work with the state to establish program and service
delivery benchmarks.
(j) Whether the district has developed a school safety plan or is in the process of developing a school safety
plan.
(k) Any other requirements determined by the department or the department of health and human services.
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(10) Funding under this section, including any federal Medicaid funds that are generated, must not be used to
supplant existing services.
(11) Both of the following are allocated to the department of health and human services from the general fund
money allocated under subsection (1):
(a) For 2025-2026, an amount not to exceed $1,000,000.00 for the purpose of upgrading technology and systems
infrastructure and other administrative requirements to support the programs funded under this section.
(b) For 2025-2026, an amount not to exceed $300,000.00 for the purpose of administering the programs under
this section and working on generating additional Medicaid funds as a result of programs funded under this
section.
(12) From the state school aid fund money allocated under subsection (1), there is allocated for 2025 -2026 an
amount not to exceed $5,000,000.00 to intermediate districts on an equal per intermediate district basis for the
purpose of administering programs funded under this section. Recipients of the funds under this subsection shall
continue to seek federal Medicaid match funding for all eligible mental health and support services and
participate in all learning collaboratives about C4S required by the dep artment and department of health and
human services.
(13) The department and the department of health and human services shall work with the advisory council
to develop proposed measurements of outcomes and performance. Those measurements must include, at a
minimum, the number of pupils served, the number of schools served, and where those pupils and schools were
located. The department and the department of health and human services shall compile data necessary to
measure outcomes and performance, and districts and intermediate districts receiving funding under this section
shall provide data requested by the department and department of health and human services for the
measurement of outcomes and performance. The department and department of health and human services shall
provide an annual report by not la ter than December 1 of each year to the house and senate appropriations
subcommittees on school aid and health and human services, to the house and senate fiscal agencies, and to the
state budget director. At a minimum, the report must include measurements of outcomes and performance,
proposals to increase efficacy and usefulness, proposals to increase performance, and proposals to expand
coverage.
(14) A district or intermediate district that receives funding directly or indirectly under this section may carry
over any unexpended funds received under this section for up to 2 fiscal years beyond the fiscal year in which the
funds were received.

Sec. 31aa. (1) From the state school aid fund money appropriated in section 11, there is allocated
$300,000,000.00 for 2025 -2026 only, and from the general fund money appropriated in section 11, there is
allocated $21,000,000.00 for 2025-2026 only, to support school safety and mental health.
(2) From the state school aid fund money allocated in subsection (1), an amount not to exceed $200,000,000.00,
and from the general fund money allocated in subsection (1), an amount not to exceed $14,000,000.00 may be used
to provide payments to districts, intermediate districts, nonpublic schools, and the Michigan Schools for the Deaf
and Blind that opt in and agree to receive funding under this subsection, for activities to improve student mental
health and improve student safety. The allowable expenditures of funds under this subsection are as follows:
(a) Hiring or contracting for support staff for student mental health needs, including, but not limited to, school
psychologists, social workers, counselors, and school nurses.
(b) Purchasing and implementing mental health screening tools.
(c) Purchasing a statewide, integrated technology platform that streamlines behavioral health documentation
and care coordination.
(d) Providing school-based mental health personnel access to consultation with behavioral health clinicians to
respond to complex student mental health needs.
(e) Purchasing and implementing an online behavioral health tool moderated and led by licensed behavioral
health professionals.
(f) Hiring or contracting a behavioral health coordinator.
(g) Evidence-based trainings to support mental health.
(h) Costs associated with collaboration between school employees, families, and community partners to address
the academic, behavioral, and social needs of all students through collaborative partnerships, resource
coordination, data collection, and data sharing.
(i) Costs associated with conducting a systematic school mental health needs assessment and resource
mapping that identifies programmatic and systemic needs and helps staff determine priorities and create action
plans.
(j) Coordination with local law enforcement.
(k) Training for school staff on threat assessment.
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(l) Training for school staff and students on threat response.
(m) Training for school staff on crisis communication.
(n) Safety infrastructure, including, but not limited to, cameras, door blocks, hardened vestibules, window
screening, and technology necessary to operate buzzer systems. This may also include firearm detection software
that integrates to existing security cameras to detect and alert school personnel and first responders to visible
firearms on school property.
(o) Age -appropriate training for students and families on responsible firearm ownership, including safe
handling and safe storage of firearms.
(p) School resource officers and safety dogs. School resource officers hired under this subsection must be
properly licensed and in good standing with the Michigan commission on law enforcement standards, and must
be in compliance with all applicable laws.
(q) Student Safety Management System, the information technology platform and related services to improve
student safety by mitigating cyberbullying, school violence, human trafficking, and self -harm that supports
students from grades K to 12.
(r) A secure platform, administered by the department of state police, for school officials, emergency
responders, and emergency management coordinators to house all school safety-related items, including, but not
limited to, EOP templates, EOP guidance, r eference documents, and security assessments. The platform should
use existing password -protected access control methods schools currently utilize and, to the extent possible, be
capable of integrating with existing platforms or technologies used by distri cts for school safety. Through
permissions-based access control, the platform should be able to relay information clearly and in real time to each
person or entity necessary to provide a unified response to a safety incident, or to take appropriate action in
response to an anticipated disruption to the normal functions of the surrounding community.
(s) Emergency infrastructure needs to respond to an immediate threat to the health or safety of students and
staff in the district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind. A
district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind shall not expend
funds for this purpose without first obtaining approval from the department. In making a determination of
approval, the department shall, at a minimum, assess whether the dis trict, intermediate district, nonpublic
school, or the Michigan Schools for the Deaf and Blind is responding to an immediate threat to the health or safety
of students and staff, and whether the district, intermediate district, nonpublic school, or the Michigan Schools
for the Deaf and Blind has other sources of funding that should be utilized first.
(t) A contract with a vendor for a comprehensive safety and security assessment or a comprehensive safety
and security event assessment in schools operated by the district, intermediate district, nonpublic school, or the
Michigan Schools for the Deaf and Blind.
(u) An emergency response system.
(v) Implementing cell phone free school policies. As used in this subdivision, “cell phone free school policy ”
means a policy that prohibits students from accessing or using a personal communication device capable of
telecommunication or digital communication during instructional time, as determined by the school.
(3) By not later than December 31 of each fiscal year, from the state school aid fund money allocated in
subsection (1), the department shall make payments to districts, intermediate districts, and the Michigan Schools
for the Deaf and Blind that opt in an d agree to receive funding in an equal amount per pupil based on the total
number of pupils in membership in each district, intermediate district, and the Michigan Schools for the Deaf and
Blind that opts in and agrees to receive funding. By December 31 of each fiscal year, from the general fund money
allocated in subsection (2), the department shall make payments to nonpublic schools that opt in and agree to
receive funding in an equal amount per pupil based on the total number of pupils in membership in each nonpublic
school that opts in and agrees to receive funding, using pupil counts determined by the department. The
department shall ensure that the amount per pupil paid to nonpublic schools does not exceed the amount per
pupil paid to districts and int ermediate districts. Districts, intermediate districts, the Michigan Schools for the
Deaf and Blind, and nonpublic schools may opt in and agree to receive funding in a form and manner determined
by the department.
(4) From the state school aid fund money allocated in subsection (1), there is allocated an amount not to exceed
$50,000,000.00, and from the general fund money allocated in subsection (1), there is allocated an amount not to
exceed $3,500,000.00 for compe titive grants to districts, intermediate districts, and nonpublic schools for school
resource officers and safety dogs. To receive funding under this subsection, a district, intermediate district, or
nonpublic school must apply for funding to the department in a form and manner prescribed by the department.
The department shall prioritize applicants who include a spending plan to sustain salaries after grant funding
has concluded. Recipients of funding under this subsection shall ensure that any school resource officer hired with
these funds has completed training by the Michigan commission on law enforcement standards.
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(5) From the state school aid fund money allocated in subsection (1), there is allocated an amount not to exceed
$50,000,000.00 and from the general fund money allocated in subsection (1), there is allocated an amount not to
exceed $3,500,000.00 for compet itive grants to districts, intermediate districts, and nonpublic schools to hire or
contract for support staff for student mental health needs, including, but not limited to, school psychologists,
social workers, and counselors. To receive funding under th is subsection, a district, intermediate district, or
nonpublic school must apply for funding to the department in a form and manner prescribed by the department.
The department shall prioritize applicants that include a spending plan to sustain salaries af ter grant funding
has concluded.
(6) Recipients of funding under this section must provide a final expense report to the department by July 1 of
each fiscal year. If the department determines that the eligible recipient has misused the funds allocated under
this section, the eligible recipient shall reimburse the department for the amount of state funding misused.
(7) The department shall use the information received under subsection (6) to compile a report that includes
the number of recipients that have hired school resource officers using funds received under this section and any
supporting information provided by the recipients. By not later than August 1 of each year, the department shall
provide the report compiled under this subsection to the senate and house appropriations subcommittees on school
aid, the senate and ho use fiscal agencies, the senate and house policy offices, the state budget office, and the
Michigan commission on law enforcement standards.
(8) Districts receiving funds under this section must coordinate with intermediate districts to avoid duplication
of services and to streamline delivery of services to students.
(9) To receive funding under this section, a district, an intermediate district, a nonpublic school, or the
Michigan Schools for the Deaf and Blind must agree to be subject to a comprehensive investigation, must
affirmatively agree to waive any privilege that may otherwise protect information from disclosure in the event of
a mass casualty event, and must agree to comply with a comprehensive investigation. All of the following apply
to a comprehensive investigation described in this subsection:
(a) The comprehensive investigation will assess the circumstances surrounding the mass casualty event,
including, but not limited to:
(i) Emergency response effectiveness.
(ii) Compliance with safety protocols.
(iii) Communication procedures.
(iv) Any factors contributing to the incident.
(b) The governor shall designate an appropriate person or investigative entity to conduct the comprehensive
investigation. This person or investigative entity may include, but is not limited to, state law enforcement
agencies, independent review boards, or specially appointed task forces. The person or designated investigative
entity has the authority to do all of the following:
(i) Access relevant records and data from the district.
(ii) Interview witnesses and district personnel involved.
(iii) Issue findings and recommendations based on the investigation.
(c) The person or investigative entity designated in subdivision (b) shall prepare a detailed report of its findings
and submit the report to the governor and relevant legislative committees within 90 days following the conclusion
of the investigation. The report must include recommendations for preventing future incidents and improving
school safety protocols.
(10) Funds allocated under subsection (4) for 2025-2026 are a work project appropriation, and any unexpended
funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to continue providing
funding to support districts, intermediate districts, and nonpublic schools in having school resource officers. The
estimated completion date of the work project is September 30, 2029.
(11) Funds allocated under subsection (5) for 2025-2026 are a work project appropriation, and any unexpended
funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to continue providing
funding to support districts, intermediate districts, and nonpublic schools in hiring staff to support student mental
health. The estimated completion date of the work project is September 30, 2029.
(12) As used in this section:
(a) “Mass casualty event ” means any of the following that occur on school grounds or at a school -sponsored
event:
(i) An incident resulting in significant injuries to not fewer than 3 individuals.
(ii) An incident resulting in fatalities.
(iii) An incident that exceeds the normal resources for emergency response available in the jurisdiction where
the incident takes place.
(iv) An incident that results in a sudden and timely surge of injured individuals necessitating emergency
services.
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(b) “Safety dog ” means a dog that is contracted by a law enforcement agency of this state, a local unit of
government of this state, or a district or an intermediate district and that is trained for detection of firearms,
explosives, narcotics, or vape substances.
(c) “School grounds” means all properties owned or operated by the district, including transportation vehicles
owned or operated by the district.
(d) “School-sponsored event” means any activity organized or sanctioned by the district.
(13) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 32d. (1) From the state school aid fund money appropriated in section 11, there is allocated to eligible
intermediate districts and consortia of intermediate districts for great start readiness programs an amount not
to exceed $609,720,000.00 for 2024-2025 and $638,217,600.00 for 2025 -2026. From the general fund money
appropriated under section 11, there is allocated $600,000.00 for 2024 -2025 and $350,000.00 for 2025-2026, and
from the great start readiness reserve fund money appropriated in section 11 , there is allocated $18,000,000.00
for 2024 -2025 and 2025 -2026 for the purposes of this section. For 2024 -2025, an intermediate district or
consortium shall use funds allocated under this section for great start readiness programs to provide part -day
programs, school-day programs, GSRP exte nded programs, GSRP/Head Start school -day blended programs, or
GSRP/Head Start extended blended programs that are comprehensive, free, compensatory classroom programs
designed to improve the readiness and subsequent achi evement of children who meet the participant eligibility
and prioritization guidelines as defined by the department of lifelong education, advancement, and potential. For
2025-2026, an intermediate district or consortium shall use funds allocated under thi s section for eligible great
start readiness program options. For a child to be eligible to participate in a program under this section, the child
must be at least 4, but less than 5, years of age as of September 1 of the school year in which the program i s
offered and must meet those eligibility and prioritization guidelines. After eligible children who will be 4 years of
age as of September 1 are enrolled, a child who is not 4 years of age as of September 1, but who will be 4 years of
age by not later than December 1, is eligible to participate if both of the following are met:
(a) The child’s parent or legal guardian seeks a waiver from the September 1 eligibility date by submitting a
request for enrollment in a program to the responsible intermediate district.
(b) The child meets eligibility and prioritization guidelines.
(2) From the state school aid fund money allocated under subsection (1), an amount not to exceed
$597,720,000.00 for 2024-2025 and $626,217,600.00 for 2025 -2026 is allocated to intermediate districts or
consortia of intermediate districts based on the formula in section 39. An intermediate district or consortium of
intermediate districts receiving funding under this section shall act as the fiduciary for the great start readiness
programs. An intermediate district or consortium of intermediate districts rec eiving funding under this section
may collaborate with local governments to identify children eligible for programs funded under this section and
may contract with local governments to provide services. To be eligible to receive funds allocated under this
subsection from an intermediate district or consortium of intermediate districts, a district, a consortium of
districts, a local government, or a public or private for-profit or nonprofit legal entity or agency must comply with
this section and section 39. For 2024-2025, if, due to the number of GSRP extended program or GSRP/Head Start
extended blended program slots awarded, the amount allocated in this subsection is insufficient to award at least
the same number of part -day program and school -day program s lots as awarded in the immediately preceding
fiscal year, there is appropriated from the great start readiness program reserve fund the amount necessary to
fully award the same number of part -day program and full -day program slots as awarded in the immedia tely
preceding fiscal year. For 2025 -2026, if the amount allocated in this subsection is insufficient to fully fund
allocations calculated under section 39, there is appropriated from the great start readiness program reserve fund
the amount necessary and available to fully fund those allocations.
(3) From the general fund money allocated under subsection (1), there is allocated an amount not to exceed
$600,000.00 for 2024-2025 and an amount not to exceed $350,000.00 for 2025 -2026 for a competitive grant to
continue a longitudinal evaluation of children who have participated in great start readiness programs.
(4) Except as otherwise provided in subsection (5), to be eligible for funding under this section, a program must
prepare children for success in school through comprehensive part -day programs, school -day programs, GSRP
extended programs, GSRP/Head Start s chool-day blended programs, GSRP/Head Start extended blended
programs, or other eligible great start readiness program options that contain all of the following program
components, as determined by the department of lifelong education, advancement, and potential:
(a) Participation in a collaborative recruitment and enrollment process to ensure that each child is enrolled in
the program most appropriate to the child’s needs and to maximize the use of federal, state, and local funds. For
2025-2026, as part of this requirement, programs receiving funding under this section must provide current
enrollment data, including slots open for enrollment and slots filled, to the intermediate district or consortium of
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intermediate districts from which funding is received for that program. The enrollment process must ensure that
children in families with lower income and children with other risk factors, as determined by the department of
lifelong education, advancement, and potential, are enrolled before children with lesser needs.
(b) An age -appropriate educational curriculum that is in compliance with the early childhood standards of
quality for birth to kindergarten children adopted by the state board, including, at least, the Connect4Learning
curriculum.
(c) Nutritional services for all program participants supported by federal, state, and local resources as
applicable.
(d) Physical and dental health and developmental screening services for all program participants.
(e) Referral services for families of program participants to community social service agencies, including
mental health services, as appropriate.
(f) Active and continuous involvement of the parents or guardians of the program participants.
(g) A plan to conduct and report annual great start readiness program evaluations and continuous
improvement plans using criteria approved by the department of lifelong education, advancement, and potential.
(h) Participation in a school readiness advisory committee convened as a workgroup of the great start
collaborative that provides for the involvement of classroom teachers, parents or guardians of program
participants, and community, volunteer, and social service agencies and organizations, as appropriate. The
advisory committee shall annually review and make recommendations regarding the program components listed
in this subsection. The advisory committee also shall make recommendations to the great start collaborative
regarding other community services designed to improve all children’s school readiness.
(i) The ongoing articulation of the kindergarten and first grade programs offered by the program provider.
(j) Participation in this state’s great start to quality process with a level of at least enhancing quality level.
(5) To help expand access to great start readiness programs, the department of lifelong education,
advancement, and potential may waive the requirements under subsections (4) and (8)(c) and a program may be
eligible for funding under this section for new o r expanding programs if the program demonstrates to the
satisfaction of the department of lifelong education, advancement, and potential that the program meets all of the
following:
(a) Is a licensed group or child care center or is a licensed program.
(b) Provides the minimum instructional time as required by the department of lifelong education,
advancement, and potential.
(c) Participates in this state’s quality improvement system at a level determined by the department of lifelong
education, advancement, and potential.
(d) Implements a professional educator preparation plan, as defined by the department of lifelong education,
advancement, and potential, for educators not meeting teacher credentialing standards described in subsection (8)
or (9).
(e) Uses a developmentally appropriate curriculum, as determined by the department of lifelong education,
advancement, and potential.
(f) Conducts a developmental screening and referral process, as determined by the department of lifelong
education, advancement, and potential.
(g) Commits to participating in program financial review and monitoring, as determined by the department of
lifelong education, advancement, and potential.
(h) Provides a plan to implement an approved great start readiness program curriculum and meet additional
great start readiness program standards, as determined by the department of lifelong education, advancement,
and potential.
(6) A waiver under subsection (5) may be granted for up to 3 years for requirements related to program
credentialing and may be granted for up to 2 years for all other requirements, as determined by the department
of lifelong education, advancement, and potential.
(7) The department of lifelong education, advancement, and potential shall provide a report to the house and
senate appropriations subcommittees on school aid, the state budget director, and the house and senate fiscal
agencies that summarizes the number and types of exemptions granted under subsection (5) and progress made
by programs granted waivers under subsection (5) by September 30 of each fiscal year. It is the intent of the
legislature to review the waiver allowability under subsection (5) before th e fiscal year ending September 30,
2027.
(8) For applications submitted before September 30, 2025, an application for funding under this section must
provide for the following, in a form and manner determined by the department of lifelong education, advancement,
and potential:
(a) Ensure either of the following:
(i) That the applicant complies with all program components described in subsection (4).
(ii) That the applicant meets the requirements of a waiver under subsection (5).
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(b) Except as otherwise provided in this subdivision, ensure that children participating in an eligible great
start readiness program for whom the intermediate district is receiving funds under this section are children who
live with families with a household income that is equal to or less than 400% of the federal poverty guidelines. If
the intermediate district determines that all eligible children are being served and that there are no children on
the waiting list who live with families with a household income that is equal to or less than 400% of the federal
poverty guidelines, the intermediate district may then enroll children who live with families with a household
income that is greater than 400% of the federal poverty guidelines. The enrollment process must consider income
and risk factors, such that children determined with higher need are enrolled before children with lesser need.
For purposes of this subdivision, all age -eligible children served in foster care or who are experiencing
homelessness or who have individualized education programs recommending placement in an inclusive preschool
setting are considered to live with families with household income equal to or less than 400% of the federal poverty
guidelines regardless of actual family income and are prioritized for enrollment within the lowest quintile. The
department of lifelong education, advancement, and potential shall publish the household income thresholds
under this subdivision in a clear manner on its website and the great start to quality website.
(c) Except as provided in subsection (5), ensure that the applicant only uses qualified personnel for this
program, as follows:
(i) Teachers possessing proper training. A lead teacher must have a valid Michigan teaching certificate with
an early childhood or lower elementary endorsement or a bachelor’s or higher degree in child development or early
childhood education with specialization in preschool teaching. However, except as otherwise provided in this
subparagraph, if an applicant demonstrates to the department of lifelong education, advancement, and potential
that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, teachers or
paraprofessionals with at least 5 years of experience as a paraprofessional in a great start readiness program,
Head Start, or licensed child care center classroom who have significant but incomplete training in early childhood
education or child development may be used if the applicant provides to the department of lifelong education,
advancement, and potential, and the department of lifelong education, advancement, and potential approves, a
plan for each teacher to come into compliance with the standards in this subparagraph. Individuals may qualify
with at least 3 years of experience and significant training in early childhood education or child development,
based on the recommendation of the intermediate distric t after a classroom observation. A teacher ’s compliance
plan must be completed within 3 years of the date of employment. Progress toward completion of the compliance
plan consists of at least 2 courses per calendar year.
(ii) Paraprofessionals possessing proper training in early childhood education, including an associate degree
in early childhood education or child development or the equivalent, or a child development associate (CDA)
credential. However, if an applicant demo nstrates to the department of lifelong education, advancement, and
potential that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, the
applicant may use paraprofessionals who have completed at least 1 course that earns college credit in early
childhood education or child development or enroll in a child development associate credential with at least
6 months of verified experience in early education and care, if the applicant provides to the department of lifelong
education, advancement, and potential, and the department of lifelong education, advancement, and potential
approves, a plan for each parapro fessional to come into compliance with the standards in this subparagraph. A
paraprofessional’s compliance plan must be completed within 3 years of the date of employment. Progress toward
completion of the compliance plan consists of at least 2 courses, 60 clock hours, or an equivalent of training per
calendar year.
(d) Include a program budget that contains only those costs that are not reimbursed or reimbursable by federal
funding, that are clearly and directly attributable to the great start readiness program, and that would not be
incurred if the program were not being offered. Eligible costs include transportation costs. The program budget
must indicate the extent to which these funds will supplement other federal, state, local, or private funds. An
applicant shall not use funds received under this section to supp lant any federal funds received by the applicant
to serve children eligible for a federally funded preschool program that has the capacity to serve those children.
(9) Beginning in 2025-2026, applications for funding under this section must be submitted to the department
of lifelong education, advancement, and potential in a form and manner determined by the department of lifelong
education, advancement, and potentia l. The application must demonstrate, at a minimum, compliance with
program requirements described in subsection (4) or (5) and must ensure that recipients will only utilize qualified
personnel, as determined by the department of lifelong education, advance ment, and potential, for eligible great
start readiness program options.
(10) For a grant recipient that enrolls pupils in a school-day program or GSRP extended program funded under
this section, each child enrolled in the school-day program or GSRP extended program is counted as described in
section 39 for purposes of determin ing the amount of the grant award. This subsection does not apply after
September 30, 2025.
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(11) For a grant recipient that enrolls pupils in an eligible great start readiness program option that blends
GSRP and Head Start programming, the grant recipient shall ensure that all Head Start and GSRP policies and
regulations are applied to the blended slots, with adherence to the highest standard from either program, to the
extent allowable under federal law. A grant recipient may request a waiver from the department of lifelong
education, advancement, and potential to align GSRP policies and regulations with Head Start national standards
for quality, including ratios, and the department of lifelong education, advancement, and potential may approve
the waiver. Not later than March 1 of each year, the department of lifelong education, advancement, and potential
will report to the legislature and post on a publicly available website a list by intermediate district or consortium
with the number and type of each waiver requested and approved.
(12) To help expand access to great start readiness programs, the department of lifelong education,
advancement, and potential may allow great start readiness programs to implement Head Start national
performance standards for quality as an alternative to great start readiness program policies and regulations if
the great start readiness program demonstrates to the satisfaction of the department of lifelong education,
advancement, and potential that the great start readiness program is meeting the requirements of the Head Start
national performance standards.
(13) Beginning in 2025-2026, an intermediate district or consortia of intermediate districts receiving funding
under this section must publish, on an easily accessible website, a data dashboard containing the number of
allocations requested from the state, a list of programs offering great start readiness programs in their
boundaries, and current enrollment data for each subr ecipient, including total slots open for enrollment, slots
filled, and waitlist information, if applicable. A link to this website must be provided to families on waitlists for
any great start readiness program in their boundaries.
(14) An intermediate district or consortium of intermediate districts receiving a grant under this section shall
designate an early childhood coordinator, and may provide services directly or may contract with 1 or more
districts or public or private for -profit or nonprofit providers that meet all requirements of subsection (4), (8), or
(9), as applicable.
(15) An intermediate district or consortium of intermediate districts may retain for administrative services
provided by the intermediate district or consortium of intermediate districts an amount not to exceed 4% of the
grant amount. Expenses incurred by subrecipients engaged by the intermediate district or consortium of
intermediate districts for directly running portions of the program are considered program costs or a contracted
program fee for service. Subrecipients operating early childhood programs m ay include indirect costs, not to
exceed the federal de minimis.
(16) An intermediate district or consortium of intermediate districts may expend not more than 2% of the total
grant amount for outreach, recruiting, and public awareness of the program, if the intermediate district or
consortium of intermediate districts also participates in related statewide marketing and outreach efforts.
(17) Each grant recipient shall enroll children identified under subsection (8)(b) according to how far the child’s
household income is below 400% of the federal poverty guidelines by ranking each applicant child ’s household
income from lowest to highest and dividing the applicant children into quintiles based on how far the child ’s
household income is below 400% of the federal poverty guidelines, and then enrolling children in the quintile with
the lowest household income before enrolling children in the quintile with the next lowest household income until
slots are completely filled. If the grant recipient determines that all eligible children are being served and that
there are no children on the waiting list who live with families with a household income that is equal to or less
than 400% of the federal poverty guidelines, the grant recipient may then enroll children who live with families
with a household income that is greater than 400% of the federal poverty guidelines. The enrollment process must
consider income and risk factors, such that children determined with higher need are enrolled before children
with lesser need. For purposes of this subsection, all age -eligible children served in foster care or who are
experiencing homelessness or who have in dividualized education programs recommending placement in an
inclusive preschool setting are considered to live with families with household income equal to or less than 400%
of the federal poverty guidelines regardless of actual family income and are prioritized for enrollment within the
lowest quintile. This subsection does not apply after September 30, 2025.
(18) An intermediate district or consortium of intermediate districts receiving a grant under this section shall
allow parents of eligible children who are residents of the intermediate district or within the consortium to choose
a program operated by or c ontracted with another intermediate district or consortium of intermediate districts
and shall enter into a written agreement regarding payment, in a manner prescribed by the department of lifelong
education, advancement, and potential.
(19) An intermediate district or consortium of intermediate districts receiving a grant under this section shall
conduct a local process to contract with interested and eligible public and private for -profit and nonprofit
community-based providers that mee t all requirements of subsection (4) for at least 30% of its total allocation.
For 2024-2025, for the purposes of this 30% allocation, an intermediate district or consortium of intermediate
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districts may count children served by a Head Start grantee or delegate in a GSRP/Head Start school-day blended
program, GSRP/Head Start extended blended program, GSRP extended program, and great start readiness
school-day program. Children served in a pro gram funded only through Head Start are not counted toward this
30% allocation. Beginning in 2025-2026, the department of lifelong education, advancement, and potential shall
provide guidance to intermediate districts and consortia of intermediate district s on counting children served by
Head Start programming for the purposes of this 30% allocation. For 2024 -2025, an intermediate district or
consortium shall report to the department of lifelong education, advancement, and potential, in a manner
prescribed by the department of lifelong education, advancement, and potential, a detailed list of community -
based providers by provider type, including private for-profit, private nonprofit, community college or university,
Head Start grantee or delegate, and distri ct or intermediate district, and the number and proportion of its total
allocation allocated to each provider as subrecipient. Beginning in 2025 -2026, an intermediate district or
consortium shall report to the department of lifelong education, advancement, and potential, in a manner
prescribed by the department of lifelong education, advancement, and potential, information necessary for the
department of lifelong education, advancement, and potential to determine the intermediate district ’s or
consortium of intermediate districts’ compliance with this subsection. If the intermediate district or consortium
is not able to contract for at least 30% of its total allocation, the intermediate district or consortium shall notify
the department of lifelong education, advancement, and poten tial and, if the department of lifelong education,
advancement, and potential verifies that the intermediate district or consortium attempted to contract for at least
30% of its total allocation and was not able to do so, the intermediate district or conso rtium may retain and use
all of its allocation as provided under this section. To be able to use this exemption, the intermediate district or
consortium shall demonstrate to the department of lifelong education, advancement, and potential that the
intermediate district or consortium increased the percentage of its total allocation for which it contracts with a
community-based provider and the intermediate district or consortium shall submit evidence satisfactory to the
department of lifelong education, adva ncement, and potential, and the department of lifelong education,
advancement, and potential must be able to verify this evidence, demonstrating that the intermediate district or
consortium took measures to contract for at least 30% of its total allocation as required under this subsection,
including, but not limited to, at least all of the following measures:
(a) The intermediate district or consortium notified each nonparticipating licensed child care center located in
the service area of the intermediate district or consortium regarding the center ’s eligibility to participate, in a
manner prescribed by the department of lifelong education, advancement, and potential.
(b) The intermediate district or consortium provided to each nonparticipating licensed child care center located
in the service area of the intermediate district or consortium information regarding great start readiness program
requirements and a description of the application and selection process for community-based providers.
(c) The intermediate district or consortium provided to the public and to participating families a list of
community-based great start readiness program subrecipients with a great start to quality level of at least
enhancing quality level.
(20) If an intermediate district or consortium of intermediate districts receiving a grant under this section fails
to submit satisfactory evidence to demonstrate its effort to contract for at least 30% of its total allocation, as
required under subsection (19), the department of lifelong education, advancement, and potential may reduce the
allocation to the intermediate district or consortium by a percentage equal to the difference between the
percentage of an intermediate district ’s or consortium’s total allocation awarded to community -based providers
and 30% of its total allocation.
(21) To assist intermediate districts and consortia in complying with the requirement to contract with
community-based providers, for at least 30% of their total allocation, the department of lifelong education,
advancement, and potential shall do all of the following:
(a) Ensure that a great start resource center or the department of lifelong education, advancement, and
potential provides each intermediate district or consortium receiving a grant under this section with the contact
information for each licensed child care center located in the service area of the intermediate district or consortium
by March 1 of each year.
(b) Provide, or ensure that an organization with which the department of lifelong education, advancement,
and potential contracts provides, a community-based provider with a validated great start to quality rating within
90 days of the provider ’s having submitted a request and self -assessment. This subdivision does not apply after
September 30, 2025.
(c) Ensure that all intermediate district, district, community college or university, Head Start grantee or
delegate, private for-profit, and private nonprofit providers are subject to a single great start to quality continuous
quality improvement system. The continuous quality improvement system must ensure that regulators process
all prospective providers at the same pace on a first-come, first-served basis and must not allow 1 type of provider
to receive a great start to quality level ahead of any other type of provider.
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(d) By not later than March 1 of each year, compile the results of the information reported by each intermediate
district or consortium under subsection (19) and report to the legislature and post on a publicly available website
a list by intermediate dist rict or consortium with the number and percentage of each intermediate district ’s or
consortium’s total allocation allocated to community-based providers by provider type, including private for-profit,
private nonprofit, community college or university, He ad Start grantee or delegate, and district or intermediate
district.
(e) Allow intermediate districts and consortia and eligible community-based providers to utilize materials and
supplies purchased for great start readiness programs within their facilities for other early care and education
activities, in the following order of priority:
(i) Early care and education activities under a federal award.
(ii) Early care and education activities under other state awards.
(iii) Early care and education activities under local or regional awards.
(22) A recipient of funds under this section shall report to the center in a form and manner prescribed by the
center the information necessary to derive the number of children participating in the program, the number of
eligible children not participating in the program and on a waitlist, and the total number of children participating
in the program by various demographic groups and eligibility factors necessary to analyze equitable and priority
access to services for the purposes of subsection (3).
(23) As used in this section:
(a) “Child care center” means that term as defined in section 1 of 1973 PA 116, MCL 722.111.
(b) “Eligible great start readiness program options ” means a program option that operates on a school -day,
part-day, or extended schedule length, as determined by the department of lifelong education, advancement, and
potential. The department of lifelong education, advancement, and potential must maintain and publish on its
website requirements for each eligible schedule length, including the minimum day length, the minimum number
of days per week, and the minimum number of weeks per year. These programs may be blended with Head Start
programs, if allowable by federal rules and regulations.
(c) “Federal poverty guidelines ” means the guidelines published annually in the Federal Register by the
United States Department of Health and Human Services under its authority to revise the poverty line under
42 USC 9902.
(d) “GSRP extended program” means a program that operates for at least the same length of day as a district’s
first grade program for a minimum of 5 days per week, 36 weeks per year.
(e) “GSRP/Head Start extended blended program ” means a program funded under this section and a Head
Start program that are combined for an extended program.
(f) “GSRP/Head Start school-day blended program” means a part-day program funded under this section and
a Head Start program, which are combined for a school-day program.
(g) “Licensed child care center” means a child care center that has been issued a license under 1973 PA 116,
MCL 722.111 to 722.128, to operate a child care center.
(h) “Part-day program” means a program that operates at least 4 days per week, 30 weeks per year, for at least
3 hours of teacher -child contact time per day but for fewer hours of teacher -child contact time per day than a
school-day program.
(i) “School-day program” means a program that operates for at least the same length of day as a district’s first
grade program for a minimum of 4 days per week, 30 weeks per year. A classroom that offers a school-day program
must enroll all children for the school day to be considered a school-day program.
(24) From the state school aid fund money allocated in subsection (1), there is allocated for 2024-2025 and
2025-2026 an amount not to exceed $10,000,000.00 and, from the great start readiness program reserve fund
money allocated in subsection (1), there is allocated for 2024-2025 and 2025 -2026 an amount not to exceed
$18,000,000.00 for reimbursement of transportation costs for children attending great start readiness programs
funded under this section. To receive reimbursement under this subsection, by not later than November 1 of each
year, a program funded under this section that provides transportation shall submit to the intermediate district
that is the fiscal agent for the program a projected transportation budget. The amount of the reimbursement for
transportation under this subsection is no more than the projected transportation budget or $500.00 multiplied
by the number of children funded for the program under this section. If the amount allocated under this subsection
is insufficient to fully reimburse the transportation costs for all programs that provide transportation and submit
the required information, the department of lifelong education, advancement, and potential shall prorate the
reimbursement in an equal amount per child funded. The department of lifelong education, advancement, and
potential shall make payments to the intermediate district that is the fiscal agent for each program, and the
intermediate district shall then reimburse the program provider for transportation costs as prescribed under this
subsection.
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(25) For 2024-2025, subject to, and from the funds allocated under, subsection (24), the department of lifelong
education, advancement, and potential shall reimburse a program for transportation costs related to parent - or
guardian-accompanied transportati on provided by transportation service companies, buses, or other public
transportation services. Beginning in 2025-2026, subject to, and from the funds allocated under, subsection (24),
the department of lifelong education, advancement, and potential shall allow programs to utilize those funds for
costs related to parent - or guardian -provided transportation and for costs related to parent - or guardian -
accompanied transportation provided by transportation service companies, buses, or other public transportat ion
services. For payments related to parent - or guardian -provided transportation, the department of lifelong
education, advancement, and potential shall develop parameters to ensure dollars are utilized in a way that
improves access to eligible great star t readiness program options for low -income and geographically isolated
families. To be eligible for reimbursement under this subsection in 2024 -2025, and to utilize funding under this
subsection in 2025-2026, a program must submit to the intermediate district or consortia of intermediate districts
all of the following:
(a) The names of families provided with transportation support along with a documented reason for the need
for transportation support and the type of transportation provided.
(b) Financial documentation of actual transportation costs incurred by the program, including, but not limited
to, receipts and mileage reports, as determined by the department of lifelong education, advancement, and
potential.
(c) Any other documentation or information determined necessary by the department of lifelong education,
advancement, and potential.
(26) The department of lifelong education, advancement, and potential shall implement a process to review
and approve age-appropriate comprehensive classroom level quality assessments for GSRP grantees that support
the early childhood standards of quality for birth to kindergarten children adopted by the state board. The
department of lifelong education, advancement, and potential shall make available to intermediate districts at
least 2 classroom level quality assessments that have been approved by the dep artment of lifelong education,
advancement, and potential.
(27) An intermediate district that is a GSRP grantee may approve the use of a supplemental curriculum that
aligns with and enhances the age -appropriate educational curriculum in the classroom. If the department of
lifelong education, advancement, and poten tial objects to the use of a supplemental curriculum approved by an
intermediate district, the director of the department of lifelong education, advancement, and potential shall
establish a review committee independent of the department of lifelong educati on, advancement, and potential.
The review committee shall meet within 60 days of the department of lifelong education, advancement, and
potential registering its objection in writing and provide a final determination on the validity of the objection
within 60 days of the review committee’s first meeting.
(28) The department of lifelong education, advancement, and potential shall implement a process to evaluate
and approve age-appropriate educational curricula that are in compliance with the early childhood standards of
quality for birth to kindergarten children adopted by the state board.
(29) From the state school aid fund money allocated under subsection (1), there is allocated for 2024-2025 and
2025-2026 an amount not to exceed $2,000,000.00 for payments to intermediate districts or consortia of
intermediate districts for professional development and training materials for educators in programs
implementing new curricula or child assessment tools approved for use in the great start readiness program.
(30) A great start readiness program, a GSRP extended program, a GSRP/Head Start school -day blended
program, a GSRP/Head Start extended blended program, or other eligible great start readiness programs funded
under this section are permitted to utilize Ame riCorps Pre -K Reading Corps members in classrooms
implementing research-based early literacy intervention strategies.
(31) In addition to the allocation under subsection (1), from the state school aid fund money appropriated under
section 11, there is allocated an amount not to exceed $25,000,000.00 for 2024-2025 and an amount not to exceed
$10,000,000.00 for 2025 -2026 only for classroom start up grants to intermediate districts and consortia of
intermediate districts for new or expanding great start readiness classrooms. All of the following apply to funding
allocated under this subsection:
(a) To receive funding under this subsection, intermediate districts and consortia of intermediate districts
must apply for the funding in a form and manner prescribed by the department of lifelong education,
advancement, and potential.
(b) The department of lifelong education, advancement, and potential shall pay an amount not to exceed
$50,000.00 for each new or expanded classroom. If funding is insufficient to fully fund all eligible applicants, the
department of lifelong education, advancement, and potential must prorate the per-classroom amount on an equal
basis. If the allocation is not fully paid in the current fiscal year, the department of lifelong education,
advancement, and potential may award any remaining funding from fiscal y ear 2024-2025 during fiscal year
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2025-2026, and may award any remaining funding from fiscal year 2025 -2026 during fiscal year 2026 -2027 for
each new or expanded classroom at an equal amount per classroom, based on remaining available funds, not to
exceed $50,000.00 per classroom.
(c) Funds received under this subsection by intermediate districts and consortia of intermediate districts must
be paid in full to the entity operating the classroom and may be used for 1 or more of the following purposes:
(i) Costs associated with attracting, recruiting, retaining, and licensing required classroom education
personnel to staff new or expanded classrooms.
(ii) Supporting facility improvements or purchasing facility space or modular classroom units necessary to
provide a safe, high-quality learning environment for children in each new or expanded classroom, and for costs
to become a licensed facility such as architectural drawings, permits, and other prelicensure inspection fees.
(iii) Outreach material necessary for public awareness that the great start readiness program has openings in
the area and for costs associated with enrolling eligible children in new or expanded classrooms.
(iv) Supporting costs in each new or expanded classroom associated with improving a provider’s great start to
quality level.
(d) Recipients of funds under this subsection must demonstrate that instructional staff have completed, or are
in the process of completing, professional learning in the science of reading. Grant funds may be used to support
this professional learning and are intended to ensure new classrooms are well equipped to implement evidence -
based early literacy strategies.
(e) The funds allocated under this subsection for 2024 -2025 are a work project appropriation, and any
unexpended funds for 2024-2025 do not lapse to the state school aid fund and are carried forward into 2025-2026.
The purpose of the work project is to continue support for new or expanded great start readiness classrooms. The
estimated completion date of the work project is September 30, 2026.
(f) The funds allocated under this subsection for 2025 -2026 are a work project appropriation, and any
unexpended funds for 2025-2026 do not lapse to the state school aid fund and are carried forward into 2026-2027.
The purpose of the work project is to continue support for new or expanded great start readiness classrooms. The
estimated completion date of the work project is September 30, 2027.
(g) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make
payments under this subsection on a schedule determined by the department of lifelong education, advancement,
and potential.
(32) In addition to the funds allocated in subsection (1), there is allocated from the general fund money
appropriated under section 11 for 2024-2025 only an amount not to exceed $1,950,000.00 for an intermediate
district or a consortium of intermediate districts to partner with the department of lifelong education,
advancement, and potential and community -based organizations to continue implementing statewide outreach
and enrollment campaign activities to raise awareness about the availability of services through the great start
readiness program, and to promote enrollment.
(33) The funds allocated under subsection (32) for 2024 -2025 are a work project appropriation, and any
unexpended funds for 2024-2025 are carried forward into 2025 -2026. The purpose of the work project is to raise
awareness of and participation in great start readiness programming. The estimated completion date of the work
project is September 30, 2027.
(34) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall
make payments under subsection (32) on a schedule determined by the department of lifelong education,
advancement, and potential.

Sec. 32n. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025
only an amount not to exceed $79,000,000.00, and from the state school aid pupil support reserve fund money
appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $75,000,000.00 to Clinton
County RESA to collaborate with the department of lifelong education, advancement, and potential, for the
purposes of this section. It is the intent of the legislature that, for 2026-2027, the allocation from the state school
aid pupil support reserve fund money appropriated in section 11 for the purposes described in this section will be
$85,000,000.00. It is the intent of the legislature that, for 2027-2028, the allocation from the state school aid pupil
support reserve fund money appropriated in section 11 for the purposes described in this section will be
$100,000,000.00.
(2) From the state school aid fund money allocated in subsection (1), there is allocated for 2024-2025 only an
amount not to exceed $57,000,000.00 , and from the state school aid pupil support reserve fund money allocated
in subsection (1), there is allocated for 2025-2026 only an amount not to exceed $75,000,000.00 for a grant program
for eligible applicants to expand access to quality, affordable pro gramming before and after the school day or
during the summer for young people. The department of lifelong e ducation, advancement, and potential shall
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establish competitive grant criteria for the program described in this subsection. To be eligible for a grant under
this subsection, the applicant must meet, at a minimum, all of the following criteria:
(a) Serve children in any of grades K to 12.
(b) Be a community-based organization that is exempt from federal income tax under section 501(c)(3) of the
internal revenue code, 26 USC 501, an institution of higher education, a public library, a local government, or an
intermediate district.
(c) Provide before -school, after -school, before -and-after-school, or summer school programming to children
described in subdivision (a). These programs must be used to support expanded learning opportunities, including,
but not limited to, mentoring, leadership, community engagement, agriculture, visual and performing arts,
literacy, science, technology, engineering, mathematics, health and wellness, recreation, financial literacy,
physical fitness, career and college exploration, youth voice, 21st century skills, conflict resolution, and social
engagement programming.
(d) Address measurable goals, including, but not limited to, improved school attendance, academic outcomes,
improved attitudes toward school, improved positive behaviors, skill development and retention, higher education
aspirations, and improved family engagement and include activities linked to research or quality practices.
(e) Be 1 of the following:
(i) A licensed child care organization.
(ii) An entity that has an active application to be a licensed child care organization.
(iii) An exempt entity.
(3) The department of lifelong education, advancement, and potential shall establish a competitive grant
process for awarding funding under subsection (2). The department of lifelong education, advancement, and
potential shall develop the form and manner for applying for the grants. The application must include a request
for information on the applicant ’s outreach to children, youth, and families who are eligible for free or reduced -
price meals under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769j. The application must
be open for not less than 30 calendar days. Except as otherwise provided in this subsection, at least 30 days before
the application is opened, the department of lifelong education, advancement, and potential must publis h on its
public website the criteria that will be used in evaluating the application that must include, but are not limited
to, priorities under subsection (5). For 2025-2026 only, the department of lifelong education, advancement, and
potential, is not required to publish the evaluation criteria at least 30 days before the application is opened.
(4) Subject to subsection (9), in determining award amounts under subsection (2), the department of lifelong
education, advancement, and potential shall, to the extent practicable, ensure that eligible entities in all
geographic regions of this state are represented in the distribution of grant funding under subsection (2).
(5) Subject to subsection (9), the department of lifelong education, advancement, and potential shall prioritize
the distribution of grant funding under subsection (2) based on, at a minimum, the following:
(a) An applicant’s demonstrated need.
(b) The percentage of low -income families in the geographic area being served. Prioritization must be
determined by the average percentage of pupils in the district who are eligible for free and reduced -priced meals
as determined under the Richard B. Russe ll national school lunch act, 42 USC 1751 to 1769j, where eligible
entities will provide before-and-after-school or summer school programs.
(c) Whether the application provides services for the full school year.
(d) The applicant ’s track record for providing quality, affordable before -and-after-school or summer school
services.
(e) Whether an applicant serving children in any of grades K to 8 is a licensed child care organization, is an
entity that has an active application to be a licensed child care organization, or has implemented the Michigan
Out-of-School Time Standards of Quality if the applicant is an exempt entity and, beginning in 2025-2026, serves
at least 15 school-age youth at a single location in grades K to 12.
(6) Subject to subsection (7), an eligible entity that receives grant funding under subsection (2) shall use the
funding only to provide before -school, after-school, before-and-after-school, or summer school programming to
children described in subsection (2)(a). The programming offered under subsection (2) must meet all of the
following:
(a) For programming that is offered by a licensed child care organization, be provided to children and youth in
a manner in which the children are physically present at the building or location for which the licensed child care
organization received its license under 1973 PA 116, MCL 722.111 to 722.128, or, for programming that is offered
by an exempt entity serving grades K to 12, be provided to children and youth in a manner in which the children
and youth are physically present at a building or location designated by the exempt entity.
(b) Provide educational programming in core subject areas, including, but not limited to, mathematics, reading,
and science.
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(c) Provide data to evaluate the program in a form and manner as prescribed by the department of lifelong
education, advancement, and potential.
(7) For 2024-2025 only, and subject to subsections (4) and (5), up to 2% of funding allocated under subsection (2)
must be allocated to a nonprofit entity with experience serving youth -serving organizations to provide start -up
grants and capacity building, professional development, and technical assistance for implementation of high -
quality, evidence-based out-of-school time learning opportunities.
(8) Beginning in 2025-2026, all of the following apply to funding allocated under this section:
(a) An amount not to exceed 0.25% of the funding allocated under subsection (2) or $250,000.00, whichever is
greater, may be retained by Clinton County RESA for administrative costs.
(b) An amount not to exceed $500,000.00 of the funding allocated under subsection (2) must be allocated by
Clinton County RESA, as directed by the department of lifelong education, advancement, and potential, and in
collaboration with the center and the Michigan afterschool partnership as needed, to provide statewide evaluation
activities of eligible youth served, their families, and programs funded under this section. This evaluation must
allow for a comparative analysis between program youth and their peers in grades K to 12.
(c) An amount not to exceed 1.5% of the funding allocated under subsection (2) must be allocated by
Clinton County RESA, as directed by the department of lifelong education, advancement, and potential, and in
collaboration with the Michigan afterschool partnership, to provide statewide out -of-school time activities and
supports including, but not limited to, cap acity building initiatives, professional development, and technical
assistance to increase the likelihood for implementation of high quality, eviden ce-based, out -of-school time
learning opportunities by eligible entities under subsections (4) and (5).
(9) The department of lifelong education, advancement, and potential shall award not less than 60% of the
funding under subsection (2) to community-based organizations.
(10) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall
make payments under this section in full upon grant award. Grantees that do not comply with reporting
requirements, fail to provide the services proposed in their grant application, or close during the grant period may
be required to repay the funding they received under this section to the department of lifelong education,
advancement, and potential.
(11) The department of lifelong education, advancement, and potential, in collaboration with the Michigan
Afterschool Partnership, shall convene an advisory committee to review the program components listed within
this section and make recommendations to the department of lifelong education, advancement, and potential for
changes on the program described in this section. The advisory committee shall meet at a schedule set by the
department of lifelong education, advancement, and potential, or at least quarterly. The advisory committee shall
provide for the involvement of, but not limited to, community -based organizations, regional intermediaries,
district administrators, youth, parents, and representatives from the business and philanthropic communities, as
appropriate.
(12) From the state school aid fund money allocated in subsection (1), Clinton County RESA shall allocate
$22,000,000.00 in 2024-2025 only to recipients under this subsection as follows:
(a) $4,000,000.00 to support the efforts of FFA.
(b) $4,000,000.00 to the Boys and Girls Club of Southeastern Michigan in Detroit to expand programming.
Programming expansion includes, but is not limited to, construction or remodeling of facilities to allow for new or
extended programs.
(c) $4,000,000.00 to the HYPE Athletics Center in Dearborn Heights to provide programming that may include,
but is not limited to, science, technology, engineering, arts, and mathematics (STEAM) programs; literacy and
reading programs; after-school programs; youth fitness and athletic programs; and mental health and behavioral
health services.
(d) $1,500,000.00 to Brilliant Detroit to support delivery of high -dosage neighborhood -based tutoring and
direct noninstructional services for at-risk pupils who are 3 to 12 years of age. Funding under this subdivision is
intended to ensure that pupils are proficient in English language arts by the end of grade 3 and proficient in
mathematics by the end of grade 8, that all participants are kindergarten ready, and that pupils are prepared to
attend school regularly. As used in this subdivision, “at-risk pupil” means that term as defined in section 31a.
(e) $1,200,000.00 to the State Alliance of Michigan YMCAs to provide students in grades 6 to 12 with hands -
on civics and model -government programs that offer statewide engagement with peers across this state for the
purpose of expanding those students’ opportunities to improve their social studies knowledge, thinking skills, and
intellectual processes and dispositions required for active engagement in fulfilling responsibilities of civic
participation.
(f) $1,000,000.00 to the Downtown Boxing Gym in Detroit to expand programming. Programming expansion
includes, but is not limited to, construction or remodeling of facilities to allow for new or extended programs.
(g) $1,000,000.00 to support the operations of the Flint Center for Educational Excellence.
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(h) $800,000.00 to the Detroit Opera for educational programming for grades pre-K to 12, including field trips,
summer camps, and other learning opportunities. The funds allocated under this subdivision are a work project
appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025 -2026. The purpose of the
work project is to support the Detroit Opera educational programming as described in this subdivision. The
estimated completion date of the work project is September 30, 2028.
(i) $500,000.00 to Special Olympics Michigan, a nonprofit organization organized under the laws of this state
that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501,
that has a mission statement to p rovide year-round sports training and athletic competition for children and
adults with intellectual disabilities. Funding under this subdivision must be used by the organization to expand
the organization’s programming.
(j) $500,000.00 to the Horatio Williams Foundation to support efforts to provide college preparation services,
math leagues, sports programming, and literacy services in Detroit.
(k) $500,000.00 to Friends of the Children, a nonprofit organization that employs salaried professional mentors
who support youth and their families from grades K to 12. The salaried professional mentorship program in this
subdivision must employ a 2 -generational approach to supporting youth in and outside of the classroom,
particularly in reading and math comprehension; support students and their families by connecting them to
concrete supports like education and employment pathways, housing, utility assistance, and food security; and be
located in a city with a population greater than 600,000 in a county with a population greater than 1,500,000
according to the most recent federal decennial census.
(l) $500,000.00 to the Detroit Police Athletic League to support operations and programming including, but
not limited to, athletic programs and youth enrichment programs.
(m) $500,000.00 to the Detroit Science Center, a nonprofit organization that is tax -exempt under
section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and located in a city with a population greater
than 600,000 in a county with a population greater than 1,700,000 according to the most recent federal decennial
census. Funds under this subdivisio n must be used by the nonprofit organization to expand the nonprofit
organization’s mission of providing opportunities for students to discover, explor e, and appreciate science,
technology, engineering, and mathematics in a creative, dynamic learning environment.
(n) $2,000,000.00 to buildOn Detroit to expand the Service Learning Program for high school students.
(13) For 2024 -2025 only, recipients of grants under subsection (12) may not apply for funding under
subsection (2).
(14) Funds allocated under subsection (12) for 2024 -2025 are a work project appropriation, and any
unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to provide
additional support to out -of-school time pro grams. The estimated completion date of the work project is
September 30, 2026.
(15) As used in this section:
(a) “An entity that has an active application to be a licensed child care organization” means an entity that has
an active application to be a licensed child care organization under 1973 PA 116, MCL 722.111 to 722.128, and
will be a licensed child care organization before the entity provides services for which a child care organization is
required to be licensed under 1973 PA 116, MCL 722.111 to 722.128.
(b) “Child care organization” means that term as defined in section 1 of 1973 PA 116, MCL 722.111.
(c) “Exempt entity” means an entity described in section 1(1)(i)(i) to (v) of 1973 PA 116, MCL 722.111.
(d) “Licensed child care organization ” means a child care organization that has been issued a license under
1973 PA 116, MCL 722.111 to 722.128, to operate a child care organization.
(e) “School-age” means a child who is eligible to attend a grade of kindergarten or higher, but is less than
13 years of age. A child is considered to be school age on the first day of the school year in which the child is
eligible under section 1 of 1973 PA 116, MCL 722.111.

Sec. 32t. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
only an amount not to exceed $25,000,000.00 to Clinton County RESA (CCRESA) for phase 2 of a preschool pilot
program to provide services to 3 -year-old children. Eligible children are those whose age is less than 4 years on
September 1 and greater than or equal to 3 years on December 1 of the current school year and whose family
income is at or below 250% of the federal poverty level, with priority given to families with lower incomes.
Additional factors such as developmental delay, language barriers, or challenging behaviors may also be
considered for eligibility. These services must be designed for children who are age 3 and must be similar to the
services provided through the great start readiness program. The program described in this section must be
administered by CCRESA Strong Beginnings Implementation Team under the direction of the department of
lifelong education, advancement, and potential , with assessment, data, and collection analysis for the program
being provided by Michigan State University.
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(2) The department of lifelong education, advancement, and potential must pay the funding under this section
to Clinton County RESA in installments over 2 years. The department of lifelong education, advancement, and
potential shall determine the amount to be used in each year.
(3) This section is intended to provide planning for and implement phase 2 of the pilot preschool program for
3-year-old children. The second phase of the pilot will examine variations of the current program, such as part -
day, 5-day-per-week, multiage grouping with the great start readiness program, and inclusion.
(4) In order to evaluate the outcomes and impact of strong beginnings, Clinton County RESA and
Michigan State University shall compare outcomes for children who attend strong beginnings and the great start
readiness program with:
(a) Outcomes for children who attend the great start readiness program only.
(b) Outcomes for children who did not attend either program.
(5) Data used for the purpose of comparisons under subsection (4) must include, at a minimum, strong
beginnings waitlist data, strong beginnings child assessment data, the great start readiness program child
assessment data, kindergarten attendance data, and elementary standardized testing data.
(6) At the end of phase 2, Clinton County RESA shall provide a report to the department of lifelong education,
advancement, and potential detailing all of the following:
(a) How the phase 2 pilot was conducted.
(b) Demographics of the children served.
(c) Outcomes achieved.
(d) Scope of expansion, including successes and challenges the pilot faced and how the implementation team
responded.
(e) An updated model, including phase 2 variations, this state could use to scale the program statewide, if
funding were available.
(7) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended
funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to expand phase 1 of
the pilot to additional classrooms and initiate phase 2 of the pilot. The estimated completion date of the work
project is September 30, 2029.
(8) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make
payments under this section on a schedule determined by the department of lifelong education, advancement, and
potential.

Sec. 32y. Notwithstanding section 18a, funds allocated under former section 32x for 2023 -2024 may be
available for expenditure until September 30, 2029. A recipient of funding under that section must return any
unexpended funds to the department in the man ner prescribed by the department not later than October 30,
2029.

Sec. 33. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not
to exceed $11,000,000.00 for 2023-2024 only for grants to eligible districts for the purposes described in this
section.
(2) To receive a grant under this section, a district must apply for the grant in a form and manner prescribed
by the department.
(3) A district that meets both of the following is an eligible district under this section:
(a) The district must enroll students in grades K to 5.
(b) The district must, in its application described in subsection (2), pledge to do all of the following:
(i) Provide for all pupils in grades K to 5 at least 60 minutes per week of instruction in music or visual arts,
taught by a certificated teacher who has, or is working towards, the appropriate endorsement issued by the
department. For teaching music, the ap propriate endorsement is a JX or JQ endorsement. For teaching visual
arts, the appropriate endorsement is an LQ, LX, or LZ endorsement.
(ii) Maintain staffing that includes at least 1 certificated teacher with a JX or JQ music endorsement or an
LQ, LX, or LZ visual arts endorsement issued by the department for every 400 pupils enrolled in grades K to 5.
(iii) Adopt and implement, or maintain, specific curricula for music or visual arts.
(iv) Maintain in each elementary school at least 1 space that is either dedicated to music or visual arts
instruction or designated to be used for music or visual arts instruction and that allows for effective
implementation of the music or visual arts curric ulum, with consideration given to the physical materials and
tools needed for music or visual arts instruction.
(v) Establish and maintain a separate dedicated budget for music or visual arts instruction in grades K to 5.
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(vi) Participate in the collection of data in the fall and spring of the 2024-2025 school year on changes in course
offerings, instructor qualifications, student course enrollments, and other aspects of the district’s music or visual
arts programs as determined by the department and MI Creative Potential.
(vii) Commit to including music and visual arts in district and school continuous improvement planning using
the program review tool that accompanies the Michigan Blueprint of a Quality Arts Education, available in the
Michigan Integrated Continuous Improvement Process database.
(viii) Adopt and implement a plan to satisfy the recommendations listed in the Michigan Blueprint of a Quality
Arts Education program.
(4) Grants awarded under this section must be awarded for the coverage of costs for 1 year of additional costs,
including 1-time costs, for the district to implement or maintain a music or visual arts program.
(5) In awarding grants under this section, the department shall prioritize as follows:
(a) The department shall first award grants to districts that are first -time applicants and meet 1 of the
following:
(i) The district currently has a music or visual arts program that meets the requirements of subsection (3)(b)(i)
to (vii) but does not meet the recommendations listed in the Michigan Blueprint of a Quality Arts Education
program and the district will use the grant to move toward implementing those recommendations.
(ii) The district does not currently have a music program that meets the requirements of subsection (3)(b)(i) to
(vii) or does not currently have a visual arts program that meets the requirements of subsection (3)(b)(i) to (vii).
(b) If there is funding remaining after awarding grants to districts described in subdivision (a), the department
shall award grants to other eligible districts.
(6) All grants under this section must be awarded by not later than February 1 of the fiscal year in which the
grant is approved.
(7) If the total funding allocated under this section is insufficient to fully fund payments to all eligible districts
under this section, the department shall prorate payments to all eligible districts on an equal percentage basis.
(8) Subject to the provisions of subsection (9), in addition to the funds appropriated in section 11, from the
state school aid fund, there is appropriated and allocated an amount not to exceed $2,500,000.00 to Eaton Regional
Education Service Agency to se rve as the fiscal agent for the Michigan Assessment Consortium to be used in
implementing MI Creative Potential, as led by the Michigan Arts Education Instruction and Assessment Project,
developed by the Michigan Assessment Consortium, in partnership with the Michigan Department of Education,
Michigan Arts and Culture Council, and Michigan educators. The Michigan Assessment Consortium shall
implement MI Creative Potential by acquiring and implementing the artlook platform, by building school and
community partnerships to allow districts to publicize their need for supplemental arts instruction, by providing
professional learning on artlook tools, and by collecting and uploading data on availability of arts education within
districts in each prosperity region each school year. The data collected and uploaded must include, but is not
limited to, how many arts classes are offered, the duration and frequency of instruction in the disciplines, educator
and staffing details, the arts budget in each building, arts-related extracurricular activities that are offered, and
community partners that are engaged. Eaton Regional Education Service Agency shall provide a report to the
department each September on progress of this work.
(9) The appropriation and allocation under subsection (8) is contingent on the effective issuance of a directive
by the budget director, pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.451a,
to lapse $2,500,000.00 in remaining funding from a work project that was established under this section in 2023-
2024. The amount allocated under subsection (8) may not exceed the amount lapsed from the work project
referenced in the immediately preceding sentence.
(10) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(11) The funds allocated under this section for 2023 -2024 are a work project appropriation, and any
unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to provide
for music or visual arts education. The estimated completion date of the work project is September 30, 2027.

Sec. 35a. (1) From the appropriations in section 11, there is allocated for 2024-2025 an amount not to exceed
$82,900,000.00 and for 2025-2026 an amount not to exceed $52,000,000.00 from the state school aid fund for the
purposes of this section. It is the intent of the legislature that, for 2026-2027, the allocation from the state school
aid fund money appropriated in section 11 for the purposes described in this section will be $42,000,000.00.
Excluding staff or contracted employees funded under subsection (8), the superintendent shall designate staff or
contracted employees funded under this section as critical shortage. By not later than December 31 of each fiscal
year in which funding is allocated under this section, the superintendent of public instruction shall do both of the
following:
(a) Report in person to the house and senate appropriations subcommittees on school aid regarding progress
on early literacy and be available for questioning as prescribed through a process developed by the chairs of the
house and senate appropriations subcommittees on school aid.
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(b) Submit a written report to the house and senate appropriations subcommittees on school aid regarding
progress on early literacy. Beginning in 2025 -2026, the report described in this subdivision must include the
number of literacy coaches supported by funding provided under subsection (4), including the number of coaches
supported in each intermediate district, and the percentage of supported coaches that have received, or are in the
process of receiving, professional learning by the approved provider described in subsection (11).
(2) A district that receives funds under subsection (5) may spend up to 5% of those funds for professional
development for educators in a department -approved research-based training program related to current state
literacy standards for pupils in grades pre-K to 5. The professional development must also include training in the
use of screening and diagnostic tools, progress monitoring, and intervention methods used to address barriers to
learning and delays in learning that are diagnosed through the use of these tools.
(3) A district that receives funds under subsection (5) may use up to 5% of those funds to administer
department-approved screening and diagnostic tools to monitor the development of early literacy and early
reading skills, and risk factors for word -level reading difficulties of pupils in grades pre -K to 5 and to support
evidence-based professional learning described in subsection (11) for educators in admini stering and using
screening, progress monitoring, and diagnostic assessment data to inform instruction through prevention and
intervention in a multi -tiered system of supports framework. A department -approved screening and diagnostic
tool administered by a district using funding under this section must include all of the following components:
phonemic awareness, phonics, fluency, rapid automatized naming (RAN), and comprehension. Further, all of the
following sub-skills must be assessed within each of these components:
(a) Phonemic awareness - segmentation, blending, and sound manipulation (deletion and substitution).
(b) Phonics - decoding (reading) and encoding (spelling).
(c) Fluency.
(d) Comprehension - making meaning of text.
(4) From the allocation under subsection (1), there is allocated an amount not to exceed $42,000,000.00 for
2024-2025 and 2025-2026 for the purpose of providing early literacy coaches at intermediate districts to assist
teachers in developing and implementing instructional strategies for pupils in grades pre -K to 5 so that pupils
are reading at grade level by the end of grade 3. All of the following apply to funding under this subsection:
(a) The department shall develop an application process consistent with the provisions of this subsection. An
application must provide assurances that literacy coaches funded under this subsection are knowledgeable about
at least the following:
(i) Current state literacy standards for pupils in grades pre-K to 3.
(ii) Implementing an instructional delivery model based on frequent use of formative, screening, and diagnostic
tools, known as a multi-tiered system of supports, to determine individual progress for pupils in grades pre-K to 5
so that pupils are reading at grade level by the end of grade 3.
(iii) The use of data from diagnostic tools to determine the necessary additional supports and interventions
needed by individual pupils in grades pre-K to 5 to read at grade level.
(b) From the allocation under this subsection, the department shall award grants to intermediate districts for
the support of early literacy coaches. The department shall provide this funding in the following manner:
(i) The department shall award each intermediate district grant funding to support the cost of 2 early literacy
coaches in an equal amount per early literacy coach, not to exceed $125,000.00.
(ii) After distribution of the grant funding under subparagraph ( i), the department shall distribute the
remainder of grant funding for additional early literacy coaches in an amount not to exceed $125,000.00 per early
literacy coach. The number of funded early literacy coaches for each intermediate district is based on the
percentage of the total statewide number of pupils in grades K to 3 who meet the income eligibility standards for
the federal free and reduced-price lunch programs who are enrolled in districts in the intermediate district.
(c) If an intermediate district that receives funding under this subsection uses an assessment tool that screens
for characteristics of dyslexia, the intermediate district shall use the assessment results from that assessment
tool to identify pupils who demonstrate characteristics of dyslexia.
(d) All literacy coaches funded under this subsection must have already received, or be making progress toward
receiving, professional learning by the approved provider described in subsection (11).
(e) To be eligible to receive funding under this subsection, an intermediate district must provide the
department with a list by September 1 of the immediately preceding fiscal year containing contact information
for all literacy coaches funded under this subsection, in a form and manner determined by the department. An
intermediate district shall communicate any personnel changes and changes to contact information for literacy
coaches funded under this subsection to the department within 30 days of the per sonnel change or change in
contact information.
(5) From the allocation under subsection (1), there is allocated an amount not to exceed $19,900,000.00 for
2024-2025 to districts that provide additional instructional time to those pupils in grades pre -K to 5 who have
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been identified by using department-approved screening and diagnostic tools as needing additional supports and
interventions to read at grade level by the end of grade 3. Additional instructional time may be provided before,
during, and after regular schoo l hours or as part of a year -round balanced school calendar. All of the following
apply to funding under this subsection:
(a) To be eligible to receive funding, a district must demonstrate to the satisfaction of the department that the
district has done all of the following:
(i) Implemented a multi-tiered system of supports instructional delivery model that is an evidence-based model
that uses data-driven problem solving to integrate academic and behavioral instruction and that uses intervention
delivered to all pupils in varying intensities based on pupil needs. The multi -tiered system of supports must
provide at least all of the following essential components:
(A) Team-based leadership.
(B) A tiered delivery system.
(C) Selection and implementation of instruction, interventions, and supports.
(D) A comprehensive screening and assessment system.
(E) Continuous data-based decision making.
(ii) Used department -approved research -based diagnostic tools to identify individual pupils in need of
additional instructional time.
(iii) Used a reading instruction method that focuses on the 5 fundamental building blocks of reading: phonics,
phonemic awareness, fluency, vocabulary, and comprehension and content knowledge.
(iv) Provided teachers of pupils in grades pre -K to 5 with research -based professional development in
diagnostic data interpretation.
(v) Complied with the requirements under section 1280f of the revised school code, MCL 380.1280f.
(b) The department shall distribute funding allocated under this subsection to eligible districts on an equal
per-first-grade-pupil basis.
(c) If the funds allocated under this subsection are insufficient to fully fund the payments under this
subsection, payments under this subsection are prorated on an equal per-pupil basis based on grade 1 pupils.
(6) By not later than September 1 of each year, a district that receives funding under subsection (5) in
conjunction with the Michigan student data system, if possible, shall provide to the department a report that
includes at least both of the following, in a form and manner prescribed by the department:
(a) For pupils in grades pre -K to 5, the teachers, pupils, schools, and grades served with funds under this
section and the categories of services provided.
(b) For pupils in grades pre-K to 5, pupil proficiency and growth data that allows analysis both in the aggregate
and by each of the following subgroups, as applicable:
(i) School.
(ii) Grade level.
(iii) Gender.
(iv) Race.
(v) Ethnicity.
(vi) Economically disadvantaged status.
(vii) Disability.
(viii) Pupils identified as having reading deficiencies.
(7) From the allocation under subsection (1), there is allocated an amount not to exceed $6,000,000.00 for 2024-
2025 to an intermediate district in which the combined total number of pupils in membership of all of its
constituent districts is the fewest among all intermediate districts. All of the following apply to the funding under
this subsection:
(a) Funding under this subsection must be used by the intermediate district, in partnership with an association
that represents intermediate district administrators in this state, to implement all of the following:
(i) Literacy essentials teacher and principal training modules.
(ii) Face-to-face and online professional learning of literacy essentials teacher and principal training modules
for literacy coaches, principals, and teachers.
(iii) The placement of regional lead literacy coaches to facilitate professional learning for early literacy coaches.
These regional lead literacy coaches shall provide support for new literacy coaches, building teachers, and
administrators and shall facilitat e regional data collection to evaluate the effectiveness of statewide literacy
coaches funded under this section.
(iv) Provide $500,000.00 from this subsection for literacy training, modeling, coaching, and feedback for district
principals or chief administrators, as applicable. The training described in this subparagraph must use the pre-K
and K to 3 essential instructional practices in literacy created by the general education leadership network as the
framework for all training provided under this subparagraph.
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(v) Job -embedded professional learning opportunities for mathematics teachers through mathematics
instructional coaching. Funding must be used for professional learning for coaches, professional developers,
administrators, and teachers; coaching for early ma thematics educators; the development of statewide and
regional professional learning networks in mathematics instructions; and the development and support of digital
professional learning modules.
(b) By not later than September 1 of each year, the intermediate district described in this subsection, in
consultation with grant recipients, shall submit a report to the chairs of the senate and house appropriations
subcommittees on school aid, the chair s of the senate and house standing committees responsible for education
legislation, the house and senate fiscal agencies, and the state budget director. The report described under this
subdivision must include student achievement results in English langua ge arts and mathematics and survey
results with feedback from parents and teachers regarding the initiatives implemented under this subsection.
(c) Up to 2% of funds allocated under this subsection may be used by the association representing intermediate
district administrators that is in partnership with the intermediate district specified in this subsection to
administer this subsection.
(8) From the allocation under subsection (1), the department shall allocate the amount of $5,000,000.00 for
2024-2025 only to an intermediate district or a consortium of intermediate districts to partner with the Michigan
Education Corps for the PreK Reading Corps, the K3 Reading Corps, and the Math Corps. An intermediate district
or a consortium of intermediate districts receiving funding under this subsection must forward the amount
received under this subsection to the Michigan Education Corps for statewide services. As conditions of receiving
funding from an intermediate district or a consortium of intermediate districts, all of the following apply to
funding received by the Michigan Education Corps under this subsection:
(a) By September 1 of the current fiscal year, the Michigan Education Corps shall provide a report concerning
its use of the funding to the senate and house appropriations subcommittees on school aid, the senate and house
fiscal agencies, and the senate an d house caucus policy offices on outcomes and performance measures of the
Michigan Education Corps, including, but not limited to, the degree to which the Michigan Education Corps ’
replication of the PreK Reading Corps, the K3 Reading Corps, and the Math C orps programs is demonstrating
sufficient efficacy and impact. The report must include data pertaining to at least all of the following:
(i) The current impact of the programs on this state in terms of numbers of children and schools receiving
support. This portion of the report must specify the number of children tutored, including dosage and completion,
and the demographics of those children.
(ii) Whether the assessments and interventions are implemented with fidelity. This portion of the report must
include details on the total number of assessments and interventions completed and the range, mean, and
standard deviation.
(iii) Whether the literacy or math improvement of children participating in the programs is consistent with
expectations. This portion of the report must detail at least all of the following:
(A) Growth rate by grade or age level, in comparison to targeted growth rate.
(B) Average linear growth rates.
(C) Exit rates.
(D) Percentage of children who exit who also meet or exceed spring benchmarks.
(iv) The impact of the programs on organizations and stakeholders, including, but not limited to, school
administrators, internal coaches, and AmeriCorps members.
(b) If the department determines that the Michigan Education Corps has misused the funds allocated under
this subsection, the Michigan Education Corps shall reimburse this state for the amount of state funding misused.
(c) An intermediate district or a consortium of intermediate districts may not reserve any portion of the
allocation provided under this subsection for an evaluation of the Michigan Education Corps, the Michigan
Education Corps’ funding, or the Michigan Education Corps ’ programming unless agreed to in writing by the
Michigan Education Corps. An intermediate district or a consortium of intermediate districts shall award the
entire amount allocated under this subsection to the Michigan Education Corps and sha ll not condition the
forwarding of this funding on the implementation of an independent evaluation.
(9) If a district or intermediate district expends any funding received under subsection (4) or (5) for professional
development in research -based effective reading instruction, the district or intermediate district shall select a
professional development program from the list described in subdivision (a). All of the following apply to the
requirement under this subsection:
(a) The department shall issue a request for proposals for professional development programs in research -
based effective reading instruction to develop an initial approved list of professional development programs in
research-based effective reading instruction. The department shall make the initial approved list public and shall
determine if it will, on a rolling basis, approve any new proposals submitted for addition to its initial approved
list.
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(b) To be included as an approved professional development program in research -based effective reading
instruction under subdivision (a), an applicant must demonstrate to the department in writing the program ’s
competency in all of the following topics:
(i) Understanding of phonemic awareness, phonics, fluency, vocabulary, and comprehension.
(ii) Appropriate use of assessments and differentiated instruction.
(iii) Selection of appropriate instructional materials.
(iv) Application of research-based instructional practices.
(c) As used in this subsection, “effective reading instruction” means reading instruction scientifically proven
to result in improvement in pupil reading skills.
(10) From the allocation under subsection (1), there is allocated an amount not to exceed $10,000,000.00 for
2024-2025 and 2025 -2026 only to an intermediate district identified by the department for the provision of
professional learning by the approved provider described in subsection (11), first to educators in pre -K,
kindergarten, and grade 1 next to educators in grade 2 and grade 3; and then to additional elementary school
educators and pre -K to grade 12 certificated special education personnel with end orsements in learning
disabilities, emotional impairments, or speech and language impairments. For purposes of this subsection, the
approved provider must establish and manage professional learning opportunities that are open to all school
personnel described in this subsection as follows:
(a) The approved provider must first open voluntary enrollment for any pre -K through grade 3 teacher on a
first-come, first-served basis, with voluntary enrollment prioritized for pre-K, kindergarten, and grade 1 teachers.
The approved provider shall then open voluntary enrollment for the remaining school personnel described in this
subsection.
(b) The approved provider must maintain open enrollment until all funds are expended.
(11) For the provision of professional learning to the school personnel described in subsection (10), LETRS is
the approved provider of professional learning as long as LETRS continues to meet all of the following:
(a) Be offered through a system of training that provides educators with the knowledge base to effectively
implement any class-wide, supplemental, or intervention reading approach and to determine why some students
struggle with reading, writing, spelling, and language.
(b) Provide training activities that direct educators to implement effective reading and spelling instruction
supported by scientifically based research and foster a direct explicit instructional sequence that uses techniques
to support teachers’ independence in using their newly-learned skills with students in the classroom.
(c) Include integrated components for educators and administrators in pre -K to grade 3 with embedded
evaluation or assessment of knowledge. Evaluation or assessment of knowledge under this subdivision must
incorporate evaluations of learning throughout eac h unit and include a summative assessment that must be
completed to demonstrate successful course completion.
(d) Build teacher content knowledge and pedagogical knowledge of the critical components of literacy including
how the brain learns to read, phonological and phonemic awareness; letter knowledge; phonics; advanced phonics;
vocabulary and oral language; fluency; comprehension; spelling and writing; and the organization of language.
(e) Support educators in understanding how to effectively use screening, progress monitoring, and diagnostic
assessment data to improve literacy outcomes through prevention and intervention for reading difficulties in a
multi-tiered system of supports. The multi-tiered system of supports must include at least all of the following
essential components:
(i) Team-based leadership.
(ii) A tiered delivery system.
(iii) Selection and implementation of instruction, interventions, and supports.
(iv) A comprehensive screening and assessment system.
(v) Continuous data-based decision making.
(12) Notwithstanding section 17b, the department shall make payments made under subsections (7) and (8)
on a schedule determined by the department.
(13) As used in this section:
(a) “Dyslexia” means both of the following:
(i) A specific learning disorder that is neurobiological in origin and characterized by difficulties with accurate
or fluent word recognition and by poor spelling and decoding abilities that typically result from a deficit in the
phonological component of language that is often u nexpected in relation to other cognitive abilities and the
provision of effective classroom instruction.
(ii) A specific learning disorder that may include secondary consequences, such as problems in reading
comprehension and a reduced reading experience that can impede the growth of vocabulary and background
knowledge and lead to social, emotional, and behavioral difficulties.
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(b) “Evidence-based” means an activity, program, process, service, strategy, or intervention that demonstrates
statistically significant effects on improving pupil outcomes or other relevant outcomes and that meets at least
both of the following:
(i) At least 1 of the following:
(A) Is based on strong evidence from at least 1 well-designed and well-implemented experimental study.
(B) Is based on moderate evidence from at least 1 well -designed and well -implemented quasi-experimental
study.
(C) Is based on promising evidence from at least 1 well -designed and well -implemented correlational study
with statistical controls for selection bias.
(D) Demonstrates a rationale based on high-quality research findings or positive evaluation that the activity,
program, process, service, strategy, or intervention is likely to improve pupil outcomes or other relevant outcomes.
(ii) Includes ongoing efforts to examine the effects of the activity, program, process, service, strategy, or
intervention.
(c) “Explicit” means direct and deliberate instruction through continuous pupil -teacher interaction that
includes teacher modeling, guided practice, and independent practice.
(d) “Fluency” means the ability to read with speed, accuracy, and proper expression.
(e) “Multi-tiered system of supports ” means a comprehensive framework that includes 3 distinct tiers of
instructional support and is composed of a collection of evidence-based strategies designed to meet the individual
needs and assets of a whole pupil at all achievement levels.
(f) “Phonemic awareness” means the conscious awareness of all of the following:
(i) Individual speech sounds, including, but not limited to, consonants and vowels, in spoken syllables.
(ii) The ability to consciously manipulate through, including, but not limited to, matching, blending,
segmenting, deleting, or substituting, individual speech sounds described in subparagraph (i).
(iii) All levels of the speech sound system, including, but not limited to, word boundaries, rhyme recognition,
stress patterns, syllables, onset-rime units, and phonemes.
(g) “Phonological” means relating to the system of contrastive relationships among the speech sounds that
constitute the fundamental components of a language.
(h) “Progress monitoring” means the assessing of students’ academic performance, quantifying students’ rates
of improvement or progress toward goals, and determining how students are responding to instruction.
(i) “Rapid automatized naming (RAN)” means a task that measures how quickly individuals can name objects;
pictures; colors; or symbols, including letters and digits, aloud, which can predict later reading abilities for
preliterate children.

Sec. 35e. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
only an amount not to exceed $250,000.00 to Wayne State University to study this state ’s public school library
programs.
(2) Wayne State University shall convene a committee to conduct the study described in this section. The
committee must consist of 1 member from each of the following organizations:
(a) The department.
(b) The Library of Michigan.
(c) The Michigan Association of School Librarians.
(d) The Michigan senate.
(e) The Michigan house of representatives.
(f) The Michigan Education Association.
(g) The Michigan chapter of the American Federation of Teachers.
(h) The Michigan Association of Superintendents and Administrators.
(i) A Michigan research university.
(3) The committee described in subsection (2) shall conduct a study to investigate at least all of the following
issues:
(a) How many schools in each district have a school library.
(b) What hours school libraries are open each week for students and faculty to use.
(c) What full-time equivalency of certified school librarians are employed at each building.
(d) The ratio of students per certified school librarian.
(e) What full -time equivalency of paraprofessional or other staff are employed in the school library and the
credentialing of these staff, if any.
(f) How school libraries are scheduled.
(g) How many hours each week school librarians provide direct library-related instruction to students.
(h) The technology available for students to access library resources and lessons.
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(i) The size and age of the collection in each school library, and the extent of digital materials available for
students to access.
(j) Current funding per student for school library materials.
(k) Any other matters that the committee considers relevant to the fulfillment of its mission to determine the
status of school library programs in this state.
(4) The department shall provide staff and other resources as the committee described in subsection (2)
considers appropriate, including contracting with a researcher. Appropriate costs must be determined by the
department, and the committee described in s ubsection (2) shall reimburse the department for costs related to
this subsection.
(5) The committee described in subsection (2) may conduct public hearings to gather information, and may
sponsor statewide or regional conferences involving educators, students, or the public at large.
(6) The committee described in subsection (2) shall provide a report to the house and senate appropriations
subcommittees on school aid, the state budget director, the house and senate fiscal agencies, and the department
by not later than December 31, 2026 . The report must create a long -term plan for this state ’s school library
programs that may include the adoption of guidelines for school library facilities, budget, staffing, collection
development, and curriculum standards for school library programs. The final report and recommendations must
include drafts of legislation necessary to carry those recommendations into effect.
(7) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 35m. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
only an amount not to exceed $64,400,000.00 for the purposes described in this section, including payments to
improve educational outcomes in literacy.
(2) The department shall continue the committee for literacy achievement that includes representatives of
higher education and early childhood literacy educators who have expertise in literacy instruction and research.
The committee shall exist until at le ast September 2029. The department shall appoint the members of the
committee for literacy achievement. The department shall develop a process to identify and assemble experts for
the committee. The primary focus of the committee is to recommend tools and strategies with the goal of increasing
student academic outcomes in the area of literacy. The committee is encouraged to collaborate with the Michigan
Education Research Institute or other entities with similar expertise on the subject of literacy. The dep artment
shall determine the size and benchmarks of the committee. The committee shall do all of the following:
(a) Critically evaluate early literacy series and materials. The committee shall evaluate with research -based
outcomes, using the committee ’s expertise in the field of literacy. The committee shall assign grade tiers to the
series based on the series’ likelihood to increase student literacy outcomes. Priority must be given to series that
already have a demonstrated history of increasing student outcomes. The committee may perform an evaluation
under this subdivision based on submissions from a vendor, but m ust independently verify the validity of
information provided by the vendor. The committee is also strongly encouraged to evaluate available materials
not submitted to the department by a vendor.
(b) Critically evaluate literacy professional development. The committee shall evaluate with research -based
outcomes, using the committee ’s expertise in the field of literacy. The committee shall assign grade tiers to the
professional development based on the professional development ’s likelihood to increase student literacy
outcomes. Priority must be given to professional development that already has a demonstrated history of
increasing student outcomes. The committee may perform an evaluation under this s ubdivision based on
submissions from a vendor, but must independently verify the validity of information provided by the vendor. The
committee is also strongly encouraged to evaluate available materials not submitted to the department by a
vendor.
(c) Critically evaluate other applicable literacy tools or services the committee determines to have a high
likelihood or demonstrated history of increasing student literacy outcomes. The committee may perform an
evaluation under this subdivision based on submissions from a vendor, but must independently verify the validity
of information provided by the vendor. The committee is also strongly encouraged to evaluate available materials
not submitted to the department by a vendor.
(d) Create, maintain, and post annually on a publicly available website a rankings list of all early literacy
series and other items the committee has evaluated. This includes items from each part of the rankings list, items
evaluated in the 2024-2025 school year, and any subsequent items evaluated going forward. The committee shall
denote on the list whether major changes have been made to an early literacy series or other item on the list since
the early literacy series or other item was evaluated by the committee and if the early literacy series or other item
has not been evaluated since the last ranking. The rankings list created in this subdivision must align with the
list of evidence-based tier 1, classwide elementary reading curricula and materials that are aligned with science
of reading methods that research has shown to improve literacy outcomes and help pupils achieve reading
proficiency as required under section 1280f of the revised school code, MCL 380.1280f.
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(3) An individual on the committee shall recuse themselves from evaluating early literacy series and other
items that the individual has helped create, that the individual would benefit from financially, or for which the
individual has any other conflict of interest.
(4) From the funds allocated in subsection (1), the department shall make payments to districts and
intermediate districts in an amount determined by the department. The department shall not make payments
under this subsection until it has critically evalu ated as many early literacy series and other items from
subsection (2) as possible. Payments under this subsection must be made during the current fiscal year to support
district implementation in 2026 -2027. The department shall use the rankings list descr ibed in subsection (2) as
the basis for how funding is allocated in subsection (1) to districts and intermediate districts. Districts and
intermediate districts using higher -ranked literacy tools that are proven to increase student outcomes shall
receive more funding than districts and intermediate districts utilizing lower -ranked literacy tools in both the
base award and the per -pupil awards described in this subsection. The department may determine that some
districts and intermediate districts will not r eceive funding under this section based on the effectiveness of the
early literacy series or other items being utilized by the district or intermediate district. The department shall
award funding under this section using the following methodology:
(a) A base award equal to the amount necessary for the district or intermediate district to implement the
chosen early literacy series or other item. The department may place a cap on the total award per district,
intermediate district, or early literacy s eries or other item and may choose not to award funding if the early
literacy series or other item is determined to be ineffective or is determined to be less effective than other choices.
(b) A tiered per -pupil award based on the number of pupils in membership at the district and intermediate
district. The tiered per -pupil award must provide a higher per -pupil payment to districts and intermediate
districts using higher -ranked early literac y series or other items as determined under subsection (2). The
department may choose not to award funding if the early literacy series or other item is determined to be
ineffective or is determined to be less effective than other choices.
(5) From the funding allocated in subsection (1), the department may pay an annual stipend of up to $8,000.00
for each member of the committee for literacy achievement who is employed by or at a public institution of higher
education, a district, or an intermediate district. A stipend must be commensurate with the committee member’s
contribution to the committee. Funding must be paid to the public institution of higher education, the district, or
the intermediate district where the committee member is employed, and the public institution of higher education,
the district, or the intermediate district must then use funding received to award the stipend directly to the
individual committee member. A committee member who is not employed by or at a public instit ution of higher
education, a district, or an intermediate district is not eligible to receive a stipend under this subsection.
(6) To be eligible for funding under this section, a district or intermediate district must apply in a form and
manner determined by the department. As a condition of receiving the funding, the district or intermediate
district must agree to provide to the department information twice a year, on or before May 1 and October 1, on
the early literacy series and other items used for the previous and current school years, and the early literacy
series and other i tems to be used for the next school year. The early literacy series and other items used by
districts and intermediate districts must be added to the annual rankings required under subsection (2).
(7) Except as otherwise provided in this section and notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.
(8) Funds allocated under subsection (1) for 2025-2026 are a work project appropriation, and any unexpended
funds for 2025 -2026 are carried forward into 2026 -2027. The purpose of the work project is to improve literacy
instructional practices. The estimated completion date of the work project is September 30, 2029.
(9) In addition to the allocation under subsection (1), from the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $4,000,000.00 for 2025-2026 only to an intermediate district
in which the combined total number of pupils in membership of all of its constituent districts is the fewest among
all intermediate districts in this state. All of the following apply to the funding under this subsection:
(a) Funding under this subsection must be used by the intermediate district, in partnership with an association
that represents intermediate district administrators in this state, to implement all of the following:
(i) Literacy essentials teacher and principal training modules.
(ii) Face-to-face and online professional learning on literacy essentials teacher and principal training modules
for literacy coaches, principals, and teachers.
(iii) The placement of regional lead literacy coaches to facilitate professional learning for early literacy coaches.
Regional lead literacy coaches described in this subparagraph shall provide support for new literacy coaches,
building teachers, and administrators, and shall facilitate regional data collection to evaluate the effectiveness of
statewide literacy coaches funded under this section.
(iv) A provision of $500,000.00 under this subsection for literacy training, modeling, coaching, and feedback
for district principals or chief administrators, as applicable. The training described in this subparagraph must
use the pre-K and K to 3 essential instructional practices in literacy created by the general education leadership
network as the framework for all training provided under this subparagraph.
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(b) By not later than September 1 of each year, the intermediate district described in this subsection, in
consultation with grant recipients, shall submit a report to the chairs of the senate and house appropriations
subcommittees on school aid, the chair s of the senate and house standing committees responsible for education
legislation, the house and senate fiscal agencies, and the state budget director. The report described in this
subdivision must include student achievement results in English language arts and survey results with feedback
from parents and teachers regarding the initiatives implemented under this subsection.
(c) Up to 2% of funds allocated under this subsection may be used by the association representing intermediate
district administrators that is in partnership with the intermediate district specified in this subsection to
administer this subsection.
(10) In addition to the allocation under subsection (1), from the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $1,600,000.00 for 2025-2026 to expand the implementation
of the literacy and social, emotio nal, and behavioral components of a multi -tiered system of supports, including
positive behavioral interventions and supports, using the Michigan Multi -Tiered System of Supports Technical
Assistance Center. Both of the following apply to funds allocated under this subsection:
(a) The department shall use funds allocated under this subsection, through an intermediate district, for the
purpose of expanding the statewide expertise, technical assistance, and implementation of the multi-tiered system
of supports, dyslexia expertise, and evidence-based instructional practices grounded in the science of reading
using the Michigan Multi -Tiered System of Supports Technical Assistance Center, a nationally recognized
program. In addition, the department shall identify an intermediate district to act as a fiscal agent for these funds.
(b) Up to 2% of funds allocated under this subsection may be used by the intermediate district serving as the
fiscal agent for these funds to administer this subsection.

Sec. 39. (1) An eligible applicant receiving funds under section 32d shall submit an application, in a form and
manner prescribed by the department of lifelong education, advancement, and potential, by a date specified by
the department of lifelong education, advancement, and potential in the immediately p receding fiscal year. An
eligible applicant is not required to amend the applicant’s current accounting cycle or adopt this state’s fiscal year
accounting cycle in accounting for financial transactions under this section. The application must include all o f
the following:
(a) The estimated total number of age-eligible children in the community, as provided to the applicant by the
department of lifelong education, advancement, and potential utilizing the most recent population data available
from the American Community Survey conducted by the United States Census Bureau. The department of lifelong
education, advancement, and potential shall ensure that it provides updated American Community Survey
population data at least once every 3 years.
(b) The estimated number of age -eligible children in the community who are being served exclusively by
Head Start programs operating in the community.
(c) The number of children whom the applicant will have the capacity to serve in each eligible great start
readiness program option who meet the age-eligible criteria of section 32d.
(2) The great start readiness target foundation amount for 2025-2026 is $10,650.00.
(3) After notification of funding allocations, an applicant receiving funds under section 32d shall also submit
an implementation plan for approval, in a form and manner prescribed by the department of lifelong education,
advancement, and potential, by a d ate specified by the department of lifelong education, advancement, and
potential, that details how the applicant complies with the program components established by the department
of lifelong education, advancement, and potential under section 32d.
(4) Subject to subsection (5), the initial allocation to each eligible applicant under section 32d is equal to the
sum of the following:
(a) The number of children in the current school year served in a program determined by the department of
lifelong education, advancement, and potential to be a school-day program multiplied by the great start readiness
target foundation.
(b) The number of children in the current school year served in a program determined by the department of
lifelong education, advancement, and potential to be a part-day program or a school-day blended with Head Start
multiplied by the great start readiness target foundation divided by 2.
(c) The total number of children in the current school year served in a program determined by the department
of lifelong education, advancement, and potential to be an extended program multiplied by the great start
readiness target foundation multiplied by 1.2.
(d) The number of children in the current school year served in a program determined by the department of
lifelong education, advancement, and potential to be an extended program blended with Head Start or a part-day
extended program multiplied by the great start readiness target foundation multiplied by 0.6.
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(5) Subject to subsection (6), if the calculations under subsection (4) result in a total allocation exceeding the
amount available as allocated or appropriated under section 32d(2), initial allocations to each eligible applicant
under section 32d are calculated as the sum of the following:
(a) An amount equal to the calculations described in subsection (4) but using for those calculations the lesser
of the number of children served in the immediately preceding fiscal year or the number of children the applicant
has the capacity to serve in t he current fiscal year instead of the number of children served in the current fiscal
year.
(b) An amount equal to the remaining available dollars after calculations in subdivision (a) distributed
proportionately to eligible applicants where calculations under subdivision (a) are less than the amount originally
calculated under subsection (4).
(6) If the calculations under subsection (5) result in a total allocation exceeding the amount available as
allocated or appropriated under section 32d(2), the initial allocation to each eligible applicant is the amount
calculated under subsection (4) prorated on an equal percentage basis.
(7) If, taking into account the total amount to be allocated to the applicant as calculated under this section, an
applicant determines that it is able to include additional eligible children in the great start readiness program
without additional funds un der section 32d, the applicant may include additional eligible children but does not
receive additional funding under section 32d for those children.
(8) The department of lifelong education, advancement, and potential shall review the program components
under section 32d and under this section at least biennially. The department of lifelong education, advancement,
and potential also shall convene a committee of internal and external stakeholders at least once every 5 years to
ensure that the funding structure under this section reflects current system needs under section 32d.

Sec. 39a. (1) From the federal funds appropriated in section 11, there is allocated for 2025 -2026 to districts,
intermediate districts, and other eligible entities all available federal funding, estimated at $824,700,000.00, for
the federal programs under the no child left behind act of 2001, Public Law 107-110, or the every student succeeds
act, Public Law 114-95. These funds are allocated as follows:
(a) An amount estimated at $1,200,000.00 for 2025 -2026 to provide students with drug - and violence -
prevention programs and to implement strategies to improve school safety, funded from DED -OESE, drug-free
schools and communities funds.
(b) An amount estimated at $100,000,000.00 for 2025 -2026 for the purpose of preparing, training, and
recruiting high-quality teachers and class size reduction, funded from DED -OESE, improving teacher quality
funds.
(c) An amount estimated at $13,000,000.00 for 2025 -2026 for programs to teach English to limited English
proficient (LEP) children, funded from DED-OESE, language acquisition state grant funds.
(d) An amount estimated at $2,800,000.00 for 2025 -2026 for rural and low -income schools, funded from
DED-OESE, rural and low income school funds.
(e) An amount estimated at $585,000,000.00 for 2025 -2026 to provide supplemental programs to enable
educationally disadvantaged children to meet challenging academic standards, funded from DED -OESE, title I,
disadvantaged children funds.
(f) An amount estimated at $9,200,000.00 for 2025 -2026 for the purpose of identifying and serving migrant
children, funded from DED-OESE, title I, migrant education funds.
(g) An amount estimated at $40,400,000.00 for 2025 -2026 for the purpose of providing high-quality extended
learning opportunities, after school and during the summer, for children in low -performing schools, funded from
DED-OESE, twenty-first century community learning center funds.
(h) An amount estimated at $14,000,000.00 for 2025 -2026 to help support local school improvement efforts,
funded from DED-OESE, title I, local school improvement grants.
(i) An amount estimated at $55,000,000.00 for 2025 -2026 to improve the academic achievement of students,
funded from DED-OESE, title IV, student support and academic enrichment grants.
(j) An amount estimated at $3,100,000.00 for 2025 -2026 for literacy programs that advance literacy skills for
students from birth through grade 12, including, but not limited to, English-proficient students and students with
disabilities, funded from DED-OESE, striving readers comprehensive literacy program.
(k) An amount estimated at $1,000,000.00 for 2025 -2026 for grants to support and demonstrate innovative
partnerships to train school -based mental health service providers, funded from DED -OESE, mental health
service professional demonstration grant program.
(2) From the federal funds appropriated in section 11, there is allocated to districts, intermediate districts, and
other eligible entities all available federal funding, estimated at $66,415,000.00 for 2025 -2026 for the following
programs that are funded by federal grants:
(a) An amount estimated at $3,000,000.00 for 2025 -2026 to provide services to homeless children and youth,
funded from DED-OVAE, homeless children and youth funds.
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(b) An amount estimated at $30,000,000.00 for 2025-2026 for providing career and technical education services
to pupils, funded from DED-OVAE, basic grants to states.
(c) An amount estimated at $14,000,000.00 for 2025 -2026 for the Michigan charter school subgrant program,
funded from DED–OII, public charter schools program funds.
(d) An amount estimated at $17,700,000.00 for 2025 -2026 for the purpose of promoting and expanding high -
quality preschool services, funded from HHS–OCC, preschool development funds.
(e) An amount estimated at $1,715,000.00 for 2025-2026 for the purpose of addressing priority substance abuse
treatment, prevention, and mental health needs, funded from HHS-SAMHSA.
(3) The department, or, for subsections (1)(g) and (2)(d), the department of lifelong education, advancement,
and potential, shall distribute all federal funds allocated under this section in accordance with federal law and
with flexibility provisions outlined in Public Law 107-116, and in the education flexibility partnership act of 1999,
Public Law 106 -25. Notwithstanding section 17b, the department or the department of lifelong education,
advancement, and potential, as applicable, shall make payments of federal funds to districts, intermediate
districts, and other eligible entities under this section on a schedule determined by the department.
(4) For the purposes of applying for federal grants appropriated under this article, the department, or, for
subsections (1)(g) and (2)(d), the department of lifelong education, advancement, and potential, shall allow an
intermediate district to submit a c onsortium application on behalf of 2 or more districts with the agreement of
those districts as appropriate according to federal rules and guidelines.
(5) For the purposes of funding federal title I grants under this article, in addition to any other federal grants
for which the strict discipline academy is eligible, the department, or, for subsections (1)(g) and (2)(d), the
department of lifelong education, advancement, and potential, shall allocate to a strict discipline academy out of
title I, part A an amount equal to what the strict discipline academy would have received if included and calculated
under title I, part D, or what it would receive under the formula allocation under title I, part A, whichever is
greater.
(6) As used in this section:
(a) “DED” means the United States Department of Education.
(b) “DED-OESE” means the DED Office of Elementary and Secondary Education.
(c) “DED-OII” means the DED Office of Innovation and Improvement.
(d) “DED-OVAE” means the DED Office of Vocational and Adult Education.
(e) “HHS” means the United States Department of Health and Human Services.
(f) “HHS-OCC” means the HHS Office of Child Care.
(g) “HHS-SAMHSA” means the HHS Substance Abuse and Mental Health Services Project.

Sec. 41. (1) For a district to be eligible to receive funding under this section, the district must administer to
English language learners the English language proficiency assessment known as the “WIDA ACCESS for
English language learners” or the “WIDA Alternate ACCESS”. From the state school aid fund money appropriated
in section 11, there is allocated an amount not to exceed $62,732,600.00 for 2025 -2026 for payments to eligible
districts for services for English language learners who have been administer ed the WIDA ACCESS for English
language learners. Services for English language learners under this section may include software used to assist
learning.
(2) The department shall distribute funding allocated under subsection (1) to eligible districts based on the
number of full-time equivalent English language learners as follows:
(a) $2,329.00 per full -time equivalent English language learner who has been assessed under the WIDA
ACCESS for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA
Alternate ACCESS composite score between 1.0 and 1.9, or less, as applicable to each assessment. It is the intent
of the legislature to increase this amount until it reaches 75% of the target foundation allowance.
(b) $1,608.00 per full -time equivalent English language learner who has been assessed under the WIDA
ACCESS for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA
Alternate ACCESS composite score between 2.0 and 2.9, or less, as applicable to each assessment. It is the intent
of the legislature to increase this amount until it reaches 50% of the target foundation allowance.
(c) $263.00 per full-time equivalent English language learner who has been assessed under the WIDA ACCESS
for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate
ACCESS composite score between 3.0 and 3.9, or less, a s applicable to each assessment. It is the intent of the
legislature to increase this amount until it reaches 35% of the target foundation allowance.
(3) If funds allocated under subsection (1) are insufficient to fully fund the payments as prescribed under
subsection (2), the department shall prorate payments on an equal percentage basis, with the same percentage
proration applied to all funding categories.
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(4) By October 15 of the fiscal year following the receipt of funding under subsection (1), each district receiving
funds under subsection (1) shall submit to the department a report, not to exceed 10 pages, on the usage by the
district of funds under subsection (1) in a form and manner determined by the department, including a brief
description of each program conducted or services performed by the district using funds under subsection (1) and
the amount of funds under subsection (1) allocated to each of those programs or services. If a district does not
comply with this subsection, the department shall withhold an amount equal to the December payment due under
this section until the district complies with this subsection. If the district does not comply with this subsection by
the end of the fiscal year, the withheld funds are forfeited to the state school aid fund.
(5) To receive funds under subsection (1), a district must allow access for the department or the department ’s
designee to audit all records related to the program for which it receives those funds. The district shall reimburse
this state for all disallowances found in the audit.
(6) Beginning July 1, 2020, and every 3 years thereafter, the department shall review the per-pupil distribution
under subsection (2), to ensure that funding levels are appropriate and make recommendations for adjustments
to the members of the senate and house subcommittees on K to 12 school aid appropriations.
(7) The department shall establish English language learner program models that establish a minimum
number of minutes per week that districts must provide direct English language development instruction for
students according to the student’s proficiency levels. These models must be compliant with federal requirements
related to English language learner program services. To be considered an eligible recipient of funding under this
section, a district must agree to meet or exceed the minimum number of minutes per week, as determined by the
department, that the district provides direct English language development instruction.

Sec. 41b. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025
only an amount not to exceed $2,000,000.00 for KEYS Grace Academy to, in partnership with Kalasho Education
and Youth Services in Warren, provide English-as-a-second-language services, provide early childhood learning,
improve progress toward high school graduation attainment, and provide K to 12 education -support services to
legal immigrants.
(2) The funds allocated in this section are a work project appropriation, and any unexpended funds for 2024 -
2025 are carried forward into 2025-2026. The purpose of the work project is to continue to provide English -as-a-
second-language services, provide ea rly childhood learning, improve progress toward high school graduation
attainment, and provide K to 12 education -support services to legal immigrants. The estimated completion date
of the work project is September 30, 2026.

Sec. 51a. (1) From the state school aid fund money in section 11, there is allocated an amount not to exceed
$2,028,696,100.00 for 2024-2025 and there is allocated an amount not to exceed $2,219,596,100.00 for 2025-2026
from state sources and all available federal funding under sections 1411 to 1419 of part B of the individuals with
disabilities education act, 20 USC 1411 to 1419, estimated at $450,000,000.00 for 2024-2025 and $500,000,000.00
for 2025-2026, plus any carryover federal funds from previous yea r appropriations. The allocations under this
subsection are for the purpose of reimbursing districts and intermediate districts for special education programs,
services, and special education personnel as prescribed in article 3 of the revised school code, MCL 380.1701 to
380.1761; net tuition payments made by intermediate districts to the Michigan Schools for the Deaf and Blind;
and special education programs and services for pupils who are eligible for special education programs and
services according to statute or rule. For meeting the costs of special education programs and services not
reimbursed under this article, a district or intermediate district may use money in general funds or special
education funds, not otherwise restricted, or contributions f rom districts to intermediate districts, tuition
payments, gifts and contributions from individuals or other entities, or federal funds that may be available for
this purpose, as determined by the intermediate district plan prepared under article 3 of the revised school code,
MCL 380.1701 to 380.1761. Notwithstanding section 17b, the department shall make payments of federal funds
to districts, intermediate districts, and other eligible entities under this section on a schedule determined by the
department.
(2) From the funds allocated under subsection (1), there is allocated the amount necessary, estimated at
$441,400,000.00 for 2024 -2025 and $492,400,000.00 for 2025 -2026, for payments toward reimbursing districts
and intermediate districts for 28.6138% of t otal approved costs of special education, excluding costs reimbursed
under section 53a, and 70.4165% of total approved costs of special education transportation.
(3) If the department determines that the amount allocated for a fiscal year to a district or intermediate district
under subsection (2) is insufficient to fulfill the specified percentages in subsection (2), the department shall pay
the shortfall to the district or intermediate district during the fiscal year beginning on the October 1 following the
determination. If the department determines that the amount allocated for a fiscal year to a district or
intermediate district under subsection (2) exceeds the sum of the amount necessary to fulfill the specified
percentages in subsection (2), the department shall deduct the amount of the excess from the district ’s or
intermediate district’s payments under this article for the fiscal year beginning on the October 1 following the
determination.
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(4) State funds are allocated on a total approved cost basis. Federal funds are allocated under applicable federal
requirements.
(5) From the amount allocated in subsection (1), there is allocated an amount not to exceed $3,200,000.00 for
2024-2025 and 2025 -2026 to reimburse 100% of the net increase in necessary costs incurred by a district or
intermediate district in implementing the revisions in the administrative rules for special education that became
effective on July 1, 1987. As used in this su bsection, “net increase in necessary costs ” means the necessary
additional costs incurred solely because of new or revised requirements in the administrative rules minus cost
savings permitted in implementing the revised rules. The department shall determine net increase in necessary
costs in a manner specified by the department.
(6) For purposes of this section and sections 51b to 58, all of the following apply:
(a) “Total approved costs of special education ” are determined in a manner specified by the department and
may include indirect costs, but must not exceed 115% of approved direct costs for section 52 and section 53a
programs. The total approved costs include salary and other compensation for all approv ed special education
personnel for the program, including payments for Social Security and Medicare and public school employee
retirement system contributions. The total approved costs do not include salaries or other compensation paid to
administrative personnel who are not special education personnel as that term is defined in section 6 of the revised
school code, MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included in the
allocation made under this article, are not included. Special education approved personnel not utilized full time
in the evaluation of students or in the delivery of special education programs, ancillary, and other related services
are reimbursed under this s ection only for that portion of time actually spent providing these programs and
services, with the exception of special education programs and services provided to youth placed in child caring
institutions or juvenile detention programs approved by the de partment to provide an on -grounds education
program.
(b) Reimbursement for ancillary and other related services, as that term is defined by R 340.1701c of the
Michigan Administrative Code, is not provided when those services are covered by and available through private
group health insurance carriers or federal reimbursed program sources unless the department and district or
intermediate district agree otherwise and that agreement is approved by the state budget director. Expenses ,
other than the incidental expense of filing, must not be borne by the parent. In addition, the filing of claims must
not delay the education of a pupil. A district or intermediate district is responsible for payment of a deductible
amount and for an advance payment required until the time a claim is paid.
(c) If an intermediate district purchases a special education pupil transportation service from a constituent
district that was previously purchased from a private entity; if the purchase from the constituent district is at a
lower cost, adjusted for changes in fuel costs; and if the cost shift from the intermediate district to the constituent
does not result in any net change in the revenue the constituent district receives from payments under
sections 22b and 51c, then upon application by the intermediate district, the department shall direct the
intermediate district to continue to report the cost associated with the specific identified special education pupil
transportation service and shall adjust the costs reported by the constituent district to remove the cost associated
with that specific service.
(7) A pupil who is enrolled in a full -time special education program conducted or administered by an
intermediate district or a pupil who is enrolled in the Michigan Schools for the Deaf and Blind is not included in
the membership count of a district, but is counted in membership in the intermediate district of residence.
(8) Special education personnel transferred from 1 district to another to implement the revised school code are
entitled to the rights, benefits, and tenure to which the individual would otherwise be entitled had that individual
been employed by the receiving district originally.
(9) If a district or intermediate district uses money received under this section for a purpose other than the
purpose or purposes for which the money is allocated, the department may require the district or intermediate
district to refund the amount of money received. The department shall deposit money that is refunded in the state
treasury to the credit of the state school aid fund.
(10) From the funds allocated in subsection (1), there is allocated the amount necessary, estimated at
$1,600,000.00 for 2024-2025 and estimated at $1,600,000.00 for 2025-2026, to pay the foundation allowances for
pupils described in this subsection. The department shall calculate the allocation to a district under this
subsection by multiplying the number of pupils described in this subsection who are counted in membership in
the district times the sum of the foundation allowance under section 20 of the pu pil’s district of residence, plus
the amount of the district’s per-pupil allocation under section 20m, not to exceed the target foundation allowance
for the current fiscal year, or, for a pupil described in this subsection who is counted in membership in a district
that is a public school academy, times an amount equal to the amount per membership pupil under section 20(6).
The department shall calculate the allocation to an intermediate district under this subsection in the same
manner as for a district, using the foundation allowance under section 20 of the pupil’s district of residence not to
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exceed the target foundation allowance for the current fiscal year and that district ’s per-pupil allocation under
section 20m. This subsection applies to all of the following pupils:
(a) Pupils described in section 53a.
(b) Pupils counted in membership in an intermediate district who are not special education pupils and are
served by the intermediate district in a juvenile detention or child caring facility.
(c) Pupils with an emotional impairment counted in membership by an intermediate district and provided
educational services by the department of health and human services.
(11) If it is determined that funds allocated under subsection (2) or (10) or under section 51c will not be
expended, funds up to the amount necessary and available may be used to supplement the allocations under
subsection (2) or (10) or under section 51c to fully fund those allocations. After payments under subsections (2)
and (10) and section 51c, the department shall expend the remaining funds from the allocation in subsection (1)
in the following order:
(a) One hundred percent of the reimbursement required under section 53a.
(b) One hundred percent of the reimbursement required under subsection (5).
(c) One hundred percent of the payment required under section 54.
(d) One hundred percent of the payments under section 56.
(12) The allocations under subsections (2) and (10) are allocations to intermediate districts only and are not
allocations to districts, but instead are calculations used only to determine the state payments under section 22b.
(13) If a public school academy that is not a cyber school, as that term is defined in section 551 of the revised
school code, MCL 380.551, enrolls under this section a pupil who resides outside of the intermediate district in
which the public school acade my is located and who is eligible for special education programs and services
according to statute or rule, or who is a child with a disability, as that term is defined under the individuals with
disabilities education act, Public Law 108 -446, the intermed iate district in which the public school academy is
located and the public school academy shall enter into a written agreement with the intermediate district in which
the pupil resides for the purpose of providing the pupil with a free appropriate public education, and the written
agreement must include at least an agreement on the responsibility for the payment of the added costs of special
education programs and services for the pupil. If the public school academy that enrolls the pupil does not enter
into an agreement under this subsection, the public school academy shall not charge the pupil ’s resident
intermediate district or the intermediate district in which the public school academy is located the added costs of
special education programs and services for the pupil, and the public school academy is not eligible for any payouts
based on the funding formula outlined in the resident or nonresident intermediate district’s plan. If a pupil is not
enrolled in a public school academy under this subsection, the provision of special education programs and services
and the payment of the added costs of special education programs and services for a pupil described in this
subsection are the responsibility of the district and intermediate district in which the pupil resides.
(14) For the purpose of receiving its federal allocation under part B of the individuals with disabilities
education act, Public Law 108 -446, a public school academy that is a cyber school, as that term is defined in
section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school
code, MCL 380.553a, directly receives the federal allocation under part B of the individuals with disabilities
education act, Public Law 108 -446, from the intermediate district in w hich the cyber school is located, as the
subrecipient. If the intermediate district does not distribute the funds described in this subsection to the cyber
school by the part B application due date of July 1, the department may distribute the funds describ ed in this
subsection directly to the cyber school according to the formula prescribed in 34 CFR 300.705 and 34 CFR 300.816.
Beginning July 1, 2021, this subsection is subject to section 8c. It is the intent of the legislature that the
immediately preceding sentence apply retroactively and is effective July 1, 2021.
(15) For a public school academy that is a cyber school, as that term is defined in section 551 of the revised
school code, MCL 380.551, and is in compliance with section 553a of the revised school code, MCL 380.553a, that
enrolls a pupil under this section, the intermediate district in which the cyber school is located shall ensure that
the cyber school complies with sections 1701a, 1703, 1704, 1751, 1752, 1756, and 1757 of the revised school code,
MCL 380.1701a, 380.1703, 380.1704, 380.1751, 380.1752, 380 .1756, and 380.1757; applicable rules; and the
individuals with disabilities education act, Public Law 108-446. Beginning July 1, 2021, this subsection is subject
to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is
effective July 1, 2021.
(16) For the purposes of this section, the department or the center shall only require a district or intermediate
district to report information that is not already available from the financial information database maintained by
the center.

Sec. 51c. As required by the court in the consolidated cases known as Durant v State of Michigan, 456 Mich 175
(1997), from the allocation under section 51a(1), there is allocated for 2024-2025 and for 2025-2026 the amount
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necessary, estimated at $993,100,000.00 for 2024 -2025 and $1,107,900,000.00 for 2025 -2026, for payments to
reimburse districts for 28.6138% of total approved costs of special education excluding costs reimbursed under
section 53a, and 70.4165% of total approved costs of special education transportation. Funds allocated under this
section that are not expended in the fiscal year for which they were allocated, as determined by the department,
may be used to supplement the allocations under sections 22a and 22b to fully fund those allocations for the same
fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section 11, there is allocated for 2025 -2026 all available
federal funding, estimated at $83,000,000.00, for special education programs and services that are funded by
federal grants. The department shall distribute all federal funds allocated under this section in accordance with
federal law. Notwithstanding section 17b, the department shall make payments of federal funds to districts,
intermediate districts, and other eligible entities under this section on a schedule determined by the department.
(2) From the federal funds allocated under subsection (1), the following amounts are allocated:
(a) For 2025-2026, an amount estimated at $14,000,000.00 for handicapped infants and toddlers, funded from
DED-OSERS, handicapped infants and toddlers funds.
(b) For 2025 -2026, an amount estimated at $14,000,000.00 for preschool grants under Public Law 94 -142,
funded from DED-OSERS, handicapped preschool incentive funds.
(c) For 2025 -2026, an amount estimated at $55,000,000.00 for special education programs funded by
DED-OSERS, handicapped program, individuals with disabilities act funds.
(3) As used in this section, “DED-OSERS” means the United States Department of Education Office of Special
Education and Rehabilitative Services.

Sec. 51e. (1) From the allocation under section 51a(1), there is allocated for the amount necessary, estimated
at $503,000,000.00 for 2024-2025 and $528,100,000.00 for 2025-2026, for payments to districts and intermediate
districts for 100% of foundation allowance costs associated with special education pupils.
(2) The department shall calculate the amount allocated to a district under this section by multiplying the
district’s special education pupil membership, excluding pupils described in section 51a(11), times 100% of the
foundation allowance under section 20 of the pupil’s district of residence, plus 100% of the amount of the district’s
per-pupil allocation under section 20m, not to exceed 100% of the target foundation allowance for the current
fiscal year, or, for a special education pupil in membership in a district that is a public school academy, times an
amount equal to 100% of the amount per membership pupil calculated under section 20(6). For an intermediate
district, the amount allocated under this subsection is an amount per special education members hip pupil,
excluding pupils described in section 51a(11), and is calculated in the same manner as for a district, using 100%
of the foundation allowance under section 20 of the pupil ’s district of residence, not to exceed 100% of the target
foundation allowance for the current fiscal year, and 100% of that district’s per-pupil allocation under section 20m.

Sec. 51g. From the general fund money appropriated in section 11, $3,000,000.00 is allocated for 2025-2026 to
an association for administrators of special education services to develop content for use by special education
students, teachers, and others. An y content that is developed as described in this section must be accessible
throughout this state. Funds received by an association under this section may be used to support the development
of assessment tools to measure the needs of students with special education needs in remote learning
environments and the effectiveness of various educational methods and tools, in collaboration with the
department. Funds under this section may also be utilized to identify any available federal funds for research
related to special education in remote learning.

Sec. 53a. (1) For districts, reimbursement for pupils described in subsection (2) is 100% of the total approved
costs of operating special education programs and services approved by the department and included in the
intermediate district plan adopted und er article 3 of the revised school code, MCL 380.1701 to 380.1761, minus
the district’s foundation allowance calculated under section 20 and minus the district’s per-pupil allocation under
section 20m. For intermediate districts, the department shall calcu late reimbursement for pupils described in
subsection (2) in the same manner as for a district, using the foundation allowance under section 20 of the pupil’s
district of residence, not to exceed the target foundation allowance under section 20 for the current fiscal year
plus the amount of the district’s per-pupil allocation under section 20m.
(2) Reimbursement under subsection (1) is for the following special education pupils:
(a) Pupils assigned to a district or intermediate district through the community placement program of the
courts or a state agency, if the pupil was a resident of another intermediate district at the time the pupil came
under the jurisdiction of the court or a state agency.
(b) Pupils who are residents of institutions operated by the department of health and human services.
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(c) Pupils who are former residents of department of community health institutions for the developmentally
disabled who are placed in community settings other than the pupil’s home.
(d) Pupils enrolled in a department -approved on-grounds educational program longer than 180 days, but not
longer than 233 days, at a residential child care institution, if the child care institution offered in 1991 -92 an
on-grounds educational program longer than 180 days but not longer than 233 days.
(e) Pupils placed in a district by a parent for the purpose of seeking a suitable home, if the parent does not
reside in the same intermediate district as the district in which the pupil is placed.
(3) Only those costs that are clearly and directly attributable to educational programs for pupils described in
subsection (2), and that would not have been incurred if the pupils were not being educated in a district or
intermediate district, are reimbursable under this section.
(4) The costs of transportation are funded under this section and are not reimbursed under section 58.
(5) The department shall not allocate more than $10,500,000.00 of the allocation for 2025 -2026 in
section 51a(1) under this section.

Sec. 54. Each intermediate district receives an amount per pupil for each pupil in attendance at the Michigan
Schools for the Deaf and Blind. The amount is proportionate to the total instructional cost at each school. The
department shall not allocate more than $1,688,000.00 of the allocation for 2025-2026 in section 51a(1) under this
section.

Sec. 54d. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $23,670,700.00 for 2025-2026 to intermediate districts for the purpose of providing state early on
services programs for children from birth to 3 years of age with a developmental delay or a disability, or both, and
their families, as described in the early on Michigan state plan, as approved by the department of lifelong
education, advancement, and potential.
(2) To be eligible to receive grant funding under this section, each intermediate district must apply in a form
and manner determined by the department of lifelong education, advancement, and potential.
(3) The grant funding allocated under this section must be used to increase early on services and resources
available to children that demonstrate developmental delays to help prepare them for success as they enter school.
State early on services include e valuating and providing early intervention services for eligible infants and
toddlers and their families to address developmental delays, including those affecting physical, cognitive,
communication, adaptive, social, or emotional development. Grant funds must not be used to supplant existing
services that are currently being provided.
(4) The department of lifelong education, advancement, and potential shall distribute the funds allocated
under subsection (1) to intermediate districts according to the department of lifelong education, advancement,
and potential’s early on funding formula utilized to distribute the federal award to Michigan under part C of the
individuals with disabilities education act, Public Law 108 -446. Funds received under this section must not
supplant existing funds or resources allocated f or early on early interve ntion services. An intermediate district
receiving funds under this section shall maximize the capture of Medicaid funds to support early on early
intervention services to the extent possible.
(5) Each intermediate district that receives funds under this section shall report data and other information
to the department of lifelong education, advancement, and potential in a form, manner, and frequency prescribed
by the department of lifelong education, advancement, and potential to allow for monitoring and evaluation of the
program and to ensure that the children described in subsection (1) received appropriate levels and types of
services delivered by qualified personnel, based on the individual needs of the children and their families.
(6) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make
payments under this section on a schedule determined by the department of lifelong education, advancement, and
potential.
(7) Grant funds awarded and allocated to an intermediate district under this section must be expended by the
grant recipient before June 30 of the fiscal year immediately following the fiscal year in which the funds were
received.

Sec. 55. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$500,000.00 for 2024-2025 only to the Conductive Learning Center operating in cooperation with Grand Valley
State University. This funding must be used to support the operational costs of the conductive education model
taught at the Conductive Learning Center to maximize the independence and mobility of children and adults with
neuromotor disabilities. The conductive education model funded under this section must be based on the concept
of neuroplasticity and the ability of people to learn and improve when they are motivated, regardless of the
severity of their disability.
(2) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
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Sec. 56. (1) For the purposes of this section:
(a) “Membership” means for a particular fiscal year the total membership of the intermediate district and the
districts constituent to the intermediate district, except that if a district has elected not to come under part 30 of
the revised school code, MCL 380.1711 to 380.1741, membership of the district is not included in the membership
of the intermediate district.
(b) “Millage levied” means the millage levied for special education under part 30 of the revised school code,
MCL 380.1711 to 380.1741, including a levy for debt service obligations.
(c) “Taxable value” means the total taxable value of the districts constituent to an intermediate district, except
that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1741,
taxable value of the district is not included in the taxable value of the intermediate district.
(2) From the allocation under section 51a(1), there is allocated an amount not to exceed $40,008,100.00 for
2024-2025 and $40,008,100.00 for 2025 -2026 to reimburse intermediate districts levying millages for special
education under part 30 of the revised school code, MCL 380.1711 to 380.1741. The purpose, use, and expenditure
of the reimbursement are limited as if the funds were generated by these millages and governed by the
intermediate district plan adopted under article 3 of the revised school code, MCL 380.1701 to 380.1761. As a
condition of receiving funds under this section, an intermediate district distributing any portion of special
education millage funds to its constituent districts must submit for departmental approval and implement a
distribution plan.
(3) Except as otherwise provided in this subsection, reimbursement for those millages levied in 2023 -2024 is
made in 2024-2025 at an amount per 2023-2024 membership pupil computed by subtracting from $260,200.00 the
2023-2024 taxable value behind each memb ership pupil and multiplying the resulting difference by the 2023 -
2024 millage levied, and then subtracting from that amount the 2023 -2024 local community stabilization share
revenue for special education purposes and 2023 -2024 tax increment revenues captu red by a brownfield
redevelopment authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2670, behind each membership pupil for reimbursement of personal property exemption loss under the
local community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid
under section 26d for tax increment revenues captured by a brownfield redevelopment authority under the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 t o 125.2670. For the purposes of the
calculation described in the previous sentence only, for an intermediate district receiving funds under this section
and section 62, reimbursements paid under section 26d must be multiplied by the ratio of special educat ion
millage levied, as defined in this section, and the sum of special education millage levied and vocational-technical
education millage levied, as defined in section 62. Reimbursement in 2024-2025 for an intermediate district whose
2017-2018 allocation was affected by the operation of subsection (5) is an amount equal to 102.5% of the 2017 -
2018 allocation to that intermediate district.
(4) Except as otherwise provided in this subsection, reimbursement for those millages levied in 2024 -2025 is
made in 2025-2026 at an amount per 2024-2025 membership pupil computed by subtracting from $278,500.00 the
2024-2025 taxable value behind each memb ership pupil and multiplying the resulting difference by the 2024 -
2025 millage levied, and then subtracting from that amount the 2024 -2025 local community stabilization share
revenue for special education purposes and 2024 -2025 tax increment revenues captu red by a brownfield
redevelopment authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2670, behind each membership pupil for reimbursement of personal property exemption loss under the
local community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid
under section 26d for tax increment revenues captured by a brownfield redevelopment authority under the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 t o 125.2670. For the purposes of the
calculation described in the previous sentence only, for an intermediate district receiving funds under this section
and section 62, reimbursements paid under section 26d must be multiplied by the ratio of special educat ion
millage levied, as defined in this section, and the sum of special education millage levied and vocational-technical
education millage levied, as defined in section 62. Reimbursement in 2025-2026 for an intermediate district whose
2017-2018 allocation was affected by the operation of subsection (5) is an amount equal to 102.5% of the 2017 -
2018 allocation to that intermediate district.
(5) The department shall ensure that the amount paid to a single intermediate district under subsection (2)
does not exceed 62.9% of the total amount allocated under subsection (2).
(6) The department shall ensure that the amount paid to a single intermediate district under subsection (2) is
not less than 75% of the amount allocated to the intermediate district under subsection (2) for the immediately
preceding fiscal year.
(7) From the allocation under section 51a(1), there is allocated an amount not to exceed $34,200,000.00 for
2024-2025 and 2025 -2026 to provide payments to intermediate districts levying millages for special education
under part 30 of the revised school cod e, MCL 380.1711 to 380.1741. The purpose, use, and expenditure of the
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payments under this subsection are limited as if the funds were generated by these millages and governed by the
intermediate district plan adopted under article 3 of the revised school code, MCL 380.1701 to 380.1761. The
department shall provide a payment under this subsection to each intermediate district described in this
subsection as follows:
(a) For 2024-2025 and 2025-2026, except as otherwise provided in this subsection, for an intermediate district
with a 3-year average special education millage revenue per pupil in the immediately preceding fiscal year that
is less than $251.00 and that is levying at least 46.2% but less than 60.0% of its maximum millage rate allowed
under section 1724a of the revised school code, MCL 380.1724a, an amount computed by subtracting from $251.00
the 3-year average special education millage revenue per pupil in the immediately preceding fiscal year and, only
if the millage levied by the intermediate district is less than 1, multiplying that amount by the number of mills
levied divided by 1, and then multiplying that amount by the 3 -year average membership in the i mmediately
preceding fiscal year, and then subtracting from that amount the amount allocated under subsection (2) for the
current fiscal year. If the calculation under this subdivision results in an amount below zero, there is no payment
under this subdivision.
(b) For 2024-2025 and 2025-2026, except as otherwise provided in this subsection, for an intermediate district
with a 3-year average special education millage revenue per pupil in the immediately preceding fiscal year that
is less than $296.00 and that is levying at least 60.0% of its maximum millage rate allowed under section 1724a
of the revised school code, MCL 380.1724a, an amount computed by subtracting from $296.00 the 3-year average
special education millage revenue per pupil in the immediately prece ding fiscal year, and, only if the millage
levied by the intermediate district is less than 1, multiplying that amount by the number of mills levied divided
by 1, and then multiplying that amount by the 3 -year average membership in the immediately precedin g fiscal
year, and then subtracting from that amount the amount allocated under subsection (2) for the current fiscal year.
If the calculation under this subdivision results in an amount below zero, there is no payment under this
subdivision.
(8) After making allocations to eligible intermediate districts under subsections (3), (4), and (7), if funds remain
unallocated from the allocations under subsections (2) and (7), the department must allocate remaining funds to
intermediate districts prop ortional to the amounts allocated to intermediate districts under subsections (3)
and (4).
(9) As used in subsection (7):
(a) “3-year average membership ” means the 3 -year average pupil membership for each of the 3 most recent
fiscal years.
(b) “3-year average special education millage revenue per pupil ” means the 3-year average taxable value per
mill levied behind each membership pupil for each of the 3 most recent fiscal years multiplied by the millage
levied in the most recent fiscal year.

Sec. 61a. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $41,733,800.00 for 2025-2026 to reimburse on an added cost basis districts, except for a district that
served as the fiscal agent for a vocational education consortium in the 1993 -94 school year and that has a
foundation allowance as calculated under section 20 greater than the target foundation allowance under that
section, and secondary area vocational -technical education centers for s econdary-level career and technical
education programs according to rules approved by the superintendent. Applications for participation in the
programs must be submitted in the form prescribed by the department. The department shall determine the
added cost for each career and technical education program area. The department shall prioritize the allocation
of added cost funds based on the capital and program expenditures needed to operate the career and technical
education programs provided; the number of pupils enrolled; the advancement of pupils through the instructional
program; the existence of an articulation agreement with at least 1 postsecondary institution that provides pupils
with opportunities to earn postsecondary credit during the pupil ’s participation in the career and technical
education program and transfers those credits to the postsecondary institution upon completion of the career and
technical education program; and the program rank in student placement, job openings, and wages, an d shall
ensure that the allocation does not exceed 75% of the added cost of any program. Notwithstanding any rule or
department determination to the contrary, when determining a district ’s allocation or the formula for making
allocations under this section, the department shall include the participation of pupils in grade 9 in all of those
determinations and in all portions of the formula. With the approval of the department, the board of a district
maintaining a secondary career and technical education program ma y offer the program for the period from the
close of the school year until September 1. The program shall use existing facilities and must be operated as
prescribed by rules promulgated by the superintendent.
(2) Except for a district that served as the fiscal agent for a vocational education consortium in the 1993 -94
school year, the department shall reimburse districts and intermediate districts for local career and technical
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education administration, shared time career and technical education administration, and career education
planning district career and technical education administration. The superintendent shall adopt guidelines for
the definition of what constitutes admi nistration and shall make reimbursement pursuant to those guidelines.
The department shall not distribute more than $800,000.00 of the allocation in subsection (1) under this
subsection.
(3) A career and technical education program funded under this section may provide an opportunity for
participants who are eligible to be funded under section 107 to enroll in the career and technical education
program funded under this section if the participation does not occur during regular school hours.

Sec. 61b. (1) From the state school aid fund money appropriated under section 11, there is allocated for 2025 -
2026 an amount not to exceed $8,368,000.00 for CTE early middle college and CTE dual enrollment programs
authorized under this section and for pla nning grants for the development or expansion of CTE early middle
college programs. The purpose of these programs is to increase the number of Michigan residents with high -
quality degrees or credentials, and to increase the number of students who are college and career ready upon high
school graduation.
(2) From the funds allocated under subsection (1), the department shall allocate an amount as determined
under this subsection to each intermediate district serving as a fiscal agent for state-approved CTE early middle
college and CTE dual enrollment progr ams in each of the career education planning districts identified by the
department. An intermediate district shall not use more than 5% of the funds allocated under this subsection for
administrative costs for serving as the fiscal agent.
(3) To be an eligible fiscal agent, an intermediate district must agree to do all of the following in a form and
manner determined by the department:
(a) Distribute funds to eligible CTE early middle college and CTE dual enrollment programs in a career
education planning district as described in this section.
(b) Collaborate with the career and educational advisory council in the workforce development board service
delivery area to develop 1 regional strategic plan under subsection (4) that aligns CTE programs and services into
an efficient and effective delive ry system for high school students. The department will align career education
planning districts, workforce development board service delivery areas, and intermediate districts for the purpose
of creating 1 regional strategic plan for each workforce development board service delivery area.
(c) Implement a regional process to rank career clusters in the workforce development board service delivery
area as described under subsection (4). Regional processes must be approved by the department before the ranking
of career clusters.
(d) Report CTE early middle college and CTE dual enrollment program and student data and information as
prescribed by the department and the center.
(e) The local education agency responsible for student reporting in the Michigan student data system (MSDS)
will report the total number of college credits the student earned, at the time of high school graduation, as
determined by the department and the center.
(f) The local education agency will report each award outcome in the Michigan student data system (MSDS)
that the CTE early middle college student attained. For purposes of this subsection, an on-track CTE early middle
college graduate is a graduate who obtained their high school diploma and at least 1 of the following:
(i) An associate degree.
(ii) 60 transferable college credits.
(iii) Professional certification.
(iv) A Michigan Early Middle College Association certificate.
(v) Participation in a registered apprenticeship.
(4) A regional strategic plan must be approved by the career and educational advisory council before
submission to the department. A regional strategic plan must include, but is not limited to, the following:
(a) An identification of regional employer need based on a ranking of all career clusters in the workforce
development board service delivery area ranked by 10 -year projections of annual job openings and median wage
for each standard occupational code in each career cluster as obt ained from the United States Bureau of Labor
Statistics. Standard occupational codes within high-ranking clusters also may be further ranked by median wage
and annual job openings. The career and educational advisory council located in the workforce development board
service delivery area shall review the rankings and modify them if necessary to accurately reflect employer
demand for talent in the workforce development board service delivery area. A career and educational advisory
council shall document tha t it has conducted this review and certify that it is accurate. These career cluster
rankings must be determined and updated once every 4 years.
(b) An identification of educational entities in the workforce development board service delivery area that will
provide eligible CTE early middle college and CTE dual enrollment programs including districts, intermediate
districts, postsecondary instituti ons, and noncredit occupational training programs leading to an industry -
recognized credential.
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(c) A strategy to inform parents and students of CTE early middle college and CTE dual enrollment programs
in the workforce development board service delivery area.
(d) Any other requirements as defined by the department.
(5) An eligible CTE program is a program that meets all of the following:
(a) Has been identified in the highest 5 career cluster rankings in any of the 16 workforce development board
service delivery area strategic plans jointly approved by the department of labor and economic opportunity and
the department.
(b) Has a coherent sequence of courses in a specific career cluster that will allow a student to earn a high school
diploma and achieve at least 1 of the following:
(i) For CTE early middle college, outcomes as defined in subsection (3)(f).
(ii) For CTE dual enrollment, 1 of the following:
(A) An associate degree.
(B) An industry -recognized technical certification approved by the department of labor and economic
opportunity.
(C) Up to 60 transferable college credits.
(D) Participation in a registered apprenticeship, pre-apprenticeship, or apprentice readiness program.
(c) Is aligned with the Michigan merit curriculum.
(d) Has an articulation or a college credit agreement with at least 1 postsecondary institution that provides
students with opportunities to receive postsecondary credits during the student ’s participation in the CTE early
middle college or CTE dual enrollment program and transfers those credits to the postsecondary institution upon
completion of the CTE early middle college or CTE dual enrollment program.
(e) Provides instruction that is supervised, directed, or coordinated by an appropriately certificated CTE
teacher or, for concurrent enrollment courses, a postsecondary faculty member.
(f) Provides for highly integrated student support services that include at least the following:
(i) Teachers as academic advisors.
(ii) Supervised course selection.
(iii) Monitoring of student progress and completion.
(iv) Career planning services provided by a local one -stop service center as described in the Michigan works
one-stop service center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a high school counselor or advisor.
(g) Has courses that are taught on a college campus, are college courses offered at the high school and taught
by college faculty, or are courses taught in combination with online instruction.
(6) The department shall distribute funds to eligible CTE early middle college and CTE dual enrollment
programs as follows:
(a) The department shall determine statewide average CTE costs per pupil for each CIP code program by
calculating statewide average costs for each CIP code program for the 3 most recent fiscal years.
(b) The distribution to each eligible CTE early middle college or CTE dual enrollment program is the product
of 50% of CTE costs per pupil times the pupil enrollment of each eligible CTE early middle college or CTE dual
enrollment program in the immediately preceding school year.
(7) To receive funds under this section, a CTE early middle college or CTE dual enrollment program shall
furnish to the intermediate district that is the fiscal agent identified in subsection (2), in a form and manner
determined by the department, all info rmation needed to administer this program and meet federal reporting
requirements; shall allow the department or the department ’s designee to review all records related to the
program for which it receives funds; and shall reimburse the state for all disal lowances found in the review, as
determined by the department.
(8) There is allocated for 2025-2026 from the funds under subsection (1) an amount not to exceed $500,000.00
from the state school aid fund allocation for grants to intermediate districts or consortia of intermediate districts
for the purpose of planning for new or exp anded early middle college programs. Applications for grants must be
submitted in a form and manner determined by the department. The amount of a grant under this subsection
must not exceed $50,000.00. To be eligible for a grant under this subsection, an intermediate district or consortia
of intermediate districts must provide matching funds equal to the grant received under this subsection.
Notwithstanding section 17b, the department shall make payments under this subsection in the manner
determined by the department.
(9) Funds distributed under this section may be used to fund program expenditures that would otherwise be
paid from foundation allowances. A program receiving funding under section 61a may receive funding under this
section for allowable costs that exceed the reimbursement the program received under section 61a. The combined
payments received by a program under section 61a and this section must not exceed the total allowable costs of
the program. A program provider shall not use more than 5% of the funds al located under this section to the
program for administrative costs.
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(10) If the allocation under subsection (1) is insufficient to fully fund payments as otherwise calculated under
this section, the department shall prorate payments under this section on an equal percentage basis, using for
that proration calculation payments made for CTE dual enrollment programs only.
(11) If pupils enrolled in a career cluster in an eligible CTE early middle college or CTE dual enrollment
program qualify to be reimbursed under this section, those pupils continue to qualify for reimbursement until
graduation, even if the career cluster is no longer identified as being in the highest 5 career cluster rankings.
(12) As used in this section:
(a) “Allowable costs ” means those costs directly attributable to the program as jointly determined by the
department of labor and economic opportunity and the department.
(b) “Career and educational advisory council ” means an advisory council to the local workforce development
boards located in a workforce development board service delivery area consisting of educational, employer, labor,
and parent representatives.
(c) “CIP” means classification of instructional programs.
(d) “CTE” means career and technical education programs.
(e) “CTE dual enrollment program ” means a 4-year high school program of postsecondary courses offered by
eligible postsecondary educational institutions that leads to an industry-recognized certification or degree.
(f) “Early middle college program” means a 5-year high school program.
(g) “Eligible postsecondary educational institution” means that term as defined in section 3 of the career and
technical preparation act, 2000 PA 258, MCL 388.1903.

Sec. 61d. (1) From the state school aid fund money in section 11, there is allocated for 2025 -2026 only an
amount not to exceed $13,400,000.00 for additional payments to districts for career and technical education
programs for the purpose of increasing the number of Michigan residents with high-quality degrees or credentials,
and to increase the number of pupils who are college- and career-ready upon high school graduation.
(2) The department shall calculate payments to districts under this section in the following manner:
(a) A payment of $88.00 multiplied by the number of pupils in grades 9 to 12 who are counted in membership
in the district and are enrolled in at least 1 career and technical education program.
(b) An additional payment of $88.00 multiplied by the number of pupils in grades 9 to 12 who are counted in
membership in the district and are enrolled in at least 1 career and technical education program that provides
instruction in critical skills and high-demand career fields.
(3) If the allocation under subsection (1) is insufficient to fully fund payments under subsection (2), the
department shall prorate payments under this section on an equal per-pupil basis.
(4) As used in this section:
(a) “Career and technical education program” means a state-approved career and technical education program,
as determined by the department.
(b) “Career and technical education program that provides instruction in critical skills and high-demand career
field” means a career and technical education program classified under any of the following 2 -digit classification
of instructional programs (CIP) codes:
(i) 01, which refers to “agriculture, agriculture operations, and related sciences”.
(ii) 03, which refers to “natural resources and conservation”.
(iii) 10 through 11, which refers to “communications technologies/technicians and support services ” and
“computer and information sciences and support services”.
(iv) 14 through 15, which refers to “engineering” and “engineering technologies and engineering-related fields”.
(v) 26, which refers to “biological and biomedical sciences”.
(vi) 46 through 48, which refers to “construction trades”, “mechanic and repair technologies/technicians”, and
“precision production”.
(vii) 51, which refers to “health professions and related programs”.

Sec. 61j. (1) From the state school aid fund money appropriated in section 11, $5,000,000.00 is allocated for
2024-2025 only to Huron School District to support the Downriver Career and Technical Education Consortium.
(2) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(3) The funds allocated in this section are a work project appropriation, and any unexpended funds for 2024 -
2025 are carried forward into 2025-2026. The purpose of the work project is to continue support for the Downriver
Career and Technical Education Consortium. The estimated completion date of the work project is September 30,
2026.
(4) Notwithstanding section 18a, funds allocated under this section may be available for expenditure until
September 30, 2027. A recipient of funding under this section must return any unexpended funds to the
department in the manner prescribed by the department by not later than October 30, 2028.
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Sec. 61v. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
only an amount not to exceed $70,000,000.00 for the purposes of this section. Funds allocated under this section
are intended to expand student access to, and enrollment in, career and technical education programs.
(2) From the state school aid fund money allocated in subsection (1), $68,500,000.00 must be used for a grant
program to districts. To be eligible to receive funding under this subsection, a district must be in a CTE desert or
must demonstrate to the satis faction of the department that the district has a career and technical education
opportunity gap.
(3) Eligible districts shall apply on a competitive basis for funding under subsection (2) in a form and manner
determined by the department. All of the following apply to applications for funding provided under subsection (2):
(a) Applicants must provide a comprehensive local needs assessment, a statement of commitment, including a
district capacity and a sustainability plan, a strategy to address the needs of students, and an appropriate and
aligned budget.
(b) Applicants must demonstrate the ability to continue programs started with funding under this subsection
in an ongoing manner after funding received under this section is no longer available.
(c) Applications must be scored on a tiered rating system with criteria that considers at least all of the
following:
(i) Local match committed to by the applicant, such as philanthropic, business, and industry contributions,
and vocational education millage revenue.
(ii) The magnitude to which the applicant demonstrates that the applicant has an opportunity gap or is in a
designated CTE desert.
(iii) Labor market demand for proposed programs.
(iv) Feasibility of planned implementation and evaluation plans.
(4) All of the following apply to awards received by eligible districts under subsection (2):
(a) Awards received under subsection (2) must be used to create and sustain career and technical education
programs aligned with high -skill, high-wage, and high -demand occupations across career clusters aligned with
local and regional labor market needs. C areer and technical education programs described in this subdivision
must be aligned with state career and technical education standards, must integrate stackable credentials, must
create a program of study guided by a program advisory committee, and must maintain all requirements of a
state-approved program. Career and technical education programs described in this subdivision may include the
use of multimodal learning and immersive technologies, including virtual reality simulations, that expand access
to core state-standards-aligned concepts and skills for grades 6 to 12 in math and science, including students with
lower performing algebra 1 scores, or the use of programs that expand access to high -skill, high-wage and high-
demand career exploration and training, particularly in CTE deserts with limited physical infrastructure.
(b) If funds received under subsection (2) are used for a middle school career and technical education program,
as determined by the department, the recipient district must demonstrate how the program will do all of the
following:
(i) Align academic content with practical career skills.
(ii) Integrate the flexibilities of the Michigan merit curriculum in a program of study from middle school
through postsecondary education.
(iii) Allow students to earn high school academic and career and technical education credits.
(iv) Enable a more seamless transition into high school career and technical education pathways.
(v) Use the Educational Development Plan and the Michigan Career Development Model to provide career and
college readiness activities for middle school students.
(c) Awards under subsection (2) must be received over a 3-year period.
(d) Districts may use the first year of funding received under subsection (2) for program startup costs, including
developing and designing programs of study, creating and furnishing labs for technical skill training, hiring
qualified staff, or other eligible purposes as determined by the department.
(e) Funding amounts provided in the second and third year under subsection (2) must scale down from levels
received in the first year. Districts must increase local financial commitments to sustain the programs described
in this subsection.
(5) From the funds allocated in subsection (1), there is allocated for 2025 -2026 only an amount not to exceed
$1,500,000.00 to implement a statewide campaign to educate the public on the importance and economic viability
of jobs created through career and technical education pathways. Statewide campaigns described in this
subsection are intended to ensure full enrollment in newly created programs by engaging as many students as
possible. Both of the following apply to funding allocated under this subsection:
(a) Funding allocated under this subsection must be awarded by the department, in a form and manner
determined by the department, to an intermediate district or consortia of intermediate districts.
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(b) The recipient receiving funding under this subsection must use those funds for a statewide public
awareness campaign to promote the value of career and technical education to students, educators, parents,
business, and industry by showcasing student participants, how career and technical education aligns with college
and career readiness, and how it meets local economic needs. The campaign must foster student, community, and
parental understanding of the benefits of career and technical education and encourage broader participation.
(6) The funds allocated in this section are a work project appropriation, and any unexpended funds for 2025 -
2026 are carried forward into 2026 -2027. The purpose of the work project is to create new career and technical
education programs and expand access to programming for more students. The estimated completion date of the
work project is September 30, 2030.
(7) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 62. (1) For the purposes of this section:
(a) “Membership” means for a particular fiscal year the total membership of the intermediate district and the
districts constituent to the intermediate district or the total membership of the area vocational-technical program,
except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681
to 380.690, the membership of that district are not included in the membership of the intermediate district.
However, the membership of a district that has elected not to come under sections 681 to 690 of the revised school
code, MCL 380.681 to 380.690, is included in the membership of the intermediate district if the district meets
both of the following:
(i) The district operates the area vocational -technical education program pursuant to a contract with the
intermediate district.
(ii) The district contributes an annual amount to the operation of the program that is commensurate with the
revenue that would have been raised for operation of the program if millage were levied in the district for the
program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.
(b) “Millage levied” means the millage levied for area vocational-technical education under sections 681 to 690
of the revised school code, MCL 380.681 to 380.690, including a levy for debt service obligations incurred as the
result of borrowing for capital outlay projects and in meeting capital projects fund requirements of area vocational-
technical education.
(c) “Taxable value” means the total taxable value of the districts constituent to an intermediate district or area
vocational-technical education program, except that if a district has elected not to come under sections 681 to 690
of the revised school code, MCL 380.681 to 380.690, the taxable value of that district is not included in the taxable
value of the intermediate district. However, the taxable value of a district that has elected not to come under
sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, is included in the taxable value of the
intermediate district if the district meets both of the following:
(i) The district operates the area vocational -technical education program pursuant to a contract with the
intermediate district.
(ii) The district contributes an annual amount to the operation of the program that is commensurate with the
revenue that would have been raised for operation of the program if millage were levied in the district for the
program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.
(2) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed
$9,190,000.00 each fiscal year for 2024 -2025 and 2025 -2026 to reimburse intermediate districts and area
vocational-technical education programs established under section 690(3) of the revised school code, MCL 380.690,
levying millages for area vocational -technical education under sectio ns 681 to 690 of the revised school code,
MCL 380.681 to 380.690. The purpose, use, and expenditure of the reimbursement are limited as if the funds were
generated by those millages.
(3) Reimbursement for those millages levied in 2023-2024 is made in 2024-2025 at an amount per 2023-2024
membership pupil computed by subtracting from $269,800.00 the 2023-2024 taxable value behind each
membership pupil and multiplying the resulting difference by the 2023-2024 millage levied, and then subtracting
from that amount the 2023-2024 local community stabilization share revenue for area vocational technical
education and 2023-2024 tax increment revenues captured by a brownfield redevelopment author ity created
under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each
membership pupil for reimbursement of personal property exemption loss under the local community stabilization
authority act, 2014 PA 86, MCL 1 23.1341 to 123.1362, and reimbursements paid under section 26d for tax
increment revenues captured by a brownfield redevelopment authority under the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the calc ulation described in the
previous sentence only, for an intermediate district receiving funds under this section and section 56,
reimbursements paid under section 26d must be multiplied by the ratio of vocational-technical education millage
levied, as defi ned in this section, and the sum of vocational -technical education millage levied and special
education.
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(4) Reimbursement for those millages levied in 2024 -2025 is made in 2025-2026 at an amount per 2024-2025
membership pupil computed by subtracting from $287,400.00 the 2024 -2025 taxable value behind each
membership pupil and multiplying the resulting difference by the 2024-2025 millage levied, and then subtracting
from t hat amount the 2024 -2025 local community stabilization share revenue for area vocational technical
education and 2024 -2025 tax increment revenues captured by a brownfield redevelopment authority created
under the brownfield redevelopment financing act, 199 6 PA 381, MCL 125.2651 to 125.2670, behind each
membership pupil for reimbursement of personal property exemption loss under the local community stabilization
authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid under section 26d fo r tax
increment revenues captured by a brownfield redevelopment authority under the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the calculation described in the
previous sentence only, for an intermedi ate district receiving funds under this section and section 56,
reimbursements paid under section 26d must be multiplied by the ratio of vocational-technical education millage
levied, as defined in this section, and the sum of vocational -technical educatio n millage levied and special
education millage levied, as defined in section 56.
(5) The department shall ensure that the amount paid to a single intermediate district under this section does
not exceed 38.4% of the total amount allocated under subsection (2).
(6) The department shall ensure that the amount paid to a single intermediate district under this section is
not less than 75% of the amount allocated to the intermediate district under this section for the immediately
preceding fiscal year.

Sec. 65. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is
allocated an amount not to exceed $900,000.00 for 2025-2026 only for a pre-college engineering K to 12 educational
program that is focused on the d evelopment of a diverse future Michigan workforce, that serves multiple
communities within southeast Michigan, that enrolls pupils from multiple districts, and that received funds
appropriated for this purpose in the appropriations act that provided the Michigan strategic fund budget for 2014-
2015. It is the intent of the legislature that the appropriation under this section will be funded with state school
aid pupil support reserve fund money through 2027-2028.
(2) To be eligible for funding under this section, a program must have the ability to expose pupils to, and
motivate and prepare pupils for, science, technology, engineering, and mathematics careers and postsecondary
education with special attention given to groups of pupils who are at -risk and underrepresented in technical
professions and careers.

Sec. 67. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$3,000,000.00 for 2025-2026 for college access programs. The programs funded under this section are intended to
inform students of college and career options, to provide resources intended to increase the number of pupils who
are adequately prepared with the information needed to make informed decisions on college and career, support
adult learners, support college completion, and support workforc e and employer engagement. The funds
appropriated under this section are intended to be used to increase the number of Michigan residents with high-
quality degrees or credentials. Funds appropriated under this section must not be used to supplant funding f or
counselors already funded by districts.
(2) The department of lifelong education, advancement, and potential shall administer funds allocated under
this section in collaboration with the Michigan college access network. These funds may be used for any of the
following purposes:
(a) Michigan college access network operations, programming, and services to local college access networks.
(b) Local college access networks, which are community -based college access/success partnerships committed
to increasing the college participation and completion rates within geographically defined communities through
a coordinated strategy.
(c) The Michigan college advising program, a program intended to place trained, recently graduated college
advisors in high schools that serve significant numbers of low -income and first-generation college-going pupils.
State funds used for this purpose may not exceed 33% of the total funds available under this subsection.
(d) Subgrants of up to $5,000.00 to districts with comprehensive high schools that establish a college access
team and implement specific strategies to create a college -going culture in a high school in a form and manner
approved by the Michigan college ac cess network and the department of lifelong education, advancement, and
potential.
(e) The Michigan college access portal, an online one-stop portal to help pupils and families plan and apply for
college.
(f) Public awareness and outreach campaigns to encourage low -income and first -generation college -going
pupils to take necessary steps toward college and to assist pupils and families in completing a timely and accurate
free application for federal student aid.
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(g) Subgrants to postsecondary institutions to recruit, hire, and train college student mentors and college
advisors to assist high school pupils in navigating the postsecondary planning and enrollment process.
(3) For the purposes of this section, “college” means any postsecondary educational opportunity that leads to
a career, including, but not limited to, a postsecondary degree, industry -recognized technical certification, or
registered apprenticeship.

Sec. 67f. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is
allocated for 2025-2026 only an amount not to exceed $10,000,000.00 for districts to improve FAFSA completion
rates. It is the intent of the legislature that the appropriation under this section will be funded with state school
aid pupil support reserve fund money through 2027-2028.
(2) To be eligible to receive funding under this section, each district must apply in a form and manner
determined by the department of lifelong education, advancement, and potential. The department of lifelong
education, advancement, and potential shall make the application available by not later than November 1, 2025.
A district shall apply for funding to the department of lifelong education, advancement, and potential by not later
than December 1, 2025. In the application, the department of lifelong education, advancement, and potential shall
only require a district to certify that it will do both of the following:
(a) Except as otherwise provided in subsection (3), require all students to complete the FAFSA to graduate
from high school.
(b) Use funds received under this section for participation in and implementation of activities that are known
to drive FAFSA completion, as determined by the department of lifelong education, advancement, and potential,
in collaboration with the Michigan College Access Network.
(3) A district shall exempt a student from the requirement to complete the FAFSA if any of the following are
met:
(a) The student ’s parent or legal guardian, or the student if the student is 18 years of age or older, is an
emancipated minor, or is an unaccompanied youth, has submitted a parental waiver to the district exempting the
student from completing the FAFSA. The parental waiver described in this subdivision must be obtained through
a standard form developed by the department of lifelong education, advancement, and potential.
(b) The student is unable to complete the FAFSA because of privacy concerns.
(c) All of the following are met:
(i) After a good -faith effort, the student ’s parent or legal guardian refuses to sign the parental waiver, is
unresponsive, or cannot sign the parental waiver.
(ii) The student is unable to complete the FAFSA as an independent student.
(iii) The student agrees to opt out of completing the FAFSA.
(iv) Other than the requirements in subsection (2), the student is on track to graduate.
(v) A school administrator of the student ’s high school demonstrates to the board that good -faith efforts have
been made to assist the student or the student ’s parent or legal guardian in completing the FAFSA or obtaining
a parental waiver.
(vi) The board ensures compliance with 42 USC 11432(g)(6)(A).
(4) By not later than January 31, 2026, the department of lifelong education, advancement, and potential shall
pay each eligible district an equal amount per pupil multiplied by the number of pupils enrolled and attending
grade 12 in the district.
(5) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make
payments under this section on a schedule determined by the department of lifelong education, advancement, and
potential.
(6) As used in the section, “FAFSA” means the free application for federal student aid form.

Sec. 74. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not
to exceed $3,949,900.00 for 2025-2026 for the purposes of this section.
(2) From the allocation in subsection (1), there is allocated for 2025 -2026 the amount necessary for payments
to state supported colleges or universities and intermediate districts providing school bus driver safety instruction
under section 51 of the pupi l transportation act, 1990 PA 187, MCL 257.1851. The department shall make
payments in an amount determined by the department not to exceed the actual cost of instruction and driver
compensation for each public or nonpublic school bus driver attending a course of instruction. For the purpose of
computing compensation, the hourly rate allowed each school bus driver must not exceed the hourly rate received
for driving a school bus. The department shall make reimbursement compensating the driver during the cou rse
of instruction to the college or university or intermediate district providing the course of instruction.
(3) From the allocation in subsection (1), there is allocated for 2025 -2026 the amount necessary to pay the
reasonable costs of nonspecial education auxiliary services transportation provided under section 1323 of the
revised school code, MCL 380.1323. Districts funded under this subsection do not receive funding under any other
section of this article for nonspecial education auxiliary services transportation.
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(4) From the funds allocated in subsection (1), there is allocated an amount not to exceed $1,924,900.00 for
2025-2026 for the inspection of school buses and pupil transportation vehicles by the department of state police
as required under section 715a of the Michigan vehicle code, 1949 PA 300, MCL 257.715a, and section 39 of the
pupil transportation act, 1990 PA 187, MCL 257.1839. The department of state police shall prepare a statement
of costs and submit it to the department and to an intermediate district serving as fiduciary in a time and manner
determined jointly by the department and the department of state police. Upon review and approval of the
statement of cost, the department shall forward to the designated intermediate district serving as fiducia ry the
amount detailed on the statement within 45 days after receipt of the statement. The designated intermediate
district fiduciary shall make payment in the amount specified on the statement to the department of state police
within 45 days after receipt of the statement. The total reimbursement of costs under this subsection must not
exceed the amount allocated under this subsection. Notwithstanding section 17b, the department shall make
payments to eligible entities under this subsection on a schedule prescribed by the department.

Sec. 81. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025 -2026
to intermediate districts the sum necessary, but not to exceed $83,157,700.00, to provide state aid to intermediate
districts under this section.
(2) The amount allocated under this section to each intermediate school district for the current fiscal year is
equal to the allocation for the immediately preceding fiscal year plus an equal percentage increase for all
intermediate school districts. An in termediate district shall use funding provided under this section to comply
with requirements of this article and the revised school code that are applicable to intermediate districts, and for
which funding is not provided elsewhere in this article, and to provide technical assistance to districts as
authorized by the intermediate school board.
(3) Intermediate districts receiving funds under this section shall collaborate with the department to develop
expanded professional development opportunities for teachers to update and expand their knowledge and skills
needed to support the Michigan merit curriculum.
(4) From the allocation in subsection (1), there is allocated to an intermediate district, formed by the
consolidation or annexation of 2 or more intermediate districts or the attachment of a total intermediate district
to another intermediate district or the annexation of all of the constituent K to 12 districts of a previously existing
intermediate district which has disorganized, an additional allotment of $3,500.00 each fiscal year for each
intermediate district included in the new intermediate district for 3 years following consolidation, annexation, or
attachment.
(5) To receive funding under this section, an intermediate district shall do all of the following:
(a) Demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person
who is trained in pupil accounting and auditing procedures, rules, and regulations.
(b) Demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person
who is trained in rules, regulations, and district reporting procedures for the individual -level student data that
serves as the basis for the calculation of the district and high school graduation and dropout rates.
(c) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 380.1278b.
(d) Furnish data and other information required by state and federal law to the center and the department in
the form and manner specified by the center or the department, as applicable.
(e) Comply with section 1230g of the revised school code, MCL 380.1230g.
(f) Ensure that all districts located within the intermediate district ’s geographic boundaries have equitable
access to the intermediate district ’s coordination activities and services, intermediate district -wide or regional
meetings, regularly scheduled superintendent meetings, programming, events, email distribution lists, listservs,
or other coordination or collaboration activities organized by o r hosted in the intermediate district. In ensuring
that all districts located within the geographic boundaries of the intermediate district have equitable access to
the services, meetings, programming, events, email distribution lists, listservs, or activities, the intermediate
district shall ensure that districts that are public school academies and that are loca ted within the intermediate
district’s geographic boundaries are not excluded from the services, meetings, programming, events, email
distribution lists, listservs, or activities organized by or hosted in the intermediate district if districts that are not
public school academies and that are located within the geographic boundaries of the intermediate district are
not excluded.

Sec. 94. (1) From the general fund money appropriated in section 11, there is allocated to the department for
2025-2026 an amount not to exceed $2,600,000.00 for efforts to increase the number of pupils who participate and
succeed in advanced placement and international baccalaureate programs, and to support the college -level
examination program (CLEP). It is the intent of the legislature that, for 2026-2027, the allocation from the general
fund money appropriated in section 11 for purposes described in this section will be $1,200,000.00.
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(2) From the funds allocated under this section, the department shall award funds to cover all or part of the
costs of advanced placement test fees or international baccalaureate test fees and international baccalaureate
registration fees for low -income pupils who take an advanced placement or an international baccalaureate test
and CLEP fees for low-income pupils who take a CLEP test.
(3) The department shall only award funds under this section if the department determines that all of the
following criteria are met:
(a) Each pupil for whom payment is made meets eligibility requirements of the federal advanced placement
test fee program under the no child left behind act of 2001, Public Law 107-110, or the every student succeeds act,
Public Law 114-95, as applicable.
(b) The tests are administered by the college board, the international baccalaureate organization, or another
test provider approved by the department.
(c) The pupil for whom payment is made pays at least $5.00 toward the cost of each test for which payment is
made.
(4) If funds remain after the awards granted in subsection (2), the department shall award funds to reimburse
a portion of the costs associated with the provision of advanced placement (AP), international baccalaureate (IB),
or college-level examination program (CLEP) exams for students whose family income exceeds low-income status
as determined by the department.
(5) The department shall establish procedures for awarding funds under this section.
(6) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 94a. (1) There is created within the state budget office in the department of technology, management, and
budget the center for educational performance and information. The center shall do all of the following:
(a) Coordinate the collection of all data required by state and federal law from districts, intermediate districts,
and postsecondary institutions.
(b) Create, maintain, and enhance this state ’s P-20 longitudinal data system and ensure that it meets the
requirements of subsection (4).
(c) Collect data in the most efficient manner possible to reduce the administrative burden on reporting entities,
including, but not limited to, electronic transcript services.
(d) Create, maintain, and enhance this state ’s web-based educational portal to provide information to school
leaders, teachers, researchers, and the public in compliance with all federal and state privacy laws. Data must
include, but are not limited to, all of the following:
(i) Data sets that link teachers to student information, allowing districts to assess individual teacher impact
on student performance and consider student growth factors in teacher and principal evaluation systems.
(ii) Data access or, if practical, data sets, provided for regional data hubs that, in combination with local data,
can improve teaching and learning in the classroom.
(iii) Research -ready data sets for researchers to perform research that advances this state ’s educational
performance.
(e) Provide data in a useful manner to allow state and local policymakers to make informed policy decisions.
(f) Provide public reports to the residents of this state to allow them to assess allocation of resources and the
return on their investment in the education system of this state.
(g) Other functions as assigned by the state budget director.
(2) Each state department, officer, or agency that collects information from districts, intermediate districts, or
postsecondary institutions as required under state or federal law shall make arrangements with the center to
ensure that the state department, officer, or agency is in compliance with subsection (1). This subsection does not
apply to information collected by the department of treasury under the uniform budgeting and accounting act,
1968 PA 2, MCL 141.421 to 141.440a; the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821;
the school bond qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to 388.1939; or section 1351a of
the revised school code, MCL 380.1351a.
(3) The center may enter into any interlocal agreements necessary to fulfill its functions.
(4) The center shall ensure that the P -20 longitudinal data system required under subsection (1)(b) meets all
of the following:
(a) Includes data at the individual student level from preschool through postsecondary education and into the
workforce.
(b) Supports interoperability by using standard data structures, data formats, and data definitions to ensure
linkage and connectivity in a manner that facilitates the exchange of data among agencies and institutions within
the state and between states.
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(c) Enables the matching of individual teacher and student records so that an individual student may be
matched with those teachers providing instruction to that student.
(d) Enables the matching of individual teachers with information about their certification and the institutions
that prepared and recommended those teachers for state certification.
(e) Enables data to be easily generated for continuous improvement and decision -making, including timely
reporting to parents, teachers, and school leaders on student achievement.
(f) Ensures the reasonable quality, validity, and reliability of data contained in the system.
(g) Provides this state with the ability to meet federal and state reporting requirements.
(h) For data elements related to preschool through grade 12 and postsecondary, meets all of the following:
(i) Contains a unique statewide student identifier that does not permit a student to be individually identified
by users of the system, except as allowed by federal and state law.
(ii) Contains student -level enrollment, demographic, and program participation information, including data
associated with students who have been identified as having an affiliation to 1 or more federally recognized Indian
tribes and student participation in federal programs funded under 20 USC 7401 to 7546 and participation in
federal programs funded under the Johnson -O’Malley Supplemental Indian Education Program Modernization
Act, Public Law 115-404. Any reports or data access related specifically to tribal affiliation must be done through
ongoing consultation with the federally recognized tribes in the state with the expectation that the center, the
department, and the tribes will work iteratively toward meaningful reports, access, and use of these recor ds to
improve shared education interests and outcomes.
(iii) Contains student-level information about the points at which students exit, transfer in, transfer out, drop
out, or complete education programs.
(iv) Has the capacity to communicate with higher education data systems.
(i) For data elements related to preschool through grade 12 only, meets all of the following:
(i) Contains yearly test records of individual students for assessments approved by DED -OESE for
accountability purposes under section 1111(b) of the elementary and secondary education act of 1965,
20 USC 6311, including information on individual students not tested, by grade and subject.
(ii) Contains student -level transcript information, including information on courses completed and grades
earned.
(iii) Contains student-level college readiness test scores.
(j) For data elements related to postsecondary education only:
(i) Contains data that provide information regarding the extent to which individual students transition
successfully from secondary school to postsecondary education, including, but not limited to, all of the following:
(A) Enrollment in remedial coursework.
(B) Completion of 1 year’s worth of college credit applicable to a degree within 2 years of enrollment.
(ii) Contains data that provide other information determined necessary to address alignment and adequate
preparation for success in postsecondary education.
(5) From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$19,364,700.00 for 2025-2026 to the department of technology, management, and budget to support the operations
of the center. In addition, from the feder al funds appropriated in section 11, there is allocated for 2025 -2026 the
amount necessary, estimated at $2,193,500.00, to support the operations of the center and to establish a
P-20 longitudinal data system necessary for state and federal reporting purposes. The center shall cooperate with
the department to ensure that this state is in compliance with federal law and is maximizing opportunities for
increased federal funding to improve education in this state.
(6) From the funds allocated in subsection (5), the center may use an amount determined by the center for
competitive grants for 2025-2026 to support collaborative efforts on the P-20 longitudinal data system. All of the
following apply to grants awarded under this subsection:
(a) The center shall award competitive grants to eligible intermediate districts or a consortium of intermediate
districts based on criteria established by the center.
(b) Activities funded under the grant must support the P-20 longitudinal data system portal and may include
portal hosting, hardware and software acquisition, maintenance, enhancements, user support and related
materials, and professional learning tools an d activities aimed at improving the utility of the P -20 longitudinal
data system.
(c) An applicant that received a grant under this subsection for the immediately preceding fiscal year has
priority for funding under this section. However, after 3 fiscal years of continuous funding, an applicant is required
to compete openly with new applicants.
(7) Funds allocated under this section that are not expended in the fiscal year in which they were allocated
may be carried forward to a subsequent fiscal year and are appropriated for the purposes for which the funds
were originally allocated.
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(8) The center may bill departments as necessary to fulfill reporting requirements of state and federal law.
The center may also enter into agreements to supply custom data, analysis, and reporting to other principal
executive departments, state agencies, local units of government, and other individuals and organizations. The
center may receive and expend funds in addition to those authorized in subsection (5) to cover the costs associated
with salaries, benefits, supplies, materials, and equipment necessary to provide such data, analysis, and reporting
services.
(9) As used in this section, “DED-OESE” means the United States Department of Education Office of
Elementary and Secondary Education.

Sec. 94e. (1) From the state school aid fund money appropriated under section 11, there is allocated for 2025 -
2026 only an amount not to exceed $1,000,000.00 for support of the Michigan Education Research Institute.
(2) Funding allocated under this section must be distributed to the University of Michigan ’s Michigan
Education Data Center and Michigan State University ’s Education Policy Innovation Center for the purpose of
working collaboratively with the department, the department of lifelong education, advancement, and potential,
and the center to build and maintain a research ready dataset, and to conduct research of critical importance to
the state’s education goals.
(3) The Michigan Education Research Institute shall use funds received under this section for the purpose of
expanding on research that includes, but is not limited to, all the following:
(a) Educator shortage.
(b) Early literacy initiative outcomes.
(c) Early childhood development programming outcomes.
(4) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 97g. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2023-2024
only, $9,000,000.00 to an intermediate district with K to 12 pupil membership between 37,500 and 42,500, as
reported in the 2021-2022 MI School Data Student Enrollment Counts Report school year final student count, to
establish and operate a statewide Security Operations Center (SOC) in partnership with a statewide educational
organization. The SOC will provide a Managed Detection and Respo nse (MDR) solution, including SOC staff, to
monitor and assist in responding to threats and attacks on critical technology infrastructure for districts and
intermediate districts.
(2) The intermediate district receiving funds under this section shall contract with a nonprofit educational
organization that maintains a statewide educational technology collaborative to establish the statewide SOC.
This statewide SOC will operate under the guidance of an advisory board, comprising educational technology
leaders, with regional statewide representation. Other K to 12 stakeholders may be invited to participate in the
advisory.
(3) The nonprofit educational organization that the intermediate district contracted with in subsection (2) shall
use the funds to do all of the following:
(a) Establish a statewide advisory.
(b) Establish a statewide SOC security team.
(c) Establish statewide MDR service.
(d) Train district technology staff in the deployment and use of MDR software and services.
(e) Purchase and distribute MDR licensing to districts and intermediate districts for installation on critical
technology infrastructure.
(f) Train, monitor, and track district utilization of a toolkit to be identified by the SOC such as MISecure Quick
Self-Assessment.
(g) Not later than January 1, 2025 and each subsequent fiscal year, prepare a summary report that includes
measurable outcomes including participation, detection, prevention, and response to cybersecurity incidents in
order to evaluate the effectiveness of the project. The report must be submitted to the house and senate
appropriations subcommittees on school aid and to the house and senate fiscal agencies.
(4) After the nonprofit educational organization that the intermediate district contracted with in subsection (2)
uses funds as required under subsection (3), the nonprofit educational organization may use any remaining funds
to do any of the following:
(a) Supply additional cybersecurity services as technologies evolve and budget allows.
(b) Partner with K to 12 statewide connectivity partners to install and monitor intrusion detection systems.
(5) Districts receiving software and service under this project shall do both of the following:
(a) Complete the assessment identified in subsection (3)(f) annually.
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(b) Install and maintain statewide SOC MDR software on critical infrastructure as described in this section,
provide access to the software to the statewide SOC, and coordinate responses with the statewide SOC and the
district’s intermediate district.
(6) For districts that have MDR solutions in place as of October 1, 2023, a licensing cost allocation equal to the
cost of the statewide SOC provided license may be provided until the end of the local contract or the end of the
funding period, whichever co mes first. Funds allocated under this subsection must be used to offset local MDR
costs, cybersecurity assessment, or further cybersecurity investment.
(7) The funds allocated under this section for 2023-2024 are a work project appropriation, and any unexpended
funds for 2023-2024 are carried forward and may be expended in subsequent years until the end of the 2027-2028
state fiscal year. The purpose of t he work project is to increase stable and reliable cybersecurity in districts and
intermediate districts. The estimated completion date of the work project is September 30, 2028.
(8) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(9) Notwithstanding section 18a, funds allocated under this section may be available for expenditure until
September 30, 2028. A recipient of funding under this section must return any unexpended funds to the
department in the manner prescribed by the department by not later than October 30, 2028.

Sec. 97k. (1) From the state school aid fund money appropriated in section 11, there is allocated $250,000.00
for 2024 -2025 only to Washtenaw Intermediate School District to utilize on the Student Advocacy Center of
Michigan in Ypsilanti to support its statewide helpline for families in educational crisis.
(2) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
(3) The funds allocated in this section are a work project appropriation, and any unexpended funds for 2024 -
2025 are carried forward into 2025 -2026. The purpose of the work project is to continue support for the Student
Advocacy Center of Michigan to suppo rt its statewide helpline for families in educational crisis. The estimated
completion date of the work project is September 30, 2026.

Sec. 97n. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
$10,000,000.00 for grants to districts to support the efforts of community violence intervention plans to reduce or
prevent youth violence.
(2) Districts must apply on a competitive basis for funding under this section in a form and manner determined
by the department. The department shall coordinate with the office of community violence intervention in the
department of health and human services to evaluate applications submitted under this section. Awards must be
granted based on competitive criteria determined by the department and the department of health and human
services, but must prioritize grants for local district plans that include c omprehensive strategies with
demonstrated external partnerships to support successful implementation.
(3) Districts may use funding received under this section to contract with nonprofits, community-based
organizations, subject matter experts, or other governmental entities to implement a plan to reduce or prevent
youth violence. A plan to reduce or prevent youth violence implemented under this subsection must use evidence-
based practices, include mentorship and community engagement strategies, and may include, but is not limited
to, increased academic, counseling, health, and wrap-around services to youth.
(4) The funds allocated in this section are a work project appropriation, and any unexpended funds for 2025 -
2026 are carried forward into 2026 -2027. The purpose of the work project is to support the work of community
violence intervention programs in districts and intermediate districts. The estimated completion date of the work
project is September 30, 2030.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 98. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$9,800,000.00 for 2025-2026 for the purposes described in this section. The Michigan Virtual University shall
provide a report to the legislature not later than November 1 of each fiscal year for which funding is allocated
under this section that includes its mission, i ts plans, and proposed benchmarks it must meet, including a plan
to achieve the organizational priorities identified in this section, to receive full funding for the next fiscal year for
which funding is allocated under this section. By not later than March 1 of each fiscal year for which funding is
allocated under this section, the Michigan Virtual University shall provide an update to the house and senate
appropriations subcommittees on school aid to show the progress being made to meet the benchmarks identified.
(2) The Michigan Virtual University shall operate the Michigan Virtual Learning Research Institute. The
Michigan Virtual Learning Research Institute shall do all of the following:
(a) Support and accelerate innovation in education through the following activities:
(i) Test, evaluate, and recommend as appropriate new technology-based instructional tools and resources.
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(ii) Research, design, and recommend virtual education delivery models for use by pupils and teachers that
include age-appropriate multimedia instructional content.
(iii) Research, develop, and recommend annually to the department criteria by which cyber schools and virtual
course providers should be monitored and evaluated to ensure a quality education for their pupils.
(iv) Based on pupil completion and performance data reported to the department or the center from cyber
schools and other virtual course providers operating in this state, analyze the effectiveness of virtual learning
delivery models in preparing pupils to be college- and career-ready and publish a report that highlights enrollment
totals, completion rates, and the overall impact on pupils. The Michigan Virtual Learning Research Institute shall
submit the report to the house and senate appropriations subcommittees on school aid, the state budget director,
the house and senate fiscal agencies, the department, districts, and intermediate districts by not later than
March 31 of each fiscal year for which funding is allocated under this section.
(v) Provide an extensive professional development program to at least 30,000 educational personnel, including
teachers, school administrators, and school board members, that focuses on the effective integration of virtual
learning into curricula and instruction. The Michigan Virtual Learning Research Institute is encouraged to work
with the MiSTEM council described in section 99s to coordinate professional development of teachers in applicable
fields. In addition, the Michigan Virtual Learning Research Inst itute and external stakeholders are encouraged
to coordinate with the department for professional development in this state, including professional development
for employees in child care facilities, early childhood facilities, and after -school programs. B y not later than
December 1 of each fiscal year for which funding is allocated under this section, the Michigan Virtual Learning
Research Institute shall submit a report to the house and senate appropriations subcommittees on school aid, the
state budget director, the house and senate fiscal agencies, and the department on the number of teachers, school
administrators, and school board members who have received professional development services from the
Michigan Virtual University. The report must also include both of the following:
(A) The identification of barriers and other opportunities to encourage the adoption of virtual learning in the
public education system.
(B) A link to, and explanation of, the Michigan Virtual University ’s online course standards for professional
development programming. The standards described in this sub -subparagraph must inform learners how to file
a complaint about course content and detail the steps that will be taken for the review and resolution of
complaints.
(vi) Identify and share best practices for planning, implementing, and evaluating virtual and blended
education delivery models with intermediate districts, districts, and public school academies to accelerate the
adoption of innovative education delivery models statewide.
(b) Provide leadership for this state’s system of virtual learning education by doing the following activities:
(i) Develop and report policy recommendations to the governor and the legislature that accelerate the
expansion of effective virtual learning in this state’s schools.
(ii) Provide a clearinghouse for research reports, academic studies, evaluations, and other information related
to virtual learning.
(iii) Promote and distribute the most current instructional design standards and guidelines for virtual
teaching.
(iv) In collaboration with the department and interested colleges and universities in this state, support
implementation and improvements related to effective virtual learning instruction.
(v) Pursue public/private partnerships that include districts to study and implement competency -based
technology-rich virtual learning models.
(vi) Create a statewide network of school-based mentors serving as liaisons between pupils, virtual instructors,
parents, and school staff, as provided by the department or the center, and provide mentors with research -based
training and technical assistance designed to help more pupils be successful virtual learners.
(vii) Convene focus groups and conduct annual surveys of teachers, administrators, pupils, parents, and others
to identify barriers and opportunities related to virtual learning.
(viii) Produce an annual consumer awareness report for schools and parents about effective virtual education
providers and education delivery models, performance data, cost structures, and research trends.
(ix) Provide an internet -based platform that educators can use to create student -centric learning tools and
resources for sharing in the state’s open educational resource repository and facilitate a user network that assists
educators in using the content creation platform and state repository for open educational resources. As part of
this initiative, the Michigan Virtual University shall work collaboratively with districts and intermediate districts
to establish a plan to make available virtual resources that align to Michigan’s K to 12 curriculum standards for
use by students, educators, and parents.
(x) Create and maintain a public statewide catalog of virtual learning courses being offered by all public schools
and community colleges in this state. The Michigan Virtual Learning Research Institute shall identify and develop
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a list of nationally recognized best practices for virtual learning and use this list to support reviews of virtual
course vendors, courses, and instructional practices. The Michigan Virtual Learning Research Institute shall also
provide a mechanism for in termediate districts to use the identified best practices to review content offered by
constituent districts. The Michigan Virtual Learning Research Institute shall review the virtual course offerings
of the Michigan Virtual University, and make the results from these reviews available to the public as part of the
statewide catalog. The Michigan Virtual Learning Research Institute shall ensure that the statewide catalog is
made available to the public on the Michigan Virtual University website and shall all ow the ability to link it to
each district’s website as provided for in section 21f. The statewide catalog must also contain all of the following:
(A) The number of enrollments in each virtual course in the immediately preceding school year.
(B) The number of enrollments that earned 60% or more of the total course points for each virtual course in
the immediately preceding school year.
(C) The pass rate for each virtual course.
(xi) Support registration, payment services, and transcript functionality for the statewide catalog and train
key stakeholders on how to use new features.
(xii) Collaborate with key stakeholders to examine district level accountability and teacher effectiveness issues
related to virtual learning under section 21f and make findings and recommendations publicly available.
(xiii) Provide a report on the activities of the Michigan Virtual Learning Research Institute.
(3) To further enhance its expertise and leadership in virtual learning, the Michigan Virtual University shall
continue to operate the Michigan Virtual School as a statewide laboratory and quality model of instruction by
implementing virtual and blended le arning solutions for Michigan schools in accordance with the following
parameters:
(a) The Michigan Virtual School must maintain its accreditation status from recognized national and
international accrediting entities.
(b) The Michigan Virtual University shall use no more than $1,000,000.00 of the amount allocated under this
section to subsidize the cost paid by districts for virtual courses.
(c) In providing educators responsible for the teaching of virtual courses as provided for in this section, the
Michigan Virtual School shall follow the requirements to request and assess, and the department of state police
shall provide, a criminal histor y check and criminal records check under sections 1230 and 1230a of the revised
school code, MCL 380.1230 and 380.1230a, in the same manner as if the Michigan Virtual School were a school
district under those sections.
(4) From the funds allocated under subsection (1), the Michigan Virtual University shall support the expansion
of new online and blended educator professional development programs.
(5) From the funds allocated under subsection (1), the Michigan Virtual University shall operate a
comprehensive statewide laboratory designed to function as a hub for cutting -edge research, the identification
and dissemination of best practices, rigorous experimentation, policy formulation, and proactive efforts to enhance
awareness about the responsible utilization of artificial intelligence in schools.
(6) If the course offerings are included in the statewide catalog of virtual courses under subsection (2)(b)( x),
the Michigan Virtual School operated by the Michigan Virtual University may offer virtual course offerings,
including, but not limited to, all of the following:
(a) Information technology courses.
(b) College level equivalent courses, as that term is defined in section 1471 of the revised school code,
MCL 380.1471.
(c) Courses and dual enrollment opportunities.
(d) Programs and services for at-risk pupils.
(e) High school equivalency test preparation courses for adjudicated youth.
(f) Special interest courses.
(g) Professional development programs for teachers, school administrators, other school employees, and school
board members.
(7) If a home-schooled or nonpublic school student is a resident of a district that subscribes to services provided
by the Michigan Virtual School, the student may use the services provided by the Michigan Virtual School to the
district without charge to the student beyond what is charged to a district pupil using the same services.
(8) By not later than December 1 of each fiscal year for which funding is allocated under this section, the
Michigan Virtual University shall provide a report to the house and senate appropriations subcommittees on
school aid, the state budget director, th e house and senate fiscal agencies, and the department that includes at
least all of the following information related to the Michigan Virtual School for the preceding fiscal year:
(a) A list of the districts served by the Michigan Virtual School.
(b) A list of virtual course titles available to districts.
(c) The total number of virtual course enrollments and information on registrations and completions by course.
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(d) The overall course completion rate percentage.
(9) In addition to the information listed in subsection (8), the report under subsection (8) must also include a
plan to serve at least 600 schools with courses from the Michigan Virtual School or with content available through
the internet-based platform identified in subsection (2)(b)(ix).
(10) The governor may appoint an advisory group for the Michigan Virtual Learning Research Institute
established under subsection (2). The members of the advisory group serve at the pleasure of the governor and
without compensation. The purpose of the advisory group is to make recommendations to the governor, the
legislature, and the president and board of the Michigan Virtual University that will accelerate innovation in this
state’s education system in a manner that will prepare elementary and secondary students to be career and college
ready and that will promote the goal of increasing the percentage of residents of this state with high -quality
degrees and credentials to at least 60% by 2030.
(11) By not later than November 1 of each fiscal year for which funding is allocated under this section, the
Michigan Virtual University shall submit to the house and senate appropriations subcommittees on school aid,
the state budget director, and the hou se and senate fiscal agencies a detailed budget for that fiscal year that
includes a breakdown on its projected costs to deliver virtual educational services to districts and a summary of
the anticipated fees to be paid by districts for those services. By not later than March 1 each fiscal year for which
funding is allocated under this section, the Michigan Virtual University shall submit to the house and senate
appropriations subcommittees on school aid, the state budget director, and the house and senate fiscal agencies a
breakdown on its actual costs to deliver virtual educational services to districts and a summary of the actual fees
paid by districts for those services based on audited financial statements for the immediately preceding fiscal
year.
(12) As used in this section:
(a) “Blended learning ” means a hybrid instructional delivery model where pupils are provided content,
instruction, and assessment, in part at a supervised educational facility away from home where the pupil and a
teacher with a valid Michigan teaching certificate are in the same physical location and in part through internet-
connected learning environments with some degree of pupil control over time, location, and pace of instruction.
(b) “Cyber school” means a full-time instructional program of virtual courses for pupils that may or may not
require attendance at a physical school location.
(c) “Virtual course” means a course of study that is capable of generating a credit or a grade and that is provided
in an interactive learning environment in which the majority of the curriculum is delivered using the internet
and in which pupils are separated from their instructor or teacher of record by time or location, or both.

Sec. 99. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not
to exceed $500,000.00 for 2023-2024 only to Kentwood Public Schools and Oak Park Schools for a plant -based
school meals pilot grant program. Grants shall be used for developing and implementing plant-based meal options
in school cafeterias, training school food service staff in the preparation of plant -based meals, and purchasing
necessary kitchen equipment to facilitate the preparation of plant -based meals. Recipients of grants under this
program shall submit a report to the department detailing the use of funds and the impact of t he program on
student meal choices and environmental sustainability.
(2) From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$500,000.00 for 2024-2025 only for a virtual reality youth peace literacy initiative pilot program.
(3) From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$1,000,000.00 for 2024-2025 only to the American Lightweight Materials Manufacturing Innovation Institute, in
partnership with the Michigan Manufacturers Association, Amatrol, and the ATS LAB Midwest. Funds received
under this subsection must be used to provide high schools and intermediate districts in this state with
competency-based, technology infused talent development programs that provide curricula, e-learning, hands-on
e-learning systems, curricula -specific training equipment, installation, orientation, teacher training, industry -
recognized skill certifications, and connections to local manufacturers for students in high schools and
intermediate districts in this state.
(4) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed
$2,500,000.00 for 2024-2025 only to the Dearborn City School District for costs to expand the career and technical
education program for the district, including, but not limited to, expansion of a cybersecurity certificate program.
Costs in this subsection may include both operational and capital costs.
(5) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed
$1,500,000.00 for 2024 -2025 only to the Dearborn City School District to support the construction of outdoor
classrooms and other green space for Salina Intermediate School in the Dearborn City School District.
(6) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed
$2,000,000.00 for 2024 -2025 only to the School District of the City of Harper Woods to support the costs for
construction and operation of the daily life skills training center, an educational and skills development program
with individualized training to improve a child ’s abilities to independently perform routine daily activities and
effectively use community resources.
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(7) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed
$2,500,000.00 for 2024 -2025 only to the Lansing Public School District for development and infrastructure
improvements.
(8) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only an
amount not to exceed $700,000.00 to Clintondale Community Schools for safety and security upgrades.
(9) From the general fund money appropriated in section 11, there is allocated for 2024 -2025 only an amount
not to exceed $500,000.00 to the city of Algonac in St. Clair County to support asbestos remediation and
redevelopment in a former school building.
(10) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an
amount not to exceed $700,000.00 to South Lyon Community Schools for student mental health services.
(11) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an
amount not to exceed $200,000.00 to Farmington Public School District for high-intensity tutoring.
(12) From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount
not to exceed $2,100,000.00 to the Marygrove Conservancy for the creation of the Marygrove Film School.
(13) From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount
not to exceed $2,900,000.00, and from the state school aid fund money appropriated in section 11, there is allocated
for 2024-2025 only an amount not to exceed $3,100,000.00 to Rudyard Area Schools for infrastructure.
(14) From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount
not to exceed $250,000.00 to Brookview Montessori School for structural updates, including, but not limited to,
electrical and HVAC.
(15) From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount
not to exceed $100,000.00 for Okemos Public Montessori at Central for district lead abatement.
(16) From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount
not to exceed $500,000.00 to Wellspring Detroit to support the academic and youth development program.
(17) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an
amount not to exceed $500,000.00 to a district or intermediate district to support the implementation of the
MI Student Voice Perception Survey.
(18) From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount
not to exceed $3,700,000.00 to the recipients identified in this subsection to support capital costs to increase safety
of student pedestrians.
(a) A recipient of a grant under this subsection shall use the funds to increase the safety of student pedestrians
through capital improvements. A grant recipient may enter into agreements with other units of local government
to complete eligible projects. Improvements may include, but are not limited to, all of the following:
(i) Signage and painting for crosswalks.
(ii) Installing or repairing sidewalks.
(iii) Adding turning lanes.
(iv) Installing or repairing traffic signal lights.
(b) From the allocation in this subsection, $3,000,000.00 is allocated to Macomb Township in Macomb County
for road, signal, and pedestrian crossing improvements at the intersection of 21 Mile Road and Heydenreich Road.
The purpose of the improvements is to increase safety for student pedestrians at nearby schools.
(c) From the allocation in this subsection, $250,000.00 is allocated to the Woodhaven -Brownstown School
District to construct sidewalks to connect nearby residential areas to schools in the district.
(d) From the allocation in this subsection, $450,000.00 is allocated to the Village of Brooklyn to partner with
the Columbia Charter School District and Columbia Charter Township to improve student pedestrian safety.
(e) The funds allocated under this subsection for 2024 -2025 are a work project appropriation, and any
unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue
to provide support for capital costs to increase safety of student pedestrians. The estimated completion date of the
work project is September 30, 2029.
(19) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an
amount not to exceed $7,000,000.00 to Detroit Public Schools Community District to offset the cost of relocating
the Davis Aerospace Technical Hi gh School to the Coleman A. Young International Airport. Notwithstanding
section 18a, funds allocated under this subsection may be available for expenditure until September 30, 2027. A
recipient of funding under this subsection must return any unexpended f unds to the department in a manner
prescribed by the department by not later than October 30, 2027.
(20) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an
amount not to exceed $1,200,000.00 to Grand Rapids Public Schools to supplement funding for the school meals
program in section 30d.
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(21) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$750,000.00 to Livonia Public Schools to support the Thrive Track – Healthy Living Skills for Independence
program.
(22) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$450,000.00 to Grosse Pointe Public Schools for technology costs.
(23) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$1,000,000.00 to a district or intermediate district to partner with the Arab Community Center for Economic and
Social Services (ACCESS) in Dearborn to rehabilitate and expand the ACCESS Innovation Center.
(24) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$1,200,000.00 to Lansing Public School District to support renovation of the Don Johnson Fieldhouse and
expansion of the Lansing Student Development Program.
(25) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$1,000,000.00 to Clintondale Community Schools for expenses for school buildings related to flood damage.
(26) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$3,000,000.00 to an intermediate district to partner with the Michigan Regional Council of Carpenters and
Millwrights, an entity located in the city of Detroit, for the schools to tools program, which exposes middle and
high school students to the building trades and to apprenticeship opportunities.
(27) From the state school aid fund money appropriated in section 11, there is allocated for 2024 -2025 only
$12,000,000.00 to an intermediate district to partner with the Sam Beauford Woodworking Institute, a 501(c)(3)
entity located in the city of Adrian, to support the expansion of education opportunities.
(28) From the state school aid fund money appropriated in section 11, there is allocated $245,000.00 for 2024-
2025 only to Mid Peninsula School District for improvements to a heating, ventilation, and air conditioning
system.
(29) The funds allocated under this section for 2024 -2025 are a work project appropriation, and any
unexpended funds for 2024 -2025 are carried forward into 2025 -2026. The purpose of the work project is to
complete projects described in this section. The es timated completion date of the work project is September 30,
2026.
(30) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 99h. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is
allocated an amount not to exceed $5,000,000.00 for 2025 -2026 only for competitive grants to districts and
intermediate districts, and from the general pupil support reserve fund money appropriated in section 11, there
is allocated $600,000.00 for 2025 -2026 only for competitive grants to nonpublic schools, that provide pupils in
grades pre -K to 12 with expanded opportunities to improv e mathematics, science, computer science, and
technology skills by participating in robotics competition programs hosted by program providers including, but
not limited to, FIRST (for inspiration and recognition of science and technology) Robotics, including FIRST Lego
League - Discover, Explore, and Challenge, FIRST Tech challenge, and FIRST Robotics competition, LTU
Robofest, MATE (Marine Advanced Technical Education), REC (Robotics Education Competition) Foundation,
Square One Education Network, VEX, and other provider s approved by the department. It is the intent of the
legislature that the appropriations under this section will be funded with state school aid pupil support reserve
fund money and general pupil support reserve fund money through 2027-2028. All approved providers shall make
all programs available to students in this state regardless of geographical location. Programs funded under this
section are intended to increase the number of pupils demonstrating proficiency in science and mathematics on
the state assessments and to increase the number of pupils who are college - and career-ready upon high school
graduation. Notwithstanding section 17b, the department shall make grant payments to districts , nonpublic
schools, and intermediate districts under this section on a schedule determined by the department. The
department shall set maximum grant awards for each different level of programming and competition in a manner
that both maximizes the number of teams that will be able to receive funds and expands the geog raphical
distribution of teams. Districts and intermediate districts that receive funds under this section must provide
relevant student participation information, as determined by the department, to program and competition
providers described in this section. For a district or intermediate district to count a program competition provider
for purposes of payments under this section, the program and competition providers must agree to aggregate data
received by districts and intermediate districts and provid e this information to the department in a form and
manner determined by the department.
(2) The department shall do all of the following for purposes of this section:
(a) Both of the following by not later than 60 days after the state school aid appropriations bill for the current
fiscal year is enacted into law or October 1 of the current fiscal year, whichever is later:
(i) Open applications for funding under this section to all districts , nonpublic schools, and intermediate
districts.
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(ii) Publish a list of approved programs and vendors for purposes of this section in a manner that is accessible
to all applicants. To obtain approval under this subparagraph, a program or vendor must submit to the
department registration information, including any fees; pledge that it will post this information on its website;
and, by not later than January 1 of the current fiscal year, submit this information to the department for
publication on the department’s website.
(b) By not later than 60 days after applications are opened as described in subdivision (a), close applications
under this section.
(c) By not later than 60 days after applications are closed as described in subdivision (b), make all
determinations concerning funding under this section.
(d) By not later than July 1 of the current fiscal year, publish a document listing the requirements for becoming
an approved program or vendor under subdivision (a).
(3) Except as otherwise provided under this subsection, if funding under this section is insufficient to fulfill all
funding requests by qualified applicants under this section, the department shall prorate the total funding
allocated under this section eq ually among all qualified applicants. However, for funding under this section
toward grants under subsection (5)(b), in its proration under this subsection, the department shall ensure that
each district is paid in an amount equal to the percentage the dep artment would have paid the district in grant
funding under subsection (5)(b), but for proration under this subsection, with no district receiving a grant under
subsection (5)(b) in an amount that is greater than the district’s total accrued costs under subsection (5)(b).
(4) A district, nonpublic school, or intermediate district applying for a grant under this section must submit
an application in a form and manner prescribed by the department. To be eligible for a grant, a district, nonpublic
school, or intermediate district must demonstrate in its application that the district , nonpublic school, or
intermediate district has established a partnership for the purposes of the robotics program with at least
1 sponsor, business entity, higher education institution, technical s chool, or individual, must submit a budget,
and must provide a local in-kind or cash match from other private or local funds of at least 25% of the cost of the
robotics program award.
(5) The department shall distribute the grant funding under this section for the following purposes:
(a) Grants to districts, nonpublic schools, or intermediate districts to pay for stipends not to exceed $1,500.00
per building for coaching.
(b) Grants to districts , nonpublic schools, or intermediate districts for event registrations, materials, travel
costs, and other expenses associated with the preparation for and attendance at robotics events and competitions.
(c) Grants to districts , nonpublic schools, or intermediate districts for awards to teams that advance to the
next levels of competition as determined by the department. The department shall determine an equal amount
per team for those teams that advance.
(6) A nonpublic school that receives a grant under this section may use the funds for either robotics or Science
Olympiad programs.
(7) To be eligible to receive funds under this section, a nonpublic school must be a nonpublic school registered
with the department and must meet all applicable state reporting requirements for nonpublic schools.
(8) To be eligible to receive a grant under this section, a district , nonpublic school, or intermediate district
must do all of the following:
(a) If the district, nonpublic school, or intermediate district is requesting funding for more than 1 team for a
building, meet the minimum requirements for team size as determined by the approved program provider.
(b) Participate in at least the minimum number of competitions as determined by the approved program
provider.
(c) Participate in at least 1 in-person competition.
(9) For purposes of this section, an approved program or vendor under this section that provides a program
under this section shall not work with the department to set prices or policies for the program.
(10) As used in this section, “current fiscal year” means the fiscal year for which an allocation is made under
this section.

Sec. 99ee. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount
not to exceed $3,000,000.00 for 2024-2025 only to Wayne RESA for the provision of programming, in partnership
with a nonprofit organization that is tax-exempt under section 501(c)(3) of the internal revenue code of 1986,
26 USC 501, and that provides academic and career support programs and services, to help more Hispanic
students to graduate from college. A district that receives funds under this section shall contract with a nonprofit
organization for purposes of this section that received state funds for purposes described in this section in the
immediately preceding fiscal year.
(2) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.
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(3) The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended
funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue to provide
academic and career support programs and services and to help more Hispanic students to graduate from college.
The estimated completion date of the work project is September 30, 2026.

Sec. 99mm. (1) From the state school aid fund money appropriated in section 11, there is allocated
$4,500,000.00 for 2024-2025 only to Menominee Area Public Schools to cover the cost of an emergency water and
asbestos event, cost inflation for unfinished bond work delayed due to asbestos cleanup, and costs related to
consolidation activities.
(2) If, by June 20, 2035, Menominee Area Public Schools receives reimbursement from the settlement of a court
case addressing the nonfulfillment of contracted duties regarding an emergency water and asbestos event,
Menominee Area Public Schools, not later than 90 days following the receipt of that court settlement amount,
must reimburse the department in the amount it received from that settlement, or the full amount received under
this section, whichever is less. The department shall determine the mode of payment for the reimbursement.
(3) The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended
funds for 2024-2025 are carried forward into 2025 -2026. The purpose of the work project is to continue to cover
the cost of an emergency water and asbestos event, cost inflation for unfinished bond work delayed due to asbestos
cleanup, and costs related to consolidation activities. The estimated completion date of the work project is
September 30, 2026.
(4) Notwithstanding section 18a, funds allocated under subsection (1) may be available for expenditure until
September 30, 2027. The recipient of funding under subsection (1) must return any unexpended funds to the
department in the manner prescribed by the department not later than October 30, 2027.
(5) Notwithstanding section 17b, the department shall make payments under this section on a schedule
determined by the department.

Sec. 101. (1) To be eligible to receive state aid under this article, not later than the fifth Wednesday after the
pupil membership count day and not later than the fifth Wednesday after the supplemental count day, each
district superintendent shall submit and certify to the center and the intermediate superintendent, in the form
and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance, including
identification of tuition -paying p upils, in the district as of the pupil membership count day and as of the
supplemental count day, as applicable, for the current school year. In addition, a district maintaining school
during the entire year shall submit and certify to the center and the i ntermediate superintendent, in the form
and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance in the district
for the current school year pursuant to rules promulgated by the superintendent. Not later than the
sixth Wednesday after the pupil membership count day and not later than the sixth Wednesday after the
supplemental count day, the district shall resolve any pupil membership conflicts with another district, correct
any data issues, and recertify the data in a form and manner prescribed by the center and file the certified data
with the intermediate superintendent. If a district fails to submit and certify the attendance data, as required
under this subsection, the center shall notify the department and the department shall withhold state aid due to
be distributed under this article from the defaulting district immediately, beginning with the next payment after
the failure and continuing with each payment until the district complies with this subsection. If a district does
not comply with this subsection by the end of the fiscal year, the district forfeits the amount withheld. A person
who willfully falsifies a figure or statement in the certified and sworn copy of enrollment is subject to penalty as
prescribed by section 161.
(2) To be eligible to receive state aid under this article, not later than the twenty -fourth Wednesday after the
pupil membership count day and not later than the twenty-fourth Wednesday after the supplemental count day,
an intermediate district shall subm it to the center, in a form and manner prescribed by the center, the audited
enrollment and attendance data as described in subsection (1) for the pupils of its constituent districts and of the
intermediate district. If an intermediate district fails to submit the audited data as required under this subsection,
the department shall withhold state aid due to be distributed under this article from the defaulting intermediate
district immediately, beginning with the next payment after the failure and continuin g with each payment until
the intermediate district complies with this subsection. If an intermediate district does not comply with this
subsection by the end of the fiscal year, the intermediate district forfeits the amount withheld.
(3) Except as otherwise provided in subsections (11) and (12) all of the following apply to the provision of pupil
instruction:
(a) Except as otherwise provided in this section, each district shall provide at least 1,098 hours and 180 days
of pupil instruction. If a collective bargaining agreement that provides a complete school calendar was in effect
for employees of a district as of June 24, 2014, and if that school calendar is not in compliance with this
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subdivision, then this subdivision does not apply to that district until after the expiration of that collective
bargaining agreement. A district may apply for a waiver under subsection (9) or subdivision (h) from the
requirements of this subdivision.
(b) Except as otherwise provided in this article, a district failing to comply with the required minimum hours
and days of pupil instruction under this subsection forfeits from its total state aid allocation an amount
determined by applying a ratio of the number of hours or days the district was in noncompliance in relation to the
required minimum number of hours and days under this subsection. Not later than the first business day in
August, the board of each district shall either certify to the department that the district was in full compliance
with this section regarding the number of hours and days of pupil instruction in the previous school year, or report
to the department, in a form and manner prescribed by the center, each instance of noncompliance. If the district
did not provide at least the required minimum number of hours and days of pupil instruction under this
subsection, the department shall make the deduction of state aid in the following fiscal year from the first payment
of state school aid. A district is not subject to forfeiture of funds under this subsection for a fiscal year in which a
forfeiture was already imposed under subsection (6).
(c) Hours or days lost because of strikes or teachers ’ conferences are not counted as hours or days of pupil
instruction.
(d) Except as otherwise provided in subdivisions (e) and (f), if a district does not have at least 75% of the
district’s membership in attendance on any day of pupil instruction, the department shall pay the district state
aid in that proportion of 1/180 that the actual percent of attendance bears to 75%.
(e) If a district adds 1 or more days of pupil instruction to the end of its instructional calendar for a school year
to comply with subdivision (a) because the district otherwise would fail to provide the required minimum number
of days of pupil instructi on even after the operation of subsection (4) due to conditions not within the control of
school authorities, then subdivision (d) does not apply for any day of pupil instruction that is added to the end of
the instructional calendar. Instead, for any of those days, if the district does not have at least 60% of the district’s
membership in attendance on that day, the department shall pay the district state aid in that proportion of
1/180 that the actual percentage of attendance bears to 60%. For any day of pupil instruction added to the
instructional calendar as described in this subdivision, the district shall report to the department the percentage
of the district’s membership that is in attendance, in the form and manner prescribed by the department.
(f) At the request of a district that operates a department -approved alternative education program and that
does not provide instruction for pupils in all of grades K to 12, the superintendent shall grant a waiver from the
requirements of subdivision (d). The waiver must provide that an eligible district is subject to the proration
provisions of subdivision (d) only if the district does not have at least 50% of the district ’s membership in
attendance on any day of pupil instruction. In order to be eligible for this waiver, a district must maintain records
to substantiate its compliance with the following requirements:
(i) The district offers the minimum hours of pupil instruction as required under this section.
(ii) For each enrolled pupil, the district uses appropriate academic assessments to develop an individual
education plan that leads to a high school diploma.
(iii) The district tests each pupil to determine academic progress at regular intervals and records the results
of those tests in that pupil’s individual education plan.
(g) All of the following apply to a waiver granted under subdivision (f):
(i) If the waiver is for a blended model of delivery, a waiver that is granted for the 2011 -2012 fiscal year or a
subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(ii) If the waiver is for a 100% online model of delivery and the educational program for which the waiver is
granted makes educational services available to pupils for a minimum of at least 1,098 hours during a school year
and ensures that each pupil participates in the educational program for at least 1,098 hours during a school year,
a waiver that is granted for the 2011 -2012 fiscal year or a subsequent fiscal year remains in effect unless it is
revoked by the superintendent.
(iii) A waiver that is not a waiver described in subparagraph ( i) or (ii) is valid for 3 fiscal years, unless it is
revoked by the superintendent, and must be renewed at the end of the 3-year period to remain in effect.
(h) For the 2024 -2025 school year only, a district does not need to meet the minimum number of hours and
days of pupil instruction requirement under subdivision (a) if that district meets all of the following requirements:
(i) The district is located wholly or partially in a county that is covered by a state of emergency declared by the
governor.
(ii) A majority of the district board votes to exempt the district from the minimum number of hours and days
of pupil instruction required under subdivision (a).
(iii) The vote by the district board under subparagraph (ii) exempts the district from providing only the hours
and days of pupil instruction actually missed due to the state of emergency.
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(iv) The vote by the district board under subparagraph (ii) exempts the district from not more than 15 days of
pupil instruction required under subdivision (a). The amount that may be exempted under this subdivision is in
addition to any days counted as pupil instruction under subsection (4).
(i) The superintendent shall promulgate rules for the implementation of this subsection.
(4) All of the following apply to the counting of days and hours of pupil instruction under this section:
(a) Except as otherwise provided in this subsection, the first 6 days or the equivalent number of hours for
which pupil instruction is not provided because of conditions not within the control of school authorities, such as
severe storms, fires, epidemics, utility power unavailability, water or sewer failure, or health conditions as defined
by the city, county, or state health authorities, are counted as hours and days of pupil instruction.
(b) With the approval of the superintendent of public instruction, the department shall count as hours and
days of pupil instruction for a fiscal year not more than 3 additional days or the equivalent number of additional
hours for which pupil instruction is not provided in a district due to unusual and extenuating occurrences
resulting from conditions not within the control of school authorities such as those conditions described in this
subsection.
(c) A district that counts hours or days of professional development for teachers as hours or days of pupil
instruction, as provided under subsection (10), is eligible to have additional hours or days counted as hours and
days of pupil instruction as provi ded under subdivision (b) to the same extent as a district that does not count
hours or days of professional development for teachers as hours or days of pupil instruction.
(d) In deciding whether or not to approve the counting of additional hours or days of pupil instruction under
subdivision (b) for a district, the superintendent of public instruction shall not take into account whether or not
the district counts hours or days of professional development for teachers as hours or days of pupil instruction, as
provided under subsection (10).
(e) Subsequent hours or days beyond those described in subdivisions (a) and (b) are not counted as hours or
days of pupil instruction.
(5) A district does not forfeit part of its state aid appropriation because it adopts or has in existence an
alternative scheduling program for pupils in kindergarten if the program provides at least the number of hours
required under subsection (3) for a full-time equated membership for a pupil in kindergarten as provided under
section 6(4).
(6) In addition to any other penalty or forfeiture under this section, if at any time the department determines
that 1 or more of the following have occurred in a district, the district forfeits in the current fiscal year beginning
in the next payment to b e calculated by the department a proportion of the funds due to the district under this
article that is equal to the proportion below the required minimum number of hours and days of pupil instruction
under subsection (3), as specified in the following:
(a) The district fails to operate its schools for at least the required minimum number of hours and days of pupil
instruction under subsection (3) in a school year, including hours and days counted under subsection (4).
(b) The board of the district takes formal action not to operate its schools for at least the required minimum
number of hours and days of pupil instruction under subsection (3) in a school year, including hours and days
counted under subsection (4).
(7) In providing the minimum number of hours and days of pupil instruction required under subsection (3), a
district shall use the following guidelines, and a district shall maintain records to substantiate its compliance
with the following guidelines:
(a) Except as otherwise provided in this subsection, a pupil must be scheduled for at least the required
minimum number of hours of instruction, excluding study halls, or at least the sum of 90 hours plus the required
minimum number of hours of instruction, including up to 2 study halls.
(b) The time a pupil is assigned to any tutorial activity in a block schedule may be considered instructional
time, unless that time is determined in an audit to be a study hall period.
(c) Except as otherwise provided in this subdivision, a pupil in grades 9 to 12 for whom a reduced schedule is
determined to be in the individual pupil’s best educational interest, or a pupil in grades 6 to 8 for whom a reduced
schedule is determined to be in the individual pupil’s best educational interest due to the pupil’s participation in
an advanced curriculum, must be scheduled for a number of hours equal to at least 80% of the required minimum
number of hours of pupil instruction to be considered a f ull-time equivalent pupil. A pupil in grades 6 to 12 who
is scheduled in a 4-block schedule may receive a reduced schedule under this subsection if the pupil is scheduled
for a number of hours equal to at least 75% of the required minimum number of hours o f pupil instruction to be
considered a full-time equivalent pupil.
(d) For a pupil in grades 9 to 12 enrolled in a cooperative education program, or for a special education pupil,
in determining full -time equated membership for that pupil, the pupil is not considered less than a full -time
equated pupil solely because of the effect of the pupil’s enrollment in the cooperative education program or special
education program, including necessary travel time, on the number of class hours provided by the district to the
pupil.
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(e) In grades 7 through 12, instructional time that is part of a Junior Reserve Officer Training Corps (JROTC)
program is considered to be pupil instruction time regardless of whether the instructor is a certificated teacher if
all of the following are met:
(i) The instructor has met all of the requirements established by the United States Department of Defense and
the applicable branch of the armed services for serving as an instructor in the Junior Reserve Officer Training
Corps program.
(ii) The board of the district or intermediate district employing or assigning the instructor complies with the
requirements of sections 1230 and 1230a of the revised school code, MCL 380.1230 and 380.1230a, with respect
to the instructor to the same extent as if employing the instructor as a regular classroom teacher.
(8) Except as otherwise provided in subsections (11) and (12), the department shall apply the guidelines under
subsection (7) in calculating the full-time equivalency of pupils.
(9) Upon application by the district for a particular fiscal year, the superintendent shall waive for a district
the minimum number of hours and days of pupil instruction requirement of subsection (3) for a department -
approved alternative education program or another innovative program approved by the department, including a
4-day school week. If a district applies for and receives a waiver under this subsection and complies with the
terms of the waiver, the district is not subject to forfeiture under this section for the specific pro gram covered by
the waiver. If the district does not comply with the terms of the waiver, the amount of the forfeiture is calculated
based upon a comparison of the number of hours and days of pupil instruction actually provided to the minimum
number of hours and days of pupil instruction required under subsection (3). A district shall report pupils enrolled
in a department -approved alternative education program under this subsection to the center in a form and
manner determined by the center. All of the following apply to a waiver granted under this subsection:
(a) If the waiver is for a blended model of delivery, a waiver that is granted for the 2011 -2012 fiscal year or a
subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(b) If the waiver is for a 100% online model of delivery and the educational program for which the waiver is
granted makes educational services available to pupils for a minimum of at least 1,098 hours during a school year
and ensures that each pupil is on track for course completion at proficiency level, a waiver that is granted for the
2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(c) A waiver that is not a waiver described in subdivision (a) or (b) is valid for 3 fiscal years, unless it is revoked
by the superintendent, and must be renewed at the end of the 3-year period to remain in effect.
(10) A district may count up to 38 hours of professional development for teachers as hours of pupil instruction.
All of the following apply to the counting of professional development as pupil instruction under this subsection:
(a) If the professional development exceeds 5 hours in a single day, that day may be counted as a day of pupil
instruction.
(b) At least 8 hours of the professional development counted as hours of pupil instruction under this subsection
must be recommended by a districtwide professional development advisory committee appointed by the district
board. The advisory committee must be composed of teachers employed by the district who represent a variety of
grades and subject matter specializations, including special education; nonteaching staff; parents; and
administrators. The majority membership of the committee must be composed of teaching staff.
(c) Professional development provided online is allowable and encouraged, as long as the instruction has been
approved by the district. The department shall issue a list of approved online professional development providers
that must include the Michigan Virtual School.
(d) Professional development may only be counted as hours of pupil instruction under this subsection for the
pupils of those teachers scheduled to participate in the professional development.
(e) The professional development must meet all of the following to be counted as pupil instruction under this
subsection:
(i) Be aligned to the school or district improvement plan for the school or district in which the professional
development is being provided.
(ii) Be linked to 1 or more criteria in the evaluation tool developed or adopted by the district or intermediate
district under section 1249 of the revised school code, MCL 380.1249.
(iii) Has been approved by the department as counting for state continuing education clock hours. The number
of hours of professional development counted as hours of pupil instruction under this subsection may not exceed
the number of state continuing education clock hours for which the professional development was approved.
(iv) Not more than a combined total of 10 hours of the professional development takes place before the first
scheduled day of school for the school year ending in the fiscal year and after the last scheduled day of school for
that school year.
(v) Not more than 10 hours of the professional development takes place in a single month.
(vi) At least 75% of teachers scheduled to participate in the professional development are in attendance.
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(11) Subsections (3) and (8) do not apply to a school of excellence that is a cyber school, as that term is defined
in section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school
code, MCL 380.553a. Beg inning July 1, 2021, this subsection is subject to section 8c. It is the intent of the
legislature that the immediately preceding sentence apply retroactively and is effective July 1, 2021.
(12) Subsections (3) and (8) do not apply to eligible pupils enrolled in a dropout recovery program that meets
the requirements of section 23a. As used in this subsection, “eligible pupil ” means that term as defined in
section 23a.
(13) At least every 2 years the superintendent shall review the waiver standards set forth in the pupil
accounting and auditing manuals to ensure that the waiver standards and waiver process continue to be
appropriate and responsive to changing trends in o nline learning. The superintendent shall solicit and consider
input from stakeholders as part of this review.

Sec. 104. (1) To receive state aid under this article, a district shall comply with sections 1249, 1278a, 1278b,
1279g, and 1280b of the revised school code, MCL 380.1249, 380.1278a, 380.1278b, 380.1279g, and 380.1280b,
and 1970 PA 38, MCL 388.1081 to 388. 1086. Subject to subsection (2), from the state school aid fund money
appropriated in section 11, there is allocated for 2024-2025 $39,509,400.00, and there is allocated for 2025 -2026
$37,509,400.00, for payments on behalf of districts for costs associated with complying with those provisions of
law. In addition, from the federal funds appropriated in section 11, there is allocated for 2025 -2026 an amount
estimated at $8,000,000.00 funded from DED -OESE, title VI, state assessment funds, and from DED -OSERS,
part B of the individuals with disabilities education act, 20 USC 1411 to 1419, plus any carryover federal funds
from previous year appropriations, for the purposes of complying with the every student succeeds act, Public
Law 114-95.
(2) The results of each test administered as part of the Michigan student test of educational progress
(M-STEP), including tests administered to high school students, must include an item analysis that lists all items
that are counted for individual pupil scores and the percentage of pupils choosing each possible response. The
department shall work with the ce nter to identify the number of students enrolled at the time assessments are
given by each district. In calculating the percentage of pupils assessed for a district’s scorecard, the department
shall use only the number of pupils enrolled in the district at the time the district administers the assessments
and shall exclude pupils who enroll in the district after the district administers the assessments.
(3) The department shall distribute federal funds allocated under this section in accordance with federal law
and with flexibility provisions outlined in Public Law 107-116, and in the education flexibility partnership act of
1999, Public Law 106-25.
(4) The department may recommend, but may not require, districts to allow pupils to use an external keyboard
with tablet devices for online M -STEP testing, including, but not limited to, open -ended test items such as
constructed response or equation builder items.
(5) Notwithstanding section 17b, the department shall make payments on behalf of districts, intermediate
districts, and other eligible entities under this section on a schedule determined by the department.
(6) From the allocation in subsection (1), there is allocated $500,000.00 for 2024-2025 and 2025-2026 for the
operation of an online reporting tool to provide student -level assessment data in a secure environment to
educators, parents, and pupils immediately after assessments are scored. The department and the center shall
ensure that any data collected by the online reporting tool do not provide individually identifiable student data to
the federal government.
(7) As used in this section:
(a) “DED” means the United States Department of Education.
(b) “DED-OESE” means the DED Office of Elementary and Secondary Education.
(c) “DED-OSERS” means the DED Office of Special Education and Rehabilitative Services.

Sec. 104b. (1) In order to receive state aid under this article, a district shall comply with this section and shall
administer the Michigan merit examination to pupils in grade 11, and to pupils in grade 12 who did not take the
complete Michigan merit examination in grade 11, as provided in this section. The Michigan merit examination
consists of a college entrance test, work skills test, and the summative assessment known as the Michigan student
test of educational progress (M-STEP).
(2) For the purposes of this section, the department of technology, management, and budget shall contract
with 1 or more providers to develop, supply, and score the Michigan merit examination. The Michigan merit
examination shall consist of all of the following:
(a) Assessment instruments that measure English language arts, mathematics, reading, and science, and are
used by the majority of colleges and universities in this state for entrance purposes. This may include 1 or more
writing components. In selecting assessment instruments to fulfill the requirements of this subdivision, the
department may consider the degree to which t hose assessment instruments are aligned to this state ’s content
standards.
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(b) One or more tests from 1 or more test developers that assess a pupil’s ability to apply at least reading and
mathematics skills in a manner that is intended to allow employers to use the results in making employment
decisions. The department of technology, management, and budget and the superintendent shall ensure that any
test or tests selected under this subdivision have all the components necessary to allow a pupil to be eligible to
receive the results of a nationally recognized evaluation of workfor ce readiness if the pupil’s test performance is
adequate.
(c) A social studies component.
(d) Any other component that is necessary to obtain the approval of the United States Department of Education
to use the Michigan merit examination for the purposes of the no child left behind act of 2001, Public Law 107-110,
or the every student succeeds act, Public Law 114-95.
(3) In addition to all other requirements of this section, all of the following apply to the Michigan merit
examination:
(a) The department of technology, management, and budget and the superintendent shall ensure that any
contractor used for scoring the Michigan merit examination supplies an individual report for each pupil that will
identify for the pupil’s parents and teachers whether the pupil met expectations or failed to meet expectations for
each standard, to allow the pupil’s parents and teachers to assess and remedy problems before the pupil moves to
the next grade.
(b) The department of technology, management, and budget and the superintendent shall ensure that any
contractor used for scoring, developing, or processing the Michigan merit examination meets quality management
standards commonly used in the assessment industry, including at least meeting level 2 of the capability maturity
model developed by the Software Engineering Institute of Carnegie Mellon University for the first year the
Michigan merit examination is offered to all grade 11 pupils and at least meeting level 3 of the capability maturity
model for subsequent years.
(c) The department of technology, management, and budget and the superintendent shall ensure that any
contract for scoring, administering, or developing the Michigan merit examination includes specific deadlines for
all steps of the assessment process, including, but not limited to, deadlines for the correct testing materials to be
supplied to schools and for the correct results to be returned to schools, and includes penalties for noncompliance
with these deadlines.
(d) The superintendent shall ensure that the Michigan merit examination meets all of the following:
(i) Is designed to test pupils on this state’s content standards in all subjects tested.
(ii) Complies with requirements of the no child left behind act of 2001, Public Law 107-110 or the every student
succeeds act, Public Law 114-95.
(iii) Is consistent with the code of fair testing practices in education prepared by the Joint Committee on
Testing Practices of the American Psychological Association.
(iv) Is factually accurate. If the superintendent determines that a question is not factually accurate and should
be excluded from scoring, the state board and the superintendent shall ensure that the question is excluded from
scoring.
(4) A district shall include on each pupil’s high school transcript all of the following:
(a) For each high school graduate who has completed the Michigan merit examination under this section, the
pupil’s scaled score on each subject area component of the Michigan merit examination.
(b) The number of school days the pupil was in attendance at school each school year during high school and
the total number of school days in session for each of those school years.
(5) The superintendent shall work with the provider or providers of the Michigan merit examination to produce
Michigan merit examination subject area scores for each pupil participating in the Michigan merit examination.
To the extent that the department determine s that additional test items beyond those included in the college
entrance component of the Michigan merit examination are required in a particular subject area, the department
shall ensure that all test items in that subject area are scaled and merged for the purposes of producing a Michigan
merit examination subject area score. The superintendent shall design and distribute to districts, intermediate
districts, and nonpublic schools a simple and concise document that describes the scoring for each subject area
and indicates the scaled score ranges for each subject area.
(6) The Michigan merit examination shall be administered in each district during the last 12 weeks of the
district’s school year. The superintendent shall ensure that the Michigan merit examination is scored and the
scores are returned to pupils, their parents or legal guardians, and districts not later than the beginning of the
pupil’s first semester of grade 12. The returned scores shall indicate at least the pupil ’s scaled score for each
subject area component and the range of scaled scores for each subj ect area. In reporting the scores to pupils,
parents, and schools, the superintendent shall provide standards-specific, meaningful, and timely feedback on the
pupil’s performance on the Michigan merit examination.
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(7) A district shall administer the complete Michigan merit examination to a pupil only once and shall not
administer the complete Michigan merit examination to the same pupil more than once. If a pupil does not take
the complete Michigan merit examination in grade 11, the district shall administer the complete Michigan merit
examination to the pupil in grade 12. If a pupil chooses to retake the college entrance examination component of
the Michigan merit examination, as described in subsection (2)(a), the pupil may do so through the provider of
the college entrance examination component and the cost of the retake is the responsibility of the pupil unless all
of the following are met:
(a) The pupil has taken the complete Michigan merit examination.
(b) The pupil meets the income eligibility criteria for free breakfast, lunch, or milk, as determined under the
Richard B. Russell national school lunch act, 42 USC 1751 to 1769i.
(c) The pupil has applied to the provider of the college entrance examination component for a scholarship or
fee waiver to cover the cost of the retake and that application has been denied.
(d) After taking the complete Michigan merit examination, the pupil has not already received a free retake of
the college entrance examination component paid for either by this state or through a scholarship or fee waiver
by the provider.
(8) The superintendent shall ensure that the length of the Michigan merit examination and the combined total
time necessary to administer all of the components of the Michigan merit examination are the shortest possible
that will still maintain the degree of reliability and validity of the Michigan merit examination results determined
necessary by the superintendent. The superintendent shall ensure that the maximum total combined length of
time that schools are required to set aside for pupils to answer all test questions on the Michigan merit
examination does not exceed 8 hours if the superintendent determines that sufficient alignment to applicable
Michigan merit curriculum content standards can be achieved within that time limit.
(9) A district shall provide accommodations to a pupil with disabilities for the Michigan merit examination, as
provided under section 504 of title V of the rehabilitation act of 1973, 29 USC 794; subtitle A of title II of the
Americans with disabilities a ct of 1990, 42 USC 12131 to 12134; the individuals with disabilities education act
amendments of 1997, Public Law 105 -17; and the implementing regulations for those statutes. The provider or
providers of the Michigan merit examination and the superintenden t shall mutually agree upon the
accommodations to be provided under this subsection.
(10) To the greatest extent possible, the Michigan merit examination shall be based on this state ’s content
standards, as appropriate. Annually, after each administration of the Michigan merit examination, the
department shall provide a report of the points per standard so that teachers will know what content will be
covered within the Michigan merit e xamination. The department may augment the college entrance and work
skills components of the Michigan merit examination to develop the assessment, depending on the alignment of
those components to this state ’s content standards. If these components do not align to these standards, the
department shall produce additional components as required by law, while minimizing the amount of time needed
for assessments.
(11) A child who is a student in a nonpublic school or home school may take the Michigan merit examination
under this section. To take the Michigan merit examination, a child who is a student in a home school shall contact
the district in which the child resides, and that district shall administer the Michigan merit examination, or the
child may take the Michigan merit examination at a nonpublic school if allowed by the nonpublic school. Upon
request from a nonpublic school, the superintendent shall direct the provider or providers to supply the Michigan
merit examination to the nonpublic school and the nonpublic school may administer the Michigan merit
examination. If a district administers the Michigan merit examination under this subsection to a child who is not
enrolled in the district, the scores for that child are not considered for any purpose to be scores of a pupil of the
district.
(12) In contracting under subsection (2), the department of technology, management, and budget shall consider
a contractor that provides electronically-scored essays with the ability to score constructed response feedback in
multiple languages and provide ongoing instruction and feedback.
(13) The purpose of the Michigan merit examination is to assess pupil performance in mathematics, science,
social studies, and English language arts for the purpose of improving academic achievement and establishing a
statewide standard of competency. The assessment under this section provides a common measure of data that
will contribute to the improvement of Michigan schools ’ curriculum and instruction by encouraging alignment
with Michigan’s curriculum framework standards and promotes pupil participation in higher level mathematics,
science, social studies, and English language arts courses. These standards are based upon the expectations of
what pupils should learn through high school and are aligned with national standards.
(14) For a pupil enrolled in a middle college program, other than a middle college operated as a shared
educational entity or a specialized shared educational entity, if the pupil receives at least 50% of the pupil ’s
instruction at the high school while in grade 11, the Michigan merit examination shall be administered to the
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pupil at the high school at which the pupil receives high school instruction, and the department shall include the
pupil’s scores on the Michigan merit examination in the scores for that high school for all purposes for which a
school’s or district’s results are reported. The department shall allow the middle college program to use a 5 -year
graduation rate for determining adequate yearly progress. As used in this subsection, “middle college” means a
program consisting of a series of courses and other requir ements and conditions, including an early college or
other program created under a memorandum of understanding, that allows a pupil to graduate from high school
with both a high school diploma and a certificate or degree from a community college or state public university.
(15) As used in this section:
(a) “English language arts” means reading and writing.
(b) “Social studies” means United States history, world history, world geography, economics, and American
government.

Sec. 104h. (1) From the state school aid fund money appropriated under section 11, there is allocated for 2025-
2026 an amount not to exceed $11,500,000.00 to districts to implement benchmark assessments during the 2025-
2026 school year. All of the following apply to the benchmark assessment system described in this subsection:
(a) The system must provide for all of the following:
(i) That, within the first 9 weeks of the 2025 -2026 school year, the district shall administer 1 or more
benchmark assessments provided by a provider approved under subsection (6), benchmark assessments described
in subdivision (b), or local benchmark assess ments, or any combination thereof, to all pupils in grades K to 8 to
measure proficiency in reading and mathematics.
(ii) That, in addition to the benchmark assessment or benchmark assessments administered under
subparagraph (i), by not later than the last day of the 2025 -2026 school year, the district shall administer the
benchmark assessment or assessments administered under subparagraph ( i) to all pupils in grades K to 8 to
measure proficiency in reading and mathematics. To support fall to spring growth calculations, the same
benchmark assessment that is administered in the fall must be administered in the spring.
(b) Except as otherwise provided in this section, a district may administer 1 or more of the following benchmark
assessments toward meeting the requirements under subdivision (a):
(i) A benchmark assessment in reading for students in grades K to 9 that contains progress monitoring tools
and enhanced diagnostic assessments.
(ii) A benchmark assessment in math for students in grades K to 8 that contains progress monitoring tools.
(c) The system must provide that, to the extent practicable, if a district administers a benchmark assessment
or benchmark assessments under this section, the district shall administer the same benchmark assessment or
benchmark assessments provided by a pr ovider approved under subsection (6), benchmark assessment or
benchmark assessments described in subdivision (b), or local benchmark assessment or local benchmark
assessments that it administered to pupils in previous school years, as applicable.
(d) The system must provide that, if a district administers a benchmark assessment or benchmark assessments
under this section, the district shall provide each pupil ’s data from the benchmark assessment or benchmark
assessments, as available, to the pupil’s parent or legal guardian within 30 days of administering the benchmark
assessment or benchmark assessments.
(e) The system must provide that, if a local benchmark assessment or local benchmark assessments are
administered under subdivision (a), the district shall report to the department, in a form and manner prescribed
by the department, the local benchmark assessment or local benchmark assessments that were administered and
how that assessment or those assessments measure changes, including any losses, as applicable, in learning, and
the district’s plan for addressing any losses in learning.
(f) The system must provide that, by not later than 30 days after a benchmark assessment or benchmark
assessments are administered under subdivision (a)( ii), or within a time frame specified by the department, the
district shall send benchmark assessment data, including grade level, student demographics, and mode of
instruction, to the department in a form and manner prescribed by the department, from all be nchmark
assessments administered in the 2025 -2026 school year, excluding data from a local benchmark assessment, as
applicable. If available, the data described in this subdivision must include information concerning pupil growth
from fall 2025 to spring 2026.
(2) To receive funding under this section, a district must do all of the following:
(a) Apply for the funding in a form and manner prescribed by the department.
(b) Administer 1 or more of the benchmark assessments described in subsection (6), excluding the benchmark
assessment described in subsection (4).
(c) Administer the same benchmark assessment or assessments in both the fall and spring, as required under
this section.
(d) Meet all reporting requirements pertaining to assessment and mode -of-instruction data outlined in this
section.
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(3) Subject to subsection (2), the department shall pay an equal amount per membership pupil in grades K to
8 in the district to each district that applies for funding under this section.
(4) The department shall make 1 of the benchmark assessments provided by a provider approved under
subsection (6) available to districts at no cost to the districts for purposes of meeting the requirements under this
section. The benchmark assessment described in this subsection must meet all of the following:
(a) Be aligned to the content standards of this state.
(b) Complement the state’s summative assessment system.
(c) Be internet-delivered and include a standards-based assessment.
(d) Provide information on pupil achievement with regard to learning content required in a given year or grade
span.
(e) Provide timely feedback to pupils and teachers.
(f) Be nationally normed.
(g) Provide information to educators about student growth and allow for multiple testing opportunities.
(5) By not later than November 15 of each year subsequent to a year in which funding is appropriated under
this section, the department shall submit a report to the house and senate appropriations committees, the house
and senate appropriations subcommitte es on school aid, and the house and senate fiscal agencies regarding the
benchmark assessment data received under this section, disaggregated by grade level and demographic subgroup
for each district. If information concerning pupil growth is included in t he data described in this subsection, it
must be incorporated in the report described in this subsection.
(6) The department shall approve at least 4 but not more than 6 providers of benchmark assessments for the
purposes of this section. The department shall inform districts of all of the providers approved under this
subsection in an equitable manner. The benchmark assessments, with the exclusion of the benchmark assessment
described in subsection (4), provided by approved providers under this subsection must meet all of the following:
(a) Be aligned to the content standards of this state.
(b) Complement the state’s summative assessment system.
(c) Be internet -delivered and include a standards -based remote, in -person, or both remote and in -person
assessment using a computer-adaptive model to target the instructional level of each pupil.
(d) Provide information on pupil achievement with regard to learning content required in a given year or grade
span.
(e) Provide immediate feedback to pupils and teachers.
(f) Be nationally normed.
(g) Provide multiple measures of growth and provide for multiple testing opportunities.

Sec. 107. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to
exceed $32,913,600.00 for 2025 -2026 for adult education programs authorized under this section. Except as
otherwise provided under subsections (14 ) and (15), funds allocated under this section are restricted for adult
education programs as authorized under this section only. A recipient of funds under this section shall not use
those funds for any other purpose.
(2) To be eligible for funding under this section, an eligible adult education provider shall employ certificated
teachers and qualified administrative staff and shall offer continuing education opportunities for teachers to allow
them to maintain certification.
(3) To be eligible to be a participant funded under this section, an individual must be enrolled in an adult basic
education program, an adult secondary education program, an adult English as a second language program, a
high school equivalency test prepar ation program, or a high school completion program, that meets the
requirements of this section, and for which instruction is provided, and the individual must be at least 18 years
of age by July 1 of the program year and the individual’s graduating class must have graduated.
(4) By April 1 of each fiscal year for which funding is allocated under this section, the intermediate districts
within a prosperity region or subregion shall determine which intermediate district will serve as the prosperity
region’s or subregion’s fiscal agent for the next fiscal year and shall notify the department in a form and manner
determined by the department. The department shall approve or disapprove of the prosperity region ’s or
subregion’s selected fiscal agent. From the funds allocated under subsection (1), an amount as determined under
this subsection is allocated to each intermediate district serving as a fiscal agent for adult education programs in
each of the prosperity regions or subregions identified by the department. An intermediate district shall not use
more than 5% of the funds allocated under this subsection for administration costs for serving as the fiscal agent.
The allocation provided to each intermediate district serving as a fiscal agent must be calculated as follows:
(a) Sixty percent of this portion of the funding must be distributed based upon the proportion of the state
population of individuals between the ages of 18 and 24 that are not high school graduates that resides in each of
the prosperity regions or subregions located within the intermediate district, as reported by the most recent 5-year
estimates from the American Community Survey (ACS) from the United States Census Bureau.
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(b) Thirty-five percent of this portion of the funding must be distributed based upon the proportion of the state
population of individuals age 25 or older who are not high school graduates that resides in each of the prosperity
regions or subregions locat ed within the intermediate district, as reported by the most recent 5 -year estimates
from the ACS from the United States Census Bureau.
(c) Five percent of this portion of the funding must be distributed based upon the proportion of the state
population of individuals age 18 or older who lack basic English language proficiency that resides in each of the
prosperity regions or subregions lo cated within the intermediate district, as reported by the most recent 5 -year
estimates from the ACS from the United States Census Bureau.
(5) To be an eligible fiscal agent, an intermediate district must agree to do the following in a form and manner
determined by the department:
(a) Distribute funds to adult education programs in a prosperity region or subregion as described in this
section.
(b) Collaborate with the career and educational advisory council, which is an advisory council of the workforce
development boards located in the prosperity region or subregion, or its successor, to develop a regional strategy
that aligns adult education p rograms and services into an efficient and effective delivery system for adult
education learners, with special consideration for providing contextualized learning and career pathways and
addressing barriers to education and employment.
(c) Collaborate with the career and educational advisory council, which is an advisory council of the workforce
development boards located in the prosperity region or subregion, or its successor, to create a local process and
criteria that will identify eligible adult education providers to receive funds allocated under this section based on
location, demand for services, past performance, quality indicators as identified by the department, and cost to
provide instructional services. The fiscal agent shall determine all local processes, criteria, and provider
determinations. However, the local processes, criteria, and provider services must be approved by the department
before funds may be distributed to the fiscal agent.
(d) Provide oversight to its adult education providers throughout the program year to ensure compliance with
the requirements of this section.
(e) Report adult education program and participant data and information as prescribed by the department.
(6) An adult basic education program, an adult secondary education program, or an adult English as a second
language program operated on a year-round or school year basis may be funded under this section, subject to all
of the following:
(a) The program enrolls adults who are determined by a department -approved assessment, in a form and
manner prescribed by the department, to be below twelfth grade level in reading or mathematics, or both, or to
lack basic English proficiency.
(b) The program tests individuals for eligibility under subdivision (a) before enrollment and upon completion
of the program in compliance with the state-approved assessment policy.
(c) A participant in an adult basic education program is eligible for reimbursement until 1 of the following
occurs:
(i) The participant’s reading and mathematics proficiency are assessed at or above the ninth grade level.
(ii) The participant fails to show progress on 2 successive assessments after having completed at least
450 hours of instruction.
(d) A participant in an adult secondary education program is eligible for reimbursement until 1 of the following
occurs:
(i) The participant’s reading and mathematics proficiency are assessed above the twelfth grade level.
(ii) The participant fails to show progress on 2 successive assessments after having at least 450 hours of
instruction.
(e) A funding recipient enrolling a participant in an English as a second language program is eligible for
funding according to subsection (9) until the participant meets 1 of the following:
(i) The participant is assessed as having attained basic English proficiency as determined by a department -
approved assessment.
(ii) The participant fails to show progress on 2 successive department -approved assessments after having
completed at least 450 hours of instruction. The department shall provide information to a funding recipient
regarding appropriate assessment instruments for this program.
(7) A high school equivalency test preparation program operated on a year -round or school year basis may be
funded under this section, subject to all of the following:
(a) The program enrolls adults who do not have a high school diploma or a high school equivalency certificate.
(b) The program administers a pre -test approved by the department before enrolling an individual to
determine the individual ’s literacy levels, administers a high school equivalency practice test to determine the
individual’s potential for success on the high school equivalency test, and administers a post-test upon completion
of the program in compliance with the state-approved assessment policy.
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(c) A funding recipient receives funding according to subsection (9) for a participant, and a participant may be
enrolled in the program until 1 of the following occurs:
(i) The participant achieves a high school equivalency certificate.
(ii) The participant fails to show progress on 2 successive department-approved assessments used to determine
readiness to take a high school equivalency test after having completed at least 450 hours of instruction.
(8) A high school completion program operated on a year-round or school year basis may be funded under this
section, subject to all of the following:
(a) The program enrolls adults who do not have a high school diploma.
(b) The program tests participants described in subdivision (a) before enrollment and upon completion of the
program in compliance with the state-approved assessment policy.
(c) A funding recipient receives funding according to subsection (9) for a participant in a course offered under
this subsection until 1 of the following occurs:
(i) The participant passes the course and earns a high school diploma.
(ii) The participant fails to earn credit in 2 successive semesters or terms in which the participant is enrolled
after having completed at least 900 hours of instruction.
(9) The department shall make payments to a funding recipient under this section in accordance with all of
the following:
(a) Statewide allocation criteria, including 3-year average enrollments, census data, and local needs.
(b) Participant completion of the adult basic education objectives by achieving an educational gain as
determined by the national reporting system levels; for achieving basic English proficiency, as determined by the
department; for achieving a high school equivalency certificate or passage of 1 or more individual high school
equivalency tests; for attainment of a high school diploma or passage of a course required for a participant to
attain a high school diploma; for enrollment in a postsecondary institut ion; or for entry into or retention of
employment, as applicable.
(c) Participant completion of core indicators as identified in the workforce innovation and opportunity act,
Public Law 113-128.
(d) Allowable expenditures.
(10) An individual who is not eligible to be a participant funded under this section may receive adult education
services upon the payment of tuition. In addition, an individual who is not eligible to be served in a program under
this section due to the pr ogram limitations specified in subsection (6), (7), or (8) may continue to receive adult
education services in that program upon the payment of tuition. The local or intermediate district conducting the
program shall determine the tuition amount.
(11) An individual who is an inmate in a state correctional facility is not counted as a participant under this
section.
(12) A funding recipient shall not commingle money received under this section or from another source for
adult education purposes with any other funds and shall establish a separate ledger account for funds received
under this section. This subsection does not prohibit a district from using general funds of the district to support
an adult education or community education program.
(13) A funding recipient receiving funds under this section may establish a sliding scale of tuition rates based
upon a participant’s family income. A funding recipient may charge a participant tuition to receive adult education
services under this section from that sliding scale of tuition rates on a uniform basis. The amount of tuition
charged per participant must not exceed the actual operating cost per participant minus any funds received under
this section per participant. A funding recipient may not c harge a participant tuition under this section if the
participant’s income is at or below 200% of the federal poverty guidelines published by the United States
Department of Health and Human Services.
(14) To receive funds under this section, a funding recipient shall furnish to the department, in a form and
manner determined by the department, all information needed to administer this program and meet federal
reporting requirements; shall allow the department or the department’s designee to review all records related to
the program for which it receives funds; and shall reimburse the state for all disallowances found in the review,
as determined by the department. In addition, a funding recipient shall agree to pay to a career and technical
education program under section 61a the amount of funding received under this section in the proportion of career
and technical education coursework used to satisfy adult basic education programming, as billed to the funding
recipient by programs operating under section 61a.
(15) From the amount appropriated in subsection (1), an amount not to exceed $4,000,000.00 is allocated for
2025-2026 to approved adult education programs that connect adult education participants with employers as
provided under this subsection. The depar tment shall determine regional planning allocations under this
subsection to each intermediate district serving as a fiscal agent for adult education programs in each of the
prosperity regions or subregions identified by the department in the same proporti on as funding calculated and
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allocated under subsection (4). Funds not fully utilized within a region may be transferred to other regions as
appropriate. To be eligible for funding under this subsection, a program must provide a collaboration linking adult
education programs within th e county, state -approved career and technical education programs, and local
employers. To receive funding under this subsection, an eligible program must satisfy all of the following:
(a) Connect adult education participants directly with employers by linking adult education, career and
technical skills, and workforce development.
(b) Require adult education staff to work with Michigan Works! agency to identify a cohort of participants who
are most prepared to successfully enter the workforce. Except as otherwise provided under this subdivision,
participants identified under this su bsection must be dually enrolled in adult education programming and in at
least 1 state-approved technical course through a career and technical education program. A program that links
participants identified under this subsection with adult education prog ramming and commercial driver license
courses does not need to enroll the participants in at least 1 state-approved technical course through a career and
technical education program to be considered an eligible program under this subsection.
(c) Employ an individual staffed as an adult education navigator who will serve as a caseworker for each
participant identified under subdivision (b). The navigator shall work with adult education staff and potential
employers to design an educational program best suited to the personal and employment needs of the participant
and shall work with human service agencies or other entities to address any barrier in the way of participant
access.
(16) By not later than December 1 of each year, a program funded under subsection (15) shall provide a report
to the senate and house appropriations subcommittees on school aid, to the senate and house fiscal agencies, and
to the state budget director identifying the number of participants, graduation rates, and a measure of transition
to employment.
(17) Except as otherwise provided in this subsection, participants under subsection (15) must be concurrently
enrolled and actively working toward obtaining a high school diploma or a high school equivalency certificate.
Concurrent enrollment is not required under this subsection for a participant that was enrolled in adult education
during the same program year and obtained a high school diploma or a high school equivalency certificate before
enrollment in an eligible career and technical skills program under subsection (15). Up to 10% of adult education
participants served under subsection (15) may already have a high school diploma or a high school equivalency
certificate at the time of enrollment in an eligible career and technical skills program under s ubsection (15) and
receive remediation services. It is intended that the cap described in the immediately preceding sentence is
continually lowered on an annual basis until it eventually is 0%.
(18) The department shall approve at least 2 high school equivalency tests and determine whether a high
school equivalency certificate meets the requisite standards for high school equivalency in this state.
(19) As used in this section:
(a) “Career and educational advisory council ” means an advisory council to the local workforce development
boards located in a prosperity region consisting of educational, employer, labor, and parent representatives.
(b) “Career pathway” means a combination of rigorous and high-quality education, training, and other services
that comply with all of the following:
(i) Aligns with the skill needs of industries in the economy of this state or in the regional economy involved.
(ii) Prepares an individual to be successful in any of a full range of secondary or postsecondary education
options, including apprenticeships registered under the act of August 16, 1937, commonly referred to as the
national apprenticeship act, 29 USC 50 et seq.
(iii) Includes counseling to support an individual in achieving the individual’s education and career goals.
(iv) Includes, as appropriate, education offered concurrently with and in the same context as workforce
preparation activities and training for a specific occupation or occupational cluster.
(v) Organizes education, training, and other services to meet the particular needs of an individual in a manner
that accelerates the educational and career advancement of the individual to the extent practicable.
(vi) Enables an individual to attain a secondary school diploma or its recognized equivalent, and at least
1 recognized postsecondary credential.
(vii) Helps an individual enter or advance within a specific occupation or occupational cluster.
(c) “Department” means the department of labor and economic opportunity.
(d) “Eligible adult education provider ” means a district, intermediate district, a consortium of districts, a
consortium of intermediate districts, or a consortium of districts and intermediate districts that is identified as
part of the local process described in subsection (5)(c) and approved by the department.

Sec. 111. A district having tuition pupils enrolled on the pupil membership count day of each year may charge
the district of residence an amount for tuition that does not exceed the tuition rate computed under section 1401
of the revised school code, MCL 380.1401. The rate charged by a district shall be uniform within each category of
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tuition pupils enrolled in the district. However, for a tuition pupil who resides in a K -5, K-6, or K-8 district and
who is enrolled in a grade not offered by the pupil ’s district of residence, the tuition rate charged to the pupil ’s
district of residence shall not exceed the foundation allowance of the pupil’s district of residence or the foundation
allowance of the educating district, whichever is greater. A district receiving funds under this act shall not charge
tuition to the parent or legal guardian of a pupil enrolled in the district as a nonresident pupil.

Sec. 147. (1) The allocation for 2025 -2026 for the public school employees’ retirement system pursuant to the
public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, is made using the
individual projected benefit entry age normal cost method of valuation and risk assumptions adopted by the public
school employees retirement board and the department of technology, management, and budget.
(2) The annual level percentage of payroll contribution rates for the 2025 -2026 fiscal year, as determined by
the retirement system, are estimated as follows:
(a) For public school employees who first worked for a public school reporting unit before July 1, 2010 and who
are enrolled in the health premium subsidy, the annual level percentage of payroll contribution rate is estimated
at 44.93% with 29.91% paid directly by the employer.
(b) For public school employees who first worked for a public school reporting unit on or after July 1, 2010 and
who are enrolled in the health premium subsidy, the annual level percentage of payroll contribution rate is
estimated at 40.19% with 25.17% paid directly by the employer.
(c) For public school employees who first worked for a public school reporting unit on or after July 1, 2010 and
who participate in the personal healthcare fund, the annual level percentage of payroll contribution rate is
estimated at 36.36% with 21.34% paid directly by the employer.
(d) For public school employees who first worked for a public school reporting unit on or after September 4,
2012, who elect defined contribution, and who participate in the personal healthcare fund, the annual level
percentage of payroll contribution rate is estimated at 30.23% with 15.21% paid directly by the employer.
(e) For public school employees who first worked for a public school reporting unit before July 1, 2010, who
elect defined contribution, and who are enrolled in the health premium subsidy, the annual level percentage of
payroll contribution rate is estimated at 34.06% with 19.04% paid directly by the employer.
(f) For public school employees who first worked for a public school reporting unit before July 1, 2010, who
elect defined contribution, and who participate in the personal healthcare fund, the annual level percentage of
payroll contribution rate is estimated at 30.23% with 15.21% paid directly by the employer.
(g) For public school employees who first worked for a public school reporting unit before July 1, 2010 and who
participate in the personal healthcare fund, the annual level percentage of payroll contribution rate is estimated
at 41.10% with 26.08% paid directly by the employer.
(h) For public school employees who first worked for a public school reporting unit after January 31, 2018 and
who elect to become members of the MPSERS plan, the annual level percentage of payroll contribution rate is
estimated at 36.43% with 21.41% paid directly by the employer.
(3) In addition to the employer payments described in subsection (2), the employer shall pay the applicable
contributions to the Tier 2 plan, as determined by the public school employees retirement act of 1979, 1980 PA 300,
MCL 38.1301 to 38.1437.
(4) The contribution rates in subsection (2) reflect an amortization period of 13 years for 2024-2025. The public
school employees’ retirement system board shall notify each district and intermediate district by February 28 of
each fiscal year of the estimated contribution rate for the next fiscal year.

Sec. 147a. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-
2025 an amount not to exceed $100,000,000.00 for payments to participating districts. A participating district
that receives money under this subsection shall use that money solely for the purpose of offsetting a portion of
the retirement contributions owed by the district for the fiscal year in which it is received. The amount allocated
to each participating district under this subsection is based on each participating district’s percentage of the total
statewide payroll for all participating districts for the immediately preceding fiscal year. As used in this
subsection, “participating district ” means a district that is a reporting unit of the Michigan public school
employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300,
MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system
for the applicable fiscal year.
(2) In addition to the allocation under subsection (1), from the state school aid fund money appropriated under
section 11, there is allocated an amount not to exceed $414,900,000.00 for 2024-2025 and an amount not to exceed
$336,200,000.00 for 2025 -2026 for payments to participating districts and intermediate districts and from the
general fund money appropriated under section 11, there is allocated an amount not to exceed $100,000.00 for
2024-2025 and 2025 -2026 for payments to participating district libra ries. The amount allocated to each
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participating entity under this subsection is based on each participating entity ’s reported quarterly payroll for
members that became tier 1 before February 1, 2018 for the current fiscal year. A participating entity that receives
money under this subsection shall use that money solely for the purpose of offsetting a portion of the normal cost
contribution rate. As used in this subsection:
(a) “District library ” means a district library established under the district library establishment act,
1989 PA 24, MCL 397.171 to 397.196.
(b) “Participating entity” means a district, intermediate district, or district library that is a reporting unit of
the Michigan public school employees ’ retirement system under the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’
retirement system for the applicable fiscal year.
(3) In addition to the allocations under subsections (1) and (2), from the state school aid fund money
appropriated in section 11, there is allocated for 2024 -2025 only an amount not to exceed $11,939,000.00 for
payments to participating intermediate districts and participating district libraries. A participating intermediate
district or participating district library shall use that money solely for the purpose of offsetting a portion of the
retirement contributions owed by the participating intermediate di strict or participating district library for the
fiscal year in which it is received. The amount allocated to each participating intermediate district or participating
district library under this subsection is calculated as follows:
(a) For each participating intermediate district, $11,912,000.00 multiplied by each participating intermediate
district’s percentage of the total statewide payroll for all participating intermediate districts for the immediately
preceding fiscal year.
(b) For each participating district library, $27,000.00 multiplied by each participating district library ’s
percentage of the total statewide payroll for all participating district libraries for the immediately preceding fiscal
year.
(c) As used in this subsection:
(i) “Participating district library” means a district library that is a reporting unit of the Michigan public school
employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300,
MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system
for the applicable fiscal year.
(ii) “Participating intermediate district” means an intermediate district that is a reporting unit of the Michigan
public school employees ’ retirement system under the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees ’
retirement system for the applicable fiscal year.
(4) In addition to the allocations under subsections (1), (2), and (3), from the state school aid fund money
appropriated in section 11, there is allocated for 2024-2025 an amount not to exceed $598,000,000.00 for payments
to participating entities. The amount allocated to each participating entity under this subsection is based on each
participating entity’s percentage of the total statewide payroll for all participating entities for the immediately
preceding fiscal year. The amount allocated in this subse ction represents an amount to effectively reduce each
participating entity’s unfunded actuarial accrued liability from 20.96% to an estimated 15.21% of covered payroll.
It is the intent of the legislature that the allocation under this subsection be used to support student mental
health, school safety, the educator workforce, and academic interventions.
(a) As used in this subsection:
(i) “District library ” means a district library established under the district library establishment act,
1989 PA 24, MCL 397.171 to 397.196.
(ii) “Participating entity” means a district, intermediate district, district library, or community college that is
a reporting unit of the Michigan public school employees ’ retirement system under the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public
school employees’ retirement system for the applicable fiscal year.

Sec. 147c. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026
an amount not to exceed $1,536,500,000.00 for payments to districts and intermediate districts that are
participating entities of the Michigan public school employees’ retirement system. In addition, from the general
fund money appropriated in section 11, there is allocated for 2025-2026 an amount not to exceed $300,000.00 for
payments to district libraries that are participating entities of the Michigan public school e mployees’ retirement
system. All of the following apply to funding under this subsection:
(a) Except as otherwise provided in this subdivision, for 2025 -2026, the amounts allocated under this
subsection are estimated to provide an average MPSERS rate cap per pupil amount for districts of $1,100.00,
which represents an average increase of $362.0 0 per pupil compared to the immediately preceding state fiscal
year.
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(b) Payments made under this subsection are equal to the difference between the unfunded actuarial accrued
liability contribution rate as calculated under section 41 of the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1341, as calcul ated without taking into account the maximum employer rate of 20.96%
included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the
maximum employer rate of 20.96% included in section 41 of the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1341.
(c) The amount allocated to each participating entity under this subsection is based on each participating
entity’s proportion of the total covered payroll for the immediately preceding fiscal year for the same type of
participating entities. A participating entity that receives funds under this subsection shall use the funds solely
for the purpose of retirement contributions as specified in subdivision (d).
(d) Each participating entity receiving funds under this subsection shall forward an amount equal to the
amount allocated under subdivision (c) to the retirement system in a form, manner, and time frame determined
by the retirement system.
(e) Funds allocated under this subsection should be considered when comparing a district ’s growth in total
state aid funding from 1 fiscal year to the next.
(f) By not later than December 20 of each fiscal year for which funding is allocated under this subsection, the
department shall publish and post on its website an estimated MPSERS rate cap per pupil for each district.
(2) As used in this section:
(a) “District library ” means a district library established under the district library establishment act,
1989 PA 24, MCL 397.171 to 397.196.
(b) “MPSERS rate cap per pupil” means an amount equal to the quotient of the district ’s payment under this
section divided by the district’s pupils in membership.
(c) “Participating entity ” means, except as otherwise provided in this subdivision, a district, intermediate
district, or district library that is a reporting unit of the Michigan public school employees ’ retirement system
under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports
employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
(d) “Retirement system ” means the Michigan public school employees ’ retirement system under the public
school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 147e. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-
2025 an amount not to exceed $71,600,000.00, and there is allocated for 2025 -2026 an amount not to exceed
$118,400,000.00 for payments to participating entities.
(2) The payment to each participating entity under this section is the sum of the amounts under this subsection
as follows:
(a) An amount equal to the contributions made by a participating entity for the additional contribution made
to a qualified participant’s Tier 2 account in an amount equal to the contribution made by the qualified participant
not to exceed 3% of the qualified participant ’s compensation as provided for under section 131(6) of the public
school employees retirement act of 1979, 1980 PA 300, MCL 38.1431.
(b) Beginning October 1, 2017, an amount equal to the contributions made by a participating entity for a
qualified participant who is only a Tier 2 qualified participant under section 81d of the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1381d, not to exceed 4%, and, beginning February 1, 2018, not to
exceed 1%, of the qualified participant’s compensation.
(c) An amount equal to the increase in employer normal cost contributions under section 41b(2) of the public
school employees retirement act of 1979, 1980 PA 300, MCL 38.1341b, for a member that was hired after
February 1, 2018 and chose to participate in Tier 1, compared to the employer normal cost contribution for a
member under section 41b(1) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341b.
(3) As used in this section:
(a) “Member” means that term as defined under the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1301 to 38.1437.
(b) “Participating entity” means a district, intermediate district, or community college that is a reporting unit
of the Michigan public school employees ’ retirement system under the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’
retirement system for the applicable fiscal year.
(c) “Qualified participant ” means that term as defined under section 124 of the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1424.

Sec. 152a. (1) As required by the court in the consolidated cases known as Adair v State of Michigan, 486 Mich
468 (2010), from the state school aid fund money appropriated in section 11, there is allocated for 2025 -2026 an
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amount not to exceed $41,000,500.00 to be used solely for the purpose of paying necessary costs related to the
state-mandated collection, maintenance, and reporting of data to this state. From this allocation, $3,000,000.00
is allocated for costs associate d with collecting data necessary to provide reporting to tribal governments on the
status of students affiliated with their particular tribe and data necessary to determine student participation in
federal programs funded under 20 USC 7401 to 7546 and part icipation in federal programs funded under the
Johnson-O’Malley Supplemental Indian Education Program Modernization Act, Public Law 115-404.
(2) From the allocation in subsection (1), the department shall make payments to districts and intermediate
districts in an equal amount per pupil based on the total number of pupils in membership in each district and
intermediate district. The department shall not make any adjustment to these payments after the final
installment payment under section 17b is made.

Sec. 152b. (1) From the general fund money appropriated under section 11, there is allocated an amount not
to exceed $1,000,000.00 for 2025-2026 to reimburse actual costs incurred by nonpublic schools in complying with
a health, safety, or welfare requirement mandated by a law or administrative rule of this state.
(2) By January 1 of each applicable fiscal year, the department shall publish a form for reporting actual costs
incurred by a nonpublic school in complying with a health, safety, or welfare requirement mandated under state
law containing each health, safety, or welfare requirement mandated by a law or administrative rule of this state
applicable to a nonpublic school and with a reference to each relevant provision of law or administrative rule for
the requirement. The form must be posted on the department’s website in electronic form.
(3) By June 30 of each applicable fiscal year, a nonpublic school seeking reimbursement for actual costs
incurred in complying with a health, safety, or welfare requirement under a law or administrative rule of this
state during each applicable school year must submit a completed form described in subsection (2) to the
department. This section does not require a nonpublic school to submit a form described in subsection (2). A
nonpublic school is not eligible for reimbursement under this section if the nonpu blic school does not submit the
form described in subsection (2) in a timely manner.
(4) By August 15 of each applicable fiscal year, the department shall distribute funds to each nonpublic school
that submits a completed form described under subsection (2) in a timely manner. The superintendent shall
determine the amount of funds to be paid to each nonpublic school in an amount that does not exceed the nonpublic
school’s actual costs in complying with a health, safety, or welfare requirement under a law or administrative rule
of this state. The superintendent shall calculate a nonpublic school’s actual cost in accordance with this section.
(5) If the funds allocated under this section are insufficient to fully fund payments as otherwise calculated
under this section, the department shall distribute funds under this section on a prorated or other equitable basis
as determined by the superintendent.
(6) The department may review the records of a nonpublic school submitting a form described in subsection (2)
only for the limited purpose of verifying the nonpublic school’s compliance with this section. If a nonpublic school
does not allow the department to review records under this subsection, the nonpublic school is not eligible for
reimbursement under this section.
(7) The funds appropriated under this section are for purposes that are incidental to teaching and the provision
of educational services to nonpublic school students; that are noninstructional in nature; that do not constitute a
primary function or element necessary for a nonpublic school ’s existence, operation, and survival; that do not
involve or result in excessive religious entanglement; and that are intended for the public purpose of ensuring the
health, safety, and welfare of the children in nonpublic schools and to reimburse nonpubli c sc hools for costs
described in this section.
(8) Funds allocated under this section are not intended to aid or maintain any nonpublic school, support the
attendance of any student at a nonpublic school, employ any person at a nonpublic school, support the attendance
of any student at any location whe re instruction is offered to a nonpublic school student, or support the
employment of any person at any location where instruction is offered to a nonpublic school student.
(9) For purposes of this section, “actual cost” means the hourly wage for the employee or employees performing
a task or tasks required to comply with a health, safety, or welfare requirement under a law or administrative
rule of this state identified by the department under subsection (2) and is to be calculated in accordance with the
form published by the department under subsection (2), which must include a detailed itemization of costs. The
nonpublic school shall not charge more than the hourly wage of its lowest-paid employee capable of performing a
specific task regardless of whether that individual is available and regardless of who actually performs a specific
task. Labor costs under this subsection must be estimated and charged in increments of 15 minutes or more, with
all partial time increments rounded down. When calculating costs under subsection (4), fee components must be
itemized in a manner that expresses both the hourly wage and the number of hours charged. The nonpublic school
may not charge any applicable labor charge amount to cover or partially cover the cost of health or fringe benefits.
A nonpublic school shall not charge any overtime wages in the calculation of labor costs.
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(10) Training fees, inspection fees, and criminal background check fees are considered actual costs in complying
with a health, safety, or welfare requirement under a law or administrative rule of this state.
(11) The funds allocated under this section for 2025 -2026 are a work project appropriation, and any
unexpended funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to continue
to reimburse nonpublic schools for actual costs incurred in complying with a health, safety, or welfare requirement
mandated by a law or administrative rule of this state. The estimated completion date of the work project is
September 30, 2027.
(12) The department shall reimburse nonpublic schools for actual costs incurred in complying with health,
safety, or welfare requirements under a law or administrative rule of this state from 2017 -2018 through 2022 -
2023 using work project funds or, if thos e funds are insufficient to fund reimbursements under this subsection,
from the allocation under subsection (1).

Sec. 161a. If a court determines that a person intentionally violated section 411a of the Michigan penal code,
1931 PA 328, MCL 750.411a, by making a false report of the commission of a crime described in section 6(6)(e)
knowing the report to be false for the purpose of having a pupil counted in membership in a district under section
6(6)(e), as part of the restitution ordered under section 30 of chapter XIIA of 1939 PA 288, MCL 712A.30,
section 16, 44, or 76 of the crime victim’s rights act, 1985 PA 87, MCL 780.766, 780.794, and 780.826, or section 1a
of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.1a, the court may order the person to pay
the pupil’s district of residence an amount that is not more than the state school aid that district would have
received attributable to the pupil if the pupil had been counted in membership in the pupil’s district of residence.

Sec. 164k. If the department receives a report that a district or intermediate district is violating any of the
following requirements, and the department confirms the violation, the department shall withhold 5% of the
payment the district is eligible to r eceive under section 22b, or 5% of the payment the intermediate district is
eligible to receive under section 81, as applicable, for as long as the district or intermediate district is out of
compliance:
(a) A district or intermediate district shall ensure that all food made available to a student in the breakfast or
lunch program complies with all federal rules and regulations related to school meals.
(b) To the extent practicable under federal regulations, a district or intermediate district shall require each
student household to complete the child nutrition and education benefits application, as provided by the
department, for free and reduced -price school meals regardless of whether the district or intermediate district
opts to provide universal breakfast or lunch.
(c) For pupil membership count days after the fall 2025 count, a district or intermediate district shall not
provide a financial incentive to students for attending pupil membership count day.
(d) A district or intermediate district shall ensure that student survey questions and results are made available
to the public, posted on the district’s or intermediate district’s website, and that parents and legal guardians are
notified of the survey. As used in this subsection, “survey” includes any survey from the district or intermediate
district or from the local, state, or federal government.
(e) Beginning with the fiscal year ending September 30, 2026, if a district is not using a curriculum from the
department’s evidence -based curriculum list required under section 1280f of the revised school code,
MCL 380.1280f, the district must provide a notification to all parents or legal guardians of students in grades K
to 5 receiving instruction with that curriculum that includes all of the following:
(i) A statement informing parents or legal guardians that the curriculum used by the district is not evidence -
based or not aligned to state standards, which could negatively impact student academic outcomes.
(ii) A statement explaining why the district is not using a curriculum that is evidence-based or aligned to state
standards.
(iii) A plan, including a projected timeline, for when a new curriculum will be adopted that is evidence -based
and aligned to state standards.

Sec. 164l. (1) Not later than 30 days after the enactment of the amendatory act that added this section, the
legislature shall provide to the responsible entity and the state budget director a list of legislatively directed
spending items, which may be referred to in thi s section as grants or direct appropriation grants, funded under
the amendatory act that added this section consistent with house or senate rules and this section. The list must
include all information and documents pertaining to the funded items as publicly disclosed in accordance with
house or senate rules and this section.
(2) Notwithstanding any other conditions or requirements for direct appropriation grants, the responsible
entity shall perform, at a minimum, at least all of the following activities to administer the grants described in
subsection (1):
(a) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The
responsible entity shall not execute a grant agreement unless all necessary documentation has been submitted
and reviewed.
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(b) Verify to the extent possible that a grant recipient is a not -for-profit entity and will use funds as publicly
disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the
residents of this state.
(c) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the
grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The
responsible entity may deduct the co st of background checks and any other efforts performed as part of this
verification from the amount of the designated grant award.
(d) Disburse the grant money per the grant disbursement schedule in the executed grant agreement on a
reimbursement basis after the grantee has provided sufficient documentation, as determined by the responsible
entity, to verify that expenditures were made in accordance with the project purpose.
(e) If the state budget director determines that information provided by the grantee does not meet the
disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to
this state, or that the grant will create a conflict of interest, the responsible entity shall not release the grant
money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There
is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator ’s immediate family
members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and
the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending
item.
(3) An executed grant agreement under this section between the responsible entity and a grant recipient must
include at least all of the following:
(a) All necessary identifying information for the grant recipient, including any tax and financial information
necessary for the responsible entity to administer grant money under this section.
(b) A description of the project for which the grant money will be expended, including tentative timelines and
the estimated budget. Project budget must include how all grant money will be used and must indicate if any
grant money will be provided to a thi rd party or subrecipient. The responsible entity shall not reimburse
expenditures that are outside of the project purpose, as stated in the executed grant agreement, from
appropriations under the amendatory act that added this section. The grantee shall re turn to the state treasury
any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
(c) Unless otherwise specified in the responsible entity’s policy, a requirement that funds appropriated for the
grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of
the amendatory act that added this section.
(d) A requirement for reporting by the grant recipient to the responsible entity and the legislative sponsor that
provides the status of the project and an accounting of all money expended by the grant recipient, as determined
by the responsible entity.
(e) A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money
that is declined, unspent, or otherwise misused.
(f) The documents publicly disclosed under subsection (1).
(4) If appropriate to improve the administration or oversight of a grant described in subsection (1), the
responsible entity may adopt a memorandum of understanding with another state department to perform the
required duties under this section.
(5) A grant recipient shall respond to all reasonable information requests from the responsible entity related
to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to
monitoring, site visits, and audit as d etermined by the responsible entity. The grant agreement required under
this section must include signed assurance by the chief executive officer or other executive officer of the grant
recipient authorized to bind the grant recipient that the requirements of this subsection will be met.
(6) The grant recipient shall expend all grant money awarded and complete all projects not later than
September 30, 2030. If, at that time, any unexpended money remains, the grant recipient shall return that money
to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not
later than June 1, 2026, the responsible entity shall return money associated with the grant to the state treasury.
(7) Any grant money that is awarded to a responsible entity is appropriated in that responsible entity for the
purpose of the intended grant.
(8) Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the
responsible entity shall post a report in a publicly accessible location on its website. The report must list the grant
recipient, project purpose, and location of the project for each grant described in subsection (1), the status of money
allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The responsible
entity shall update the report and post the updated report in a publicly accessible location on its website not later
than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The
responsible entity shall include in the report the most comprehensive information the responsible entity has
available at the time of posting for grants awarded.
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(9) If the state budget office determines that it is more efficient for the state budget office to compile all affected
responsible entities’ information and post a report of the compiled information rather than the report required
under subsection (8) being posted by individual responsible entities, the state budget office may compile that
information across all affected responsible entities and other state departments and post the compiled report and
any updates on the same time schedule as identified in subsection (8).
(10) If the responsible entity reasonably determines that the money allocated for an executed grant agreement
under this section was misused or that use of the money was misrepresented by the grant recipient, the
responsible entity shall not award any addi tional funds under the executed grant agreement and shall refer the
grant for review following internal audit protocols, which may include referral for criminal investigation.
(11) As used in this section, “responsible entity” means the department, the department of lifelong education,
advancement, and potential, a district, an intermediate district, or other person that administers a grant under
this article.

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in this section are
appropriated for community colleges for the fiscal year ending September 30, 2026, from the funds indicated in
this section. The following is a summary of the appropriations in this section and section 201f:
(a) The gross appropriation is $493,032,100.00. After deducting total interdepartmental grants and
intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $493,032,100.00.
(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:
(i) Total federal revenues, $0.00.
(ii) Total local revenues, $0.00.
(iii) Total private revenues, $0.00.
(iv) Total other state restricted revenues, $493,032,100.00.
(v) State general fund/general purpose money, $0.00.
(2) Subject to subsection (3), the amount appropriated for community college operations is $363,570,600.00,
allocated as follows:
(a) The appropriation for Alpena Community College is $6,416,800.00, $6,403,300.00 for operations, $0.00 for
performance funding, and $13,500.00 for costs incurred under the North American Indian tuition waiver.
(b) The appropriation for Bay de Noc Community College is $6,390,000.00, $6,298,000.00 for operations, $0.00
for performance funding, and $92,000.00 for costs incurred under the North American Indian tuition waiver.
(c) The appropriation for Delta College is $16,934,200.00, $16,882,400.00 for operations, $0.00 for performance
funding, and $51,800.00 for costs incurred under the North American Indian tuition waiver.
(d) The appropriation for Glen Oaks Community College is $2,987,000.00, $2,984,100.00 for operations, $0.00
for performance funding, and $2,900.00 for costs incurred under the North American Indian tuition waiver.
(e) The appropriation for Gogebic Community College is $5,439,100.00, $5,399,000.00 for operations, $0.00 for
performance funding, and $40,100.00 for costs incurred under the North American Indian tuition waiver.
(f) The appropriation for Grand Rapids Community College is $21,337,300.00, $21,184,200.00 for operations,
$0.00 for performance funding, and $153,100.00 for costs incurred under the North American Indian tuition
waiver.
(g) The appropriation for Henry Ford College is $25,305,200.00, $25,300,700.00 for operations, $0.00 for
performance funding, and $4,500.00 for costs incurred under the North American Indian tuition waiver.
(h) The appropriation for Jackson College is $14,059,700.00, $14,032,600.00 for operations, $0.00 for
performance funding, and $27,100.00 for costs incurred under the North American Indian tuition waiver.
(i) The appropriation for Kalamazoo Valley Community College is $14,751,300.00, $14,704,400.00 for
operations, $0.00 for performance funding, and $46,900.00 for costs incurred under the North American Indian
tuition waiver.
(j) The appropriation for Kellogg Community College is $11,453,400.00, $11,426,700.00 for operations, $0.00
for performance funding, and $26,700.00 for costs incurred under the North American Indian tuition waiver.
(k) The appropriation for Kirtland Community College is $3,881,400.00, $3,835,100.00 for operations, $0.00
for performance funding, and $46,300.00 for costs incurred under the North American Indian tuition waiver.
(l) The appropriation for Lake Michigan College is $6,427,600.00, $6,408,200.00 for operations, $0.00 for
performance funding, and $19,400.00 for costs incurred under the North American Indian tuition waiver.
(m) The appropriation for Lansing Community College is $36,216,500.00, $36,134,400.00 for operations, $0.00
for performance funding, and $82,100.00 for costs incurred under the North American Indian tuition waiver.
(n) The appropriation for Macomb Community College is $38,251,500.00, $38,160,600.00 for operations, $0.00
for performance funding, and $90,900.00 for costs incurred under the North American Indian tuition waiver.
(o) The appropriation for Mid Michigan Community College is $5,919,500.00, $5,837,000.00 for operations,
$0.00 for performance funding, and $82,500.00 for costs incurred under the North American Indian tuition waiver.
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(p) The appropriation for Monroe County Community College is $5,368,900.00, $5,368,500.00 for operations,
$0.00 for performance funding, and $400.00 for costs incurred under the North American Indian tuition waiver.
(q) The appropriation for Montcalm Community College is $4,035,000.00, $4,033,300.00 for operations, $0.00
for performance funding, and $1,700.00 for costs incurred under the North American Indian tuition waiver.
(r) The appropriation for C.S. Mott Community College is $18,028,100.00, $18,017,800.00 for operations, $0.00
for performance funding, and $10,300.00 for costs incurred under the North American Indian tuition waiver.
(s) The appropriation for Muskegon Community College is $10,403,400.00, $10,359,900.00 for operations,
$0.00 for performance funding, and $43,500.00 for costs incurred under the North American Indian tuition waiver.
(t) The appropriation for North Central Michigan College is $4,110,100.00, $3,947,700.00 for operations, $0.00
for performance funding, and $162,400.00 for costs incurred under the North American Indian tuition waiver.
(u) The appropriation for Northwestern Michigan College is $10,874,500.00, $10,619,800.00 for operations,
$0.00 for performance funding, and $254,700.00 for costs incurred under the North American Indian tuition
waiver.
(v) The appropriation for Oakland Community College is $25,168,400.00, $25,130,000.00 for operations, $0.00
for performance funding, and $38,400.00 for costs incurred under the North American Indian tuition waiver.
(w) The appropriation for Schoolcraft College is $14,997,300.00, $14,972,000.00 for operations, $0.00 for
performance funding, and $25,300.00 for costs incurred under the North American Indian tuition waiver.
(x) The appropriation for Southwestern Michigan College is $7,805,700.00, $7,786,600.00 for operations, $0.00
for performance funding, and $19,100.00 for costs incurred under the North American Indian tuition waiver.
(y) The appropriation for St. Clair County Community College is $8,355,300.00, $8,342,000.00 for operations,
$0.00 for performance funding, and $13,300.00 for costs incurred under the North American Indian tuition waiver.
(z) The appropriation for Washtenaw Community College is $16,276,300.00, $16,257,300.00 for operations,
$0.00 for performance funding, and $19,000.00 for costs incurred under the North American Indian tuition waiver.
(aa) The appropriation for Wayne County Community College is $19,462,800.00, $19,460,300.00 for operations,
$0.00 for performance funding, and $2,500.00 for costs incurred under the North American Indian tuition waiver.
(bb) The appropriation for West Shore Community College is $2,914,300.00, $2,896,700.00 for operations,
$0.00 for performance funding, and $17,600.00 for costs incurred under the North American Indian tuition waiver.
(3) The amount appropriated in subsection (2) for community college operations is $363,570,600.00 and is
appropriated from the state school aid fund.
(4) From the appropriations described in subsection (1), both of the following apply:
(a) Subject to section 207a, the amount appropriated for fiscal year 2025-2026 to offset certain fiscal year 2025-
2026 retirement contributions is $7,189,000.00, appropriated from the state school aid fund.
(b) For fiscal year 2025 -2026, there is allocated an amount not to exceed $19,600,000.00 for payments to
participating community colleges, appropriated from the state school aid fund. A community college that receives
money under this subdivision shall use that money solely for the purpose of offsetting the normal cost contribution
rate.
(5) From the appropriations described in subsection (1), subject to section 207b, the amount appropriated for
payments to community colleges that are participating entities of the retirement system is $89,500,000.00,
appropriated from the state school aid fund.
(6) From the appropriations described in subsection (1), subject to section 207c, the amount appropriated for
renaissance zone tax reimbursements is $2,200,000.00, appropriated from the state school aid fund. Each
community college receiving funds in this subsection shall accrue these payments to its institutional fiscal year
ending June 30, 2026.

Sec. 201f. For fiscal year 2025-2026 only, from the appropriations described in section 201(1), $10,972,500.00
is appropriated from the state school aid fund for a 1 -time performance funding payment. Funds appropriated
under this section, subject to conditions described in sections 217b and 230, must be distributed as follows:
(a) Alpena Community College, $271,100.00.
(b) Bay de Noc Community College, $178,200.00.
(c) Delta College, $493,300.00.
(d) Glen Oaks Community College, $91,200.00.
(e) Gogebic Community College, $139,500.00.
(f) Grand Rapids Community College, $685,500.00.
(g) Henry Ford College, $750,900.00.
(h) Jackson College, $364,800.00.
(i) Kalamazoo Valley Community College, $433,700.00.
(j) Kellogg Community College, $324,400.00.
(k) Kirtland Community College, $146,500.00.
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(l) Lake Michigan College, $192,200.00.
(m) Lansing Community College, $924,700.00.
(n) Macomb Community College, $1,090,600.00.
(o) Mid Michigan Community College, $193,900.00.
(p) Monroe County Community College, $206,600.00.
(q) Montcalm Community College, $122,300.00.
(r) C.S. Mott Community College, $491,700.00.
(s) Muskegon Community College, $298,600.00.
(t) North Central Michigan College, $144,300.00.
(u) Northwestern Michigan College, $289,400.00.
(v) Oakland Community College, $816,500.00.
(w) Schoolcraft College, $503,200.00.
(x) Southwestern Michigan College, $210,400.00.
(y) St. Clair County Community College, $258,200.00.
(z) Washtenaw Community College, $664,900.00.
(aa) Wayne County Community College, $600,900.00.
(bb) West Shore Community College, $85,000.00.

Sec. 201i. (1) Not later than 30 days after the enactment of the amendatory act that added this section, the
legislature shall provide to the responsible entity and the state budget director a list of legislatively directed
spending items, which may be ref erred to in this section as grants or direct appropriation grants, funded under
the amendatory act that added this section consistent with house or senate rules and this section. The list must
include all information and documents pertaining to the funded items as publicly disclosed in accordance with
house or senate rules and this section.
(2) Notwithstanding any other conditions or requirements for direct appropriation grants, the responsible
entity shall perform, at a minimum, at least all of the following activities to administer the grants described in
subsection (1):
(a) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The
responsible entity shall not execute a grant agreement unless all necessary documentation has been submitted
and reviewed.
(b) Verify to the extent possible that a grant recipient is a not -for-profit entity and will use funds as publicly
disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the
residents of this state.
(c) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the
grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The
responsible entity may deduct the co st of background checks and any other efforts performed as part of this
verification from the amount of the designated grant award.
(d) Disburse the grant money per the grant disbursement schedule in the executed grant agreement on a
reimbursement basis after the grantee has provided sufficient documentation, as determined by the responsible
entity, to verify that expenditures were made in accordance with the project purpose.
(e) If the state budget director determines that information provided by the grantee does not meet the
disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to
this state, or that the grant will cr eate a conflict of interest, the responsible entity shall not release the grant
money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There
is not a conflict of interest if the sponsoring legislator c ertifies that the sponsoring legislator’s immediate family
members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and
the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending
item.
(3) An executed grant agreement under this section between the responsible entity and a grant recipient must
include at least all of the following:
(a) All necessary identifying information for the grant recipient, including any tax and financial information
necessary for the responsible entity to administer grant money under this section.
(b) A description of the project for which the grant money will be expended, including tentative timelines and
the estimated budget. Project budget must include how all grant money will be used and must indicate if any
grant money will be provided to a thi rd party or subrecipient. The responsible entity shall not reimburse
expenditures that are outside of the project purpose, as stated in the executed grant agreement, from
appropriations under the amendatory act that added this section. The grantee shall re turn to the state treasury
any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
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(c) Unless otherwise specified in the responsible entity’s policy, a requirement that funds appropriated for the
grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of
the amendatory act that added this section.
(d) A requirement for reporting by the grant recipient to the responsible entity and the legislative sponsor that
provides the status of the project and an accounting of all money expended by the grant recipient, as determined
by the responsible entity.
(e) A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money
that is declined, unspent, or otherwise misused.
(f) The documents publicly disclosed under subsection (1).
(4) If appropriate to improve the administration or oversight of a grant described in subsection (1), the
responsible entity may adopt a memorandum of understanding with another state department to perform the
required duties under this section.
(5) A grant recipient shall respond to all reasonable information requests from the responsible entity related
to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to
monitoring, site visits, and audit as d etermined by the responsible entity. The grant agreement required under
this section must include signed assurance by the chief executive officer or other executive officer of the grant
recipient authorized to bind the grant recipient that the requirements of this subsection will be met.
(6) The grant recipient shall expend all grant money awarded and complete all projects not later than
September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money
to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not
later than June 1, 2026, the responsible entity shall return money associated with the grant to the state treasury.
(7) Any grant money that is awarded to a responsible entity is appropriated in that responsible entity for the
purpose of the intended grant.
(8) Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the
responsible entity shall post a report in a publicly accessible location on its website. The report must list the grant
recipient, project purpose, and location of the project for each grant described in subsection (1), the status of money
allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The responsible
entity shall update the report and post the updated report in a publicly accessible location on its website not later
than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The
responsible entity shall include in the report the most comprehensive information the responsible entity has
available at the time of posting for grants awarded.
(9) If the state budget office determines that it is more efficient for the state budget office to compile all affected
responsible entities’ information and post a report of the compiled information rather than the report required
under subsection (8) being posted by individual responsible entities, the state budget office may compile that
information across all affected responsible entities and other state departments and post the compiled report and
any updates on the same time schedule as identified in subsection (8).
(10) If the responsible entity reasonably determines that the money allocated for an executed grant agreement
under this section was misused or that use of the money was misrepresented by the grant recipient, the
responsible entity shall not award any addi tional funds under the executed grant agreement and shall refer the
grant for review following internal audit protocols, which may include referral for criminal investigation.
(11) As used in this section, “responsible entity” means the department of lifelong education, advancement,
and potential, a community college, or other person that administers a grant under this article.

Sec. 206. (1) Except for the funds appropriated in section 201(4)(b), the funds appropriated in section 201 are
appropriated for community colleges with fiscal years ending June 30, 2026 and must be paid out of the state
treasury and distributed by the state treasurer to the respective community colleges in 11 monthly installments
on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2025. Each
community college shall accrue its July and August 2026 payments to its institutional fiscal year ending June 30,
2026.
(2) The funds appropriated in section 201(4)(b) are appropriated for community colleges with fiscal years
ending June 30, 2026 and must be distributed to the respective community colleges in quarterly installments on
the sixteenth of each November, Februar y, May, and August. Each community college shall accrue its
August 2026 payments to its institutional fiscal year ending June 30, 2026.

Sec. 207a. The following apply to the allocation of the appropriations described in section 201(4):
(a) A community college that receives money under section 201(4) shall use that money solely for the purpose
of offsetting a portion of the retirement contributions owed by the college for that fiscal year.
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(b) The amount allocated to each participating community college under section 201(4)(a) must be based on
each college’s percentage of the total covered payroll for all community colleges that are participating colleges in
the immediately preceding fiscal year.
(c) The amount allocated to each participating community college under section 201(4)(b) must be based on
each college’s reported quarterly payroll for members for the current fiscal year.

Sec. 207b. All of the following apply to the allocation of the appropriation described in section 201(5) for
payments to community colleges that are participating entities of the retirement system:
(a) The amount of a payment under section 201(5) must be the difference between the unfunded actuarial
accrued liability contribution rate as calculated under section 41 of the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1341, as ca lculated without taking into account the maximum employer rate of
15.21% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,
and the maximum employer rate of 15.21% under section 41 of the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1341.
(b) The amount allocated to each community college under section 201(5) must be based on each community
college’s percentage of the total covered payroll for all community colleges that are participating colleges in the
immediately preceding fiscal year. A community college that receives funds under this subdivision shall use the
funds solely for the purpose of retirement contributions under section 201(5).
(c) Each participating college that receives funds under section 201(5) shall forward an amount equal to the
amount allocated under subdivision (b) to the retirement system in a form and manner determined by the
retirement system.

Sec. 207c. All of the following apply to the allocation of the appropriations described in section 201(6) to
community colleges described in section 12(3) of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692:
(a) The amount allocated to each community college under section 201(6) for fiscal year 2025 -2026 must be
based on that community college ’s proportion of total revenue lost by community colleges as a result of the
exemption of property taxes levied in 2025 under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681
to 125.2696.
(b) The appropriations described in section 201(6) must be made to each eligible community college within
60 days after the department of treasury certifies to the state budget director that it has received all necessary
information to properly determine the amounts payable to each eligible community college under section 12 of the
Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.

Sec. 210. (1) Recognizing the critical importance of education in strengthening Michigan ’s workforce, each
community college shall explore ways of increasing collaboration and cooperation with 4 -year universities,
particularly in the areas related to training, instruction, and program articulation.
(2) Recognizing the central role of community colleges in responding to local employment needs and challenges,
community colleges shall develop and continue efforts to collaborate with local employers and students to identify
local employment needs and strategies to meet them.
(3) Community colleges shall collaborate with each other on innovations to identify and meet local employment
needs.
(4) Community colleges shall work with universities to develop equivalency standards of core college courses
and identify equivalent courses offered by postsecondary institutions.

Sec. 210b. By March 1 of each year, the Michigan Community College Association and the Michigan
Association of State Universities shall submit a report to the senate and house appropriations subcommittees on
community colleges, the senate and house fiscal agencies, the department of lifelong education, advancement, and
potential, and the state budget director on the activities and programs focused on improving transfer student
outcomes since March 1 of the previous year, including all of the following:
(a) The direct transferability of mathematics gateway courses between and among community colleges and
universities.
(b) The implementation of MiTransfer pathways.
(c) The progress on increasing participation in MiTransfer pathways among community colleges and public
universities.
(d) The implementation of the Michigan Transfer Network at mitransfer.org.
(e) A progress report on the implementation of the Michigan transfer agreement.
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Sec. 210d. (1) Community colleges shall work with public universities in this state to implement statewide
reverse transfer agreements to increase the number of students that are awarded credentials of value upon
completion of the necessary credits. These statewide agreements must enable students who have earned a
significant number of credits at a community college and transferred to a baccalaureate -granting institution
before completing a degree to transfer the credits earned at the baccalaureate institution back to the community
college in order to be awarded a credential of value.
(2) Each community college receiving an appropriation under section 201 shall consult with the department of
lifelong education, advancement, and potential at least once an academic year on the policies and services the
institution implements regarding transfer credits and transfer students.

Sec. 212. Community college districts are encouraged to evaluate and pursue efficiency and cost-containment
measures that maximize state funding. Community colleges shall identify practices that increase efficiencies,
including, but not limited to, establishing joint ventures, consolidating services, utilizing program collaborations,
maximizing educational benefits through optimal class sizes and frequency of course offerings, eliminating low -
enrollment and high -cost instructional programs, using self -insurance, practicing energy conservation, and
utilizing group purchasing. Community colleges shall also review proposed capital outlay projects to increase
coordination and utilization of new facilities, renovation projects, and technology improvements.

Sec. 216e. (1) Payments under section 201 for performance funding must be made only to a community college
that certifies to the state budget director by the last business day of August each year that it complies with the
following:
(a) The institutional best practice described in subdivision (c).
(b) One or more of the institutional best practices described in subdivisions (d) to (g).
(c) The community college accepts the Michigan Transfer Agreement, partners with the Michigan Transfer
Network, and promotes clear transfer pathways for interested students by doing all of the following:
(i) Has a policy to help transfer or accept associate degrees from other accredited Michigan postsecondary
education institutions.
(ii) Publishes the policy described in subparagraph ( i) on the institution’s website in an easily accessible way
and in admissions materials.
(iii) Provides publicly available information on the Michigan Transfer Network, applicable transfer pathways,
and financial aid available to transfer students, at no cost to the student.
(iv) Begins negotiations to increase the number of reverse transfer agreements or articulation agreements and
reports on the progress toward completing the agreements to the state budget director by the last business day in
February.
(d) The community college requires all students to receive an academic degree or certificate map that outlines
required course sequencing, program and institution requirements, declared minor program academic
requirements, and a recommended timeline within which courses should be taken and in which specific semester
or term in order to satisfy all program requirements to allow the student to graduate on time.
(e) The community college provides non-credit-bearing developmental or remedial courses at a reduced cost to
students.
(f) The community college provides each degree - or certificate -seeking student with a designated, trained
academic advisor to support student retention, persistence, and completion. The community college shall require
students to meet with their academic advisor at least once per semester or term.
(g) The community college provides employees during business hours to assist prospective and current
students in completing the Free Application for Federal Student Aid.
(2) The state budget director shall implement uniform reporting requirements to ensure that a community
college receiving a payment under section 201 for performance funding has satisfied the institutional best
practices requirements of this section. The s tate budget director has the sole authority to determine if a
community college has met the requirements of this section. Information reported by a community college to the
state budget director under this subsection must also be reported to the house and senate appropriations
subcommittees on higher education and the house and senate fiscal agencies.
(3) If a community college fails to comply with the certification requirements of this section, the state treasurer
may withhold the monthly installments under section 206 to the community college until the certification is
completed. If a community college does not comply with the certification requirements described in this section
by the end of the fiscal year, the community college forfeits the amount withheld. Forfeited funds must lapse to
the state school aid fund. The state budget director shall notify the chairs of the house and senate appropriations
subcommittees on higher education at least 10 days before withholding funds from any community college.
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Sec. 217a. (1) Each community college that receives an appropriation in section 201 shall submit all of the
following information in the form and manner specified by the center:
(a) The Michigan community colleges verified data inventory data for the preceding academic year to the center
by the first business day of November of each year as specified in section 217.
(b) Tuition and mandatory fees information as specified in section 217b.
(c) The longitudinal data set to the center as specified in section 219.
(d) The number and type of associate degrees, baccalaureate degrees, and other certificates awarded as
specified in section 219.
(e) The annual independent audit as specified in section 222.
(2) If the state budget director determines that a community college failed to submit any of the information
described in subsection (1) in the form and manner specified by the center, the state treasurer may withhold the
monthly state operations installments described in section 201 from that community college until those data are
submitted. If a community college does not submit any of the information described in subsection (1) by the end
of the fiscal year, the community college forfeits any withheld am ount. The state budget director shall notify the
chairs of the house and senate appropriations subcommittees on community colleges at least 10 days before
withholding funds from any community college.
(3) It is intended that accountability reporting for community colleges will be streamlined through the center.
The state budget director and the center shall work to combine the reporting requirements outlined in this
subsection with the existing Michigan community colleges verified data inventory collection cycle. All of the
following must be reported to the house and senate fiscal agencies and the state budget director:
(a) Each community college’s certification of its compliance with the requirements described in subsections (4)
and (5).
(b) The reporting and certification requirements of subsections (6) and (7) and section 217b.
(4) No later than the last business day of November of each year, each community college that receives an
appropriation in section 201 shall make all of the information described in subdivisions (a) to (g) available through
a link on its website homepage, subject to subdivision (h), as follows:
(a) The annual operating budget and subsequent budget revisions.
(b) A link to the most recent “Michigan Community College Data Inventory Report”.
(c) General fund revenue and expenditure projections for the current fiscal year and the next fiscal year.
(d) A listing of all debt service obligations, detailed by project, anticipated payment of each project, and total
outstanding debt for the current fiscal year.
(e) Links to all of the following for the community college:
(i) The current collective bargaining agreement for each bargaining unit.
(ii) Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long -term
care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or
employee of the community college.
(iii) Audits and financial reports for the most recent fiscal year for which they are available.
(iv) A copy of the board of trustees resolution regarding compliance with best practices for the local strategic
value component described in section 230(2).
(f) A map that includes the boundaries of the community college district.
(g) A prominent link to the financial aid website created under section 260.
(h) For statewide consistency and public visibility, community colleges shall use the icon badge provided by
the department of technology, management, and budget consistent with the icon badge developed by the
department of education for K -12 school districts. It must appear on the front of each community college ’s
homepage. The size of the icon may be reduced to 150 x 150 pixels.
(5) No later than the last business day of November of each year, each community college that receives an
appropriation in section 201 shall develop, maintain, and update a “campus safety information and resources ”
link, prominently displayed on the homepage of its website, that links to a section of the community college ’s
website containing, at a minimum, all of the following information:
(a) Emergency contact numbers for police, fire, health, and other services.
(b) Hours, locations, telephone numbers, and email contacts for campus public safety offices and title IX offices.
(c) A list of safety and security services provided by the community college, including transportation, escort
services, building surveillance, anonymous tip lines, and other available security services.
(d) The community college’s policies applicable to minors on community college property.
(e) A directory of resources available at the community college or in the surrounding community for students
or employees who are survivors of sexual assault or sexual abuse.
(f) An electronic copy of “A Resource Handbook for Campus Sexual Assault Survivors, Friends and Family”,
published in 2018.
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(g) Campus security policies and crime statistics pursuant to the student right -to-know and campus security
act, Public Law 101 -542, 104 Stat 2381. Information must include all material prepared pursuant to the public
information reporting requirements und er the crime awareness and campus security act of 1990, title II of the
student right-to-know and campus security act, Public Law 101-542, 104 Stat 2381.
(6) No later than the last business day of November of each year, each community college that receives an
appropriation in section 201 shall report to the house and senate appropriations subcommittees on community
colleges, the house and senate fiscal agencies, and the state budget director its annual title IX report, also known
as the student sexual misconduct report, issued by the title IX coordinator, as required under the federal campus
SaVE act of 2013, Public Law 113-4, section 304, 127 Stat 54, 89-92 (2013).
(7) No later than the last business day of November of each year, each community college that receives an
appropriation in section 201 shall certify that the community college complies with federal regulations under
title IX, as required by the United States Department of Education, including, but not limited to, the following:
(a) Use of medical experts that do not have an actual or apparent conflict of interest.
(b) Issuance of title IX reports to complainants and respondents that are not divergent.
(c) Notification of resources to each individual who reports having experienced sexual assault by a member of
the community college.

Sec. 217b. (1) Each community college that receives an appropriation in section 201 shall report to the center
by the last business day of August of each year the tuition and mandatory fees paid by a full -time in-district
student and a full -time out-of-district student as established by the community college governing board for the
current academic year. This report should also include the annual cost of tuition and fees based on a full -time
course load of 30 credits. This report must also specify the amoun t that tuition and fees have increased for the
community college from the prior academic year. Each community college shall also report any revisions to the
reported current academic year tuition and mandatory fees adopted by the community college governing board to
the center within 15 days of being adopted. The center shall provide this information and any revisions to the
house and senate fiscal agencies and the state budget director.
(2) Each community college that receives an appropriation in section 201 shall certify to the state budget
director by the first business day of November of each year that its board will not adopt an increase in tuition and
fee rates for in-district students for the academic year that is greater than the tuition restraint described in this
subsection. For the academic year 2025-2026, the tuition restraint level is equal to the greater of 4.5% or $227.00.
For the academic year 2026 -2027, the tuition restrain t level is equal to the greater of 4.0% or $199.00. It is
intended that in the next fiscal year, the tuition restraint rate will be adjusted only for the subsequent academic
year. As used in this subsection:
(a) “Fee” means any board-authorized fee that will be paid by more than 1/2 of all in-district students at least
once during their enrollment at a community college. A community college increasing a fee that applies to a
specific subset of students or courses shall provide sufficient information to prove that the increase applied to that
subset will not cause the increase in the average amount of board -authorized total tuition and fees paid by in -
district students in the academic year to exceed the limit established in this section.
(b) “Tuition and fee rate ” means the average of full -time rates paid by a majority of students in each class,
based on an unweighted average of the rates authorized by the community college board and actually charged to
students, deducting any uniformly rebated or refunded amounts, for the 2 semesters with the highest levels of
full-time equated in-district enrollment during the academic year.
(3) Community colleges that exceed the tuition and fee rate cap described in subsection (2) are not eligible to
receive payments under section 201f for 1 -time performance funding payments for fiscal year 2025 -2026. The
state budget director shall implement uniform reporting requirements to ensure that a community college
receiving a payment under section 201f for 1 -time performance funding has satisfied the tuition restraint
requirements of this section. The state budget director has the sole authority to determine if a community college
has met the requirements of this section. Information reported by a community college to the state budget director
under this subsection must also be reported to the house and senate appropriations subcommittees on community
colleges and the house and senate fiscal agencies.
(4) Notwithstanding any other provision of this act, the legislature may at any time adjust appropriations for
a community college that adopts an increase in tuition and fee rates for in-district students that exceeds the rate
cap established in subsection (2).

Sec. 217c. (1) Not later than December 1 of each year, each community college or federally recognized tribal
college that, in the current or previous academic year, serves or has served as an authorizing body shall submit a
report to the house and senate a ppropriations subcommittees on higher education, the house and senate fiscal
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agencies, the state budget director, and the department of education containing, at a minimum, all of the following
information, as applicable:
(a) A list of all of the schools currently authorized, and the following information for each school:
(i) The year in which the school was authorized.
(ii) The location of each school.
(iii) The owner of the property at which each school is located and the physical buildings utilized by the school,
as applicable.
(b) A list identifying any schools that were closed or lost their authorization in the current or previous academic
year.
(c) A description of any new contracts for the operation of a public school academy that will operate as the
successor to a public school academy that is currently being operated under a contract issued by another
authorizing body that is currently performing in the bottom 5% of schools.
(d) The academic performance of each school currently authorized, including whether a school is identified by
the department of education as a partnership school. If a school is identified as a partnership school under this
subdivision, the authorizing bod y shall include a description of corrective actions in the school ’s partnership
agreement, the duration of the partnership agreement, and an assessment of progress toward improvement.
(e) The total enrollment of each school at the time of submission, the grades served, and student turnover rate
compared to the previous academic year, as applicable.
(f) Aggregated student enrollment data for students with an individualized education program as well as the
total amount of special education cost reimbursements received by each school during the school ’s most recently
completed fiscal year.
(g) The total number of fees, reimbursements, contributions, or charges permitted under section 502(6) of the
revised school code, 1976 PA 451, MCL 380.502, that are assigned to each school currently authorized in a single
academic year.
(h) The names of the members of the board of directors of each school currently authorized, the date that each
member of each board was appointed, and a description of the methodology used by the authorizing body to select
members for the boards of directors for each school currently authorized by the authorizing body.
(i) The name of the applicant who applied and received approval to organize each currently authorized school.
(j) The list of contracts and length of their terms, with education service providers associated with each school
currently authorized pursuant to section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable.
The contracts described in this subdivision include, but are not limited to, those described in section 502(2)(d) of
the revised school code, 1 1976 PA 451, MCL 380.502.
(k) Activities undertaken by each authorizing body to ensure that the board of directors of each school complies
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246, and laws prohibiting conflicts of interest.
(l) A description of the activities undertaken by the authorizing body to meet the functions of an authorizing
body under section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable.
(m) A financial report of the authorizing body’s use of fees, reimbursements, contributions, or charges collected
or retained under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502. This report must include
all of the following, at a minimum:
(i) The total amount of fees collected or retained under section 502(6) of the revised school code, 1976 PA 451,
MCL 380.502, by the authorizing body for the authorizing body’s most recent fiscal year.
(ii) The amount of funds reported under subparagraph ( i) that were spent on compensation for faculty and
staff employed primarily to meet the functions of an authorizing body. For the purpose of this subparagraph, an
employee is presumed to be primarily employed to meet the functions of an authorizing body if that employee
spends more than 50% of the employee’s time on those activities.
(iii) The number of positions, organized by job title, associated with expenditures reported under
subparagraph (ii).
(iv) The amount of funds reported under subparagraph (i) that were spent on contractual services to meet the
functions of an authorizing body.
(v) The amount of funds reported under subparagraph (i) that were spent on other overhead costs to meet the
functions of an authorizing body.
(vi) The amount of funds reported under subparagraph ( i) that were transferred to another operating unit
within the community college or federally recognized tribal college.
(vii) The amount of funds reported under subparagraph (i) that were spent on activities other than functioning
as an authorizing body, including a list of those activities and the amount associated with each activity.
(n) An executive summary section that provides relevant summary data for reporting requirements under
subdivisions (a) to (m).
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(2) A report submitted under this section must be in a format that meets accessibility standards for viewing
on the internet under the Americans with disabilities act of 1990, Public Law 101-336.
(3) A report submitted under this section must be published and updated through a link on the homepage of
the institution’s website.
(4) In addition to the reporting requirements under this section, each authorizing body that receives an
appropriation under section 201 shall adopt a facilities policy ensuring that any structures or other property
vacated by a public school academy that ceases operation not contribute to blight in the surrounding neighborhood
or community in which the school had previously operated.
(5) As used in this section, “authorizing body” means that term as defined in section 501 of the revised school
code, 1976 PA 451, MCL 380.501.

Sec. 217f. It is the intent of the legislature that taxpayer funds appropriated under this article are to be used
to educate community college students and continue maintenance of community college buildings and other
assets. The goal of the legislature is that taxpayer funds not be used excessively for administration. Therefore, a
community college that receives an appropriation under this article shall not spend more than 10% of that
appropriation on administration. A sum of money spent in excess of the 1 0% cap described in this section by a
community college results in a forfeiture of an amount equal to 50% of that sum from funds appropriated to that
community college, not to exceed the total amount appropriated to that community college under this article. The
auditor general may investigate allegations of violations of this section. Funds forfeited under this section must
revert, to the extent permitted by law, to the general fund or the state school aid fund. For the purpose of
calculations under this section, the amount spent by a community college on administrative costs does not include
costs associated with staff working in the following roles: teachers, facilities, public safety, technology, research,
instruction, academic support, student services, auxiliary services, or public service.

Sec. 222. Each community college shall have an annual audit of all income and expenditures performed by an
independent auditor and shall furnish the independent auditor ’s management letter and an annual audited
accounting of all general and current funds income and expenditures including audits of college foundations to
the center before November 15 of each year. The center shall provide this information to members of the senate
and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, the auditor
general, the department of labor and economic opportunity, the department of lifelong education, advancement,
and potential, and the state budget director. If a community college fails to furnish the audit materials, the
monthly state operations installments must be withheld from that college until the information is submitted. All
reporting must conform to the requirements set forth in the “2001 Manual for Uniform Financial Reporting,
Michigan Public Community Colleges ”. A community college shall make the information the community college
is required to provide under this section available to the public on its website.

Sec. 229a. Included in the fiscal year 2025-2026 appropriations for the department of technology, management,
and budget are appropriations totaling $38,032,600.00 to provide funding for the state share of costs for previously
constructed capital projects for communi ty colleges. Those appropriations for state building authority rent
represent additional state general fund support for community colleges, and the following is an estimate of the
amount of that support to each community college:
(a) Alpena Community College, $855,000.00.
(b) Bay de Noc Community College, $515,000.00.
(c) Delta College, $2,881,100.00.
(d) Glen Oaks Community College, $380,000.00.
(e) Gogebic Community College, $56,000.00.
(f) Grand Rapids Community College, $2,346,000.00.
(g) Henry Ford College, $1,505,000.00.
(h) Jackson College, $2,044,000.00.
(i) Kalamazoo Valley Community College, $1,942,000.00.
(j) Kellogg Community College, $679,000.00.
(k) Kirtland Community College, $225,000.00.
(l) Lake Michigan College, $966,000.00.
(m) Lansing Community College, $757,000.00.
(n) Macomb Community College, $4,682,200.00.
(o) Mid Michigan Community College, $1,615,000.00.
(p) Monroe County Community College, $1,540,000.00.
(q) Montcalm Community College, $446,000.00.
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(r) C.S. Mott Community College, $3,103,000.00.
(s) Muskegon Community College, $982,000.00.
(t) North Central Michigan College, $646,000.00.
(u) Northwestern Michigan College, $1,787,000.00.
(v) Oakland Community College, $0.00.
(w) Schoolcraft College, $2,232,000.00.
(x) Southwestern Michigan College, $822,500.00.
(y) St. Clair County Community College, $718,000.00.
(z) Washtenaw Community College, $1,676,000.00.
(aa) Wayne County Community College, $1,895,800.00.
(bb) West Shore Community College, $736,000.00.

Sec. 230. (1) Subject to subsection (4), money included in the appropriations for community college operations
under section 201 for performance funding and allocated under section 201f for 1 -time performance funding
payments is distributed based on the following formula:
(a) Allocated proportionate to fiscal year 2024-2025 base appropriations, 30%.
(b) Based on a weighted student contact hour formula as provided for in the 2016 recommendations of the
performance indicators task force, 30%.
(c) Based on the performance improvement as provided for in the 2016 recommendations of the performance
indicators task force and based on data provided by the center, 10%.
(d) Based on the performance completion number as provided for in the 2016 recommendations of the
performance indicators task force, 10%.
(e) Based on the performance completion rate as provided for in the 2016 recommendations of the performance
indicators task force and based on data provided by the center, 10%.
(f) Based on administrative costs, 5%.
(g) Based on the local strategic value component, as developed in cooperation with the Michigan Community
College Association and described in subsection (2), 5%.
(2) Money included in the appropriations for community college operations under section 201(2) for local
strategic value is allocated only to each community college that certifies to the state budget director, through a
board of trustees resolution on or before October 15, 2025, that the college has met 4 out of 5 best practices listed
in each category described in subsection (3). The resolution must provide specifics as to how the community college
meets each best practice measure within each category. One-third of funding available under the strategic value
component is allocated to each category described in subsection (3). Amounts distributed under local strategic
value must be on a proportionate basis to each college ’s fiscal year 2024 -2025 operations funding. Payments to
community colleges that qualify for local strategic value funding must be distributed with the November
installment payment described in section 206.
(3) For purposes of subsection (2), the following categories of best practices reflect functional activities of
community colleges that have strategic value to the local communities and regional economies:
(a) For Category A, economic development and business or industry partnerships, the following:
(i) The community college has active partnerships with local employers including hospitals and health care
providers.
(ii) The community college provides customized on-site training for area companies, employees, or both.
(iii) The community college supports entrepreneurship through a small business assistance center or other
training or consulting activities targeted toward small businesses.
(iv) The community college supports technological advancement through industry partnerships, incubation
activities, or operation of a Michigan technical education center or other advanced technology center.
(v) The community college has active partnerships with local or regional workforce and economic development
agencies.
(b) For Category B, educational partnerships, the following:
(i) The community college has active partnerships with regional high schools, intermediate school districts,
and career-tech centers to provide instruction through dual enrollment, concurrent enrollment, direct credit,
middle college, or academy programs.
(ii) The community college hosts, sponsors, or participates in enrichment programs for area K -12 students,
such as college days, summer or after-school programming, or Science Olympiad.
(iii) The community college provides, supports, or participates in programming to promote successful
transitions to college for traditional age students, including grant programs such as talent search, upward bound,
or other activities to promote college readiness in area high schools and community centers.
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(iv) The community college provides, supports, or participates in programming to promote successful
transitions to college for new or reentering adult students, such as adult basic education, a high school equivalency
test preparation program and testing, or recruiting, advising, or orientation activities specific to adults. As used
in this subparagraph, “high school equivalency test preparation program” means that term as defined in section 4.
(v) The community college has active partnerships with regional 4 -year colleges and universities to promote
successful transfer, such as articulation, 2+2, or reverse transfer agreements or operation of a university center.
(c) For Category C, community services, the following:
(i) The community college provides continuing education programming for leisure, wellness, personal
enrichment, or professional development.
(ii) The community college operates or sponsors opportunities for community members to engage in activities
that promote leisure, wellness, cultural or personal enrichment such as community sports teams, theater or
musical ensembles, or artist guilds.
(iii) The community college operates public facilities to promote cultural, educational, or personal enrichment
for community members, such as libraries, computer labs, performing arts centers, museums, art galleries, or
television or radio stations.
(iv) The community college operates public facilities to promote leisure or wellness activities for community
members, including gymnasiums, athletic fields, tennis courts, fitness centers, hiking or biking trails, or natural
areas.
(v) The community college promotes, sponsors, or hosts community service activities for students, staff, or
community members.
(4) Payments for performance funding under section 201 and for 1-time performance funding payments under
section 201f must be made to a community college only if that community college actively participates in the
Michigan Transfer Network sponsored by the Michigan Association of Collegiate Registrars and Admissions
Officers and submits timely updates, including updated c ourse equivalencies at least every 6 months, to the
Michigan Transfer Network. The state budget director shall determine if a community college has not satisfied
this requirement. The state budget director may withhold payments for performance funding unde r section 201
and 1-time performance funding under section 201f until a community college is in compliance with this
subsection.

Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed in this section are
appropriated for higher education for the fiscal year ending September 30, 2026, from the funds indicated in this
section. The following is a summary of the appropriations in this section and sections 236d, 236e, and 236j:
(a) The gross appropriation is $2,336,912,000.00. After deducting total interdepartmental grants and
intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $2,336,912,000.00.
(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:
(i) Total federal revenues, $3,200,000.00.
(ii) Total local revenues, $0.00.
(iii) Total private revenues, $0.00.
(iv) Total other state restricted revenues, $850,768,300.00.
(v) State general fund/general purpose money, $1,482,943,700.00.
(c) The totals and subtotals reflected in subdivisions (a) and (b) do not include amounts appropriated under
subsection (7)(d) or (8)(b) to avoid duplicating totals of amounts appropriated in this section and section 236j.
(2) Amounts appropriated for public universities are as follows:
(a) The appropriation for Central Michigan University is $99,466,100.00, $95,226,900.00 for operations, $0.00
for operations increase, $2,558,800.00 for MPSERS support payment, and $1,680,400.00 for costs incurred under
the North American Indian tuition waiver.
(b) The appropriation for Eastern Michigan University is $86,649,200.00, $83,979,800.00 for operations, $0.00
for operations increase, $2,256,500.00 for MPSERS support payment, and $412,900.00 for costs incurred under
the North American Indian tuition waiver.
(c) The appropriation for Ferris State University is $62,221,900.00, $59,816,300.00 for operations, $0.00 for
operations increase, $1,607,300.00 for MPSERS support payment, and $798,300.00 for costs incurred under the
North American Indian tuition waiver.
(d) The appropriation for Grand Valley State University is $98,772,000.00, $97,552,900.00 for operations,
$0.00 for operations increase, $0.00 for MPSERS support payment, and $1,219,100.00 for costs incurred under
the North American Indian tuition waiver.
(e) The appropriation for Lake Superior State University is $16,301,400.00, $14,465,600.00 for operations,
$0.00 for operations increase, $388,700.00 for MPSERS support payment, and $1,447,100.00 for costs incurred
under the North American Indian tuition waiver.
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(f) The appropriation for Michigan State University is $396,845,300.00, $321,516,900.00 for operations, $0.00
for operations increase, $0.00 for MPSERS support payment, $2,508,800.00 for costs incurred under the
North American Indian tuition waiver, $39,096,200.00 for MSU AgBioResearch, and $33,723,400.00 for MSU
Extension.
(g) The appropriation for Michigan Technological University is $56,659,000.00, $54,463,700.00 for operations,
$0.00 for operations increase, $1,463,400.00 for MPSERS support payment, and $731,900.00 for costs incurred
under the North American Indian tuition waiver.
(h) The appropriation for Northern Michigan University is $55,688,200.00, $52,850,300.00 for operations,
$0.00 for operations increase, $1,420,100.00 for MPSERS support payment, and $1,417,800.00 for costs incurred
under the North American Indian tuition waiver.
(i) The appropriation for Oakland University is $73,361,600.00, $73,036,400.00 for operations, $0.00 for
operations increase, $0.00 for MPSERS support payment, and $325,200.00 for costs incurred under the North
American Indian tuition waiver.
(j) The appropriation for Saginaw Valley State University is $34,379,000.00, $34,196,000.00 for operations,
$0.00 for operations increase, $0.00 for MPSERS support payment, and $183,000.00 for costs incurred under the
North American Indian tuition waiver.
(k) The appropriation for University of Michigan – Ann Arbor is $362,507,900.00, $360,607,300.00 for
operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $1,900,600.00 for costs
incurred under the North American Indian tuition waiver.
(l) The appropriation for University of Michigan – Dearborn is $31,708,000.00, $31,513,700.00 for operations,
$0.00 for operations increase, $0.00 for MPSERS support payment, and $194,300.00 for costs incurred under the
North American Indian tuition waiver.
(m) The appropriation for University of Michigan – Flint is $26,884,600.00, $26,403,700.00 for operations,
$0.00 for operations increase, $0.00 for MPSERS support payment, and $480,900.00 for costs incurred under the
North American Indian tuition waiver.
(n) The appropriation for Wayne State University is $227,787,300.00, $227,310,200.00 for operations, $0.00
for operations increase, $0.00 for MPSERS support payment, and $477,100.00 for costs incurred under the North
American Indian tuition waiver.
(o) The appropriation for Western Michigan University is $125,246,700.00, $121,231,800.00 for operations,
$0.00 for operations increase, $3,257,500.00 for MPSERS support payment, and $757,400.00 for costs incurred
under the North American Indian tuition waiver.
(3) The amount appropriated in subsection (2) for public universities is $1,754,478,200.00, appropriated from
the following:
(a) State school aid fund, $643,168,300.00.
(b) State general fund/general purpose money, $1,111,309,900.00.
(4) The amount appropriated for Michigan public school employees’ retirement system reimbursement is $0.00.
(5) The amount appropriated for state and regional programs is $322,100.00, appropriated from general
fund/general purpose money and allocated as follows:
(a) Higher education database modernization and conversion, $200,000.00.
(b) Midwestern Higher Education Compact, $122,100.00.
(6) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks program is
$2,691,500.00, appropriated from general fund/general purpose money and allocated as follows:
(a) Select student support services, $1,956,100.00.
(b) Michigan college/university partnership program, $586,800.00.
(c) Morris Hood, Jr. educator development program, $148,600.00.
(7) Subject to subsection (8), the amount appropriated for grants and financial aid is $469,500,000.00, allocated
as follows:
(a) Tuition incentive program, $122,300,000.00.
(b) Children of veterans and officer’s survivor tuition grant programs, $2,000,000.00.
(c) Project GEAR-UP, $3,200,000.00.
(d) Michigan achievement scholarships, $300,000,000.00. From this amount, up to $10,000,000.00 may be used
to award skills scholarships under section 248a.
(e) Michigan reconnect, $42,000,000.00.
(8) The money appropriated in subsection (7) for grants and financial aid is appropriated from the following:
(a) Federal revenues under the United States Department of Education, Office of Elementary and Secondary
Education, GEAR-UP program, $3,200,000.00.
(b) Postsecondary scholarship fund, $300,000,000.00.
(c) State general fund/general purpose money, $166,300,000.00.
(d) At the close of the fiscal year, state general fund/general purpose money appropriated in subsection (7) for
grants and scholarships that is unspent must be deposited into the postsecondary scholarship fund created in
section 236j.
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(9) For fiscal year 2025 -2026 only, in addition to the allocation under subsection (4), from the appropriations
described in subsection (1), there is allocated an amount not to exceed $7,600,000.00 for payments to participating
public universities, appropriated from the state school aid fund. A public university that receives money under
this subsection shall use that money solely for the purpose of offsetting the normal cost contribution rate. As used
in this subsection, “participating public universities ” means public universities that are a reporting unit of the
Michigan public school employees ’ retirement system under the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1301 to 38.1437, and that pay contributions to the Michigan public school employees ’
retirement system for the state fiscal year.

Sec. 236c. In addition to the funds appropriated for fiscal year 2025-2026 in section 236, appropriations to the
department of technology, management, and budget in the act providing general appropriations for fiscal year
2025-2026 for state building authority rent, totaling an estimated $142,153,900.00, provide funding for the state
share of costs for previously constructed capital projects for state universities. These appropriations for state
building authority rent represent additional state general fun d support provided to public universities, and the
following is an estimate of the amount of that support to each public university:
(a) Central Michigan University, $12,914,000.00.
(b) Eastern Michigan University, $6,022,000.00.
(c) Ferris State University, $9,546,000.00.
(d) Grand Valley State University, $8,614,000.00.
(e) Lake Superior State University, $2,229,000.00.
(f) Michigan State University, $16,598,000.00.
(g) Michigan Technological University, $5,521,000.00.
(h) Northern Michigan University, $9,735,900.00.
(i) Oakland University, $11,245,000.00.
(j) Saginaw Valley State University, $7,820,000.00.
(k) University of Michigan - Ann Arbor, $14,068,000.00.
(l) University of Michigan - Dearborn, $10,725,000.00.
(m) University of Michigan - Flint, $6,057,000.00.
(n) Wayne State University, $10,072,000.00.
(o) Western Michigan University, $10,987,000.00.

Sec. 236d. (1) In addition to the funds appropriated under section 232(2) for university operations, for fiscal
year 2025 -2026 only, there is appropriated an amount not to exceed $50,114,100.00 from the state general
fund/general purpose money for 1-time operations increase payments. These funds are intended to be used for the
same purposes as the funds appropriated under section 236(2) for university operations.
(2) From the amount appropriated under subsection (1), each university is allocated the following:
(a) Central Michigan University, $2,885,000.00.
(b) Eastern Michigan University, $2,544,200.00.
(c) Ferris State University, $1,812,200.00.
(d) Grand Valley State University, $2,955,400.00.
(e) Lake Superior State University, $438,300.00.
(f) Michigan State University, $9,740,500.00.
(g) Michigan Technological University, $1,650,000.00.
(h) Northern Michigan University, $1,601,100.00.
(i) Oakland University, $2,212,700.00.
(j) Saginaw Valley State University, $1,036,000.00.
(k) University of Michigan – Ann Arbor, $10,924,800.00.
(l) University of Michigan – Dearborn, $954,700.00.
(m) University of Michigan – Flint, $799,900.00.
(n) Wayne State University, $6,886,500.00.
(o) Western Michigan University, $3,672,800.00.
(3) In addition to the funds appropriated in section 236(2) for MSU AgBioResearch, for fiscal year 2025 -2026
only, there is appropriated an amount not to exceed $1,184,400.00 from the state general fund/general purpose
money for MSU AgBioResearch.
(4) In addition to the funds appropriated in section 236(2) for MSU Extension, for fiscal year 2025 -2026 only,
there is appropriated an amount not to exceed $1,021,700.00 from the state general fund/general purpose money
for MSU Extension.
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Sec. 236e. (1) For fiscal year 2025 -2026 only, from the general fund/general purpose money appropriated in
section 236(1), $50,000,000.00 is allocated for the purpose of sunsetting the state competitive scholarship and
state tuition grant programs. The allocation in this section must be distributed in the same manner as funds are
distributed for state competitive scholarships under section 251 and state tuition grants under section 252.
(2) The funds allocated under this section for fiscal year 2025-2026 are a work project appropriation, and any
unexpended funds remaining at the end of fiscal year 2025 -2026 are carried forward into fiscal year 2026 -2027,
and any unexpended funds remaining at the end of fiscal year 2026-2027 are carried forward into fiscal year 2027-
2028, and any unexpended funds remaining at the end of fiscal year 2027 -2028 are carried forward into fiscal
year 2028 -2029. The purpose of the work project is to support remain ing students in the state competitive
scholarship program and the state tuition grant program in this state. The estimated completion date of the work
project is September 30, 2029.

Sec. 236j. (1) The postsecondary scholarship fund is created in the department of treasury for the purpose of
providing scholarship awards to eligible students who attend eligible postsecondary educational institutions in
this state, as provided in subsection (5).
(2) The state treasurer may receive money or other assets from any source for deposit into the postsecondary
scholarship fund. The state treasurer shall direct the investment of the postsecondary scholarship fund. The state
treasurer shall credit to the postsecondary scholarship fund interest and earnings from postsecondary scholarship
fund investments.
(3) Money in the postsecondary scholarship fund at the close of the fiscal year must remain in the
postsecondary scholarship fund and not lapse to the general fund.
(4) The department of treasury is the administrator of the postsecondary scholarship fund for auditing
purposes.
(5) Money must be expended from the postsecondary scholarship fund only for the purpose of providing
Michigan achievement scholarship awards to eligible students who attend eligible postsecondary educational
institutions in this state and for other purpose s described in this section. From the funds appropriated in
section 236(7) for the Michigan achievement scholarship, the department of lifelong education, advancement, and
potential may use up to $10,000,000.00 annually for the purposes of outreach programs to raise awareness of the
Michigan achievement scholarship and other state scholarship programs allocated in section 236(7). The
department of lifelong education, advancement, and potential shall ensure that state scholarships are well
publicized and tha t high school students are provided information on the availability of financial aid. The
department of lifelong education, advancement, and potential may receive and expend funds received from outside
sources for scholarships, marketing, or other purposes related to Michigan state scholarships. The department of
lifelong education, advancement, and potential shall provide the necessary funding and staff to fully operate the
programs.
(6) For the fiscal year ending September 30, 2026, $300,000,000.00 of ongoing funding is deposited into the
postsecondary scholarship fund from the following:
(a) State school aid fund, $200,000,000.00.
(b) State general fund/general purpose money, $100,000,000.00.
(7) It is the intent of the legislature that the postsecondary scholarship fund serves as the primary funding
source of the Michigan achievement scholarship. To ensure the Michigan achievement scholarship provides
ongoing supports for students, it is the intent of the legislature to increase annual deposits into the postsecondary
scholarship fund u ntil the fully implemented costs of the Michigan achievement scholarship are deposited
annually into the postsecondary scholarship fund.
(8) In addition to the appropriations in section 236, if the amount of general fund money allocated in
section 236(7)(a), (b), (d), or (e) is not sufficient to fully fund 1 or more of those awards, there is appropriated from
the postsecondary scholarship fund the amount necessary to fully fund those awards. The state budget director
shall provide written notification to the house and senate appropriations subcommittee on higher education and
the house and senate fiscal agencies prior to any additional appropriation described in this subsection.
(9) In addition to the deposit to the postsecondary scholarship fund described in subsection (6), for the fiscal
year ending September 30, 2025 only, an amount not to exceed $80,000,000.00 from the unspent and unreserved
state school aid fund balances appropriated under section 11, as recorded as part of the state book-closing process
for the 2024-2025 fiscal year, is deposited into the postsecondary scholarship fund.

Sec. 236s. (1) Not later than 30 days after the enactment of the amendatory act that added this section, the
legislature shall provide to the responsible entity and the state budget director a list of legislatively directed
spending items, which may be ref erred to in this section as grants or direct appropriation grants, funded under
the amendatory act that added this section consistent with house or senate rules and this section. The list must
include all information and documents pertaining to the funded items as publicly disclosed in accordance with
house or senate rules and this section.
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(2) Notwithstanding any other conditions or requirements for direct appropriation grants, the responsible
entity shall perform, at a minimum, at least all of the following activities to administer the grants described in
subsection (1):
(a) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The
responsible entity shall not execute a grant agreement unless all necessary documentation has been submitted
and reviewed.
(b) Verify to the extent possible that a grant recipient is a not -for-profit entity and will use funds as publicly
disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the
residents of this state.
(c) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the
grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The
responsible entity may deduct the co st of background checks and any other efforts performed as part of this
verification from the amount of the designated grant award.
(d) Disburse the grant money per the grant disbursement schedule in the executed grant agreement on a
reimbursement basis after the grantee has provided sufficient documentation, as determined by the responsible
entity, to verify that expenditures were made in accordance with the project purpose.
(e) If the state budget director determines that information provided by the grantee does not meet the
disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to
this state, or that the grant will create a conflict of interest, the responsible entity shall not release the grant
money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There
is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator ’s immediate family
members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and
the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending
item.
(3) An executed grant agreement under this section between the responsible entity and a grant recipient must
include at least all of the following:
(a) All necessary identifying information for the grant recipient, including any tax and financial information
necessary for the responsible entity to administer grant money under this section.
(b) A description of the project for which the grant money will be expended, including tentative timelines and
the estimated budget. Project budget must include how all grant money will be used and must indicate if any
grant money will be provided to a thi rd party or subrecipient. The responsible entity shall not reimburse
expenditures that are outside of the project purpose, as stated in the executed grant agreement, from
appropriations under the amendatory act that added this section. The grantee shall re turn to the state treasury
any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
(c) Unless otherwise specified in the responsible entity’s policy, a requirement that funds appropriated for the
grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of
the amendatory act that added this section.
(d) A requirement for reporting by the grant recipient to the responsible entity and the legislative sponsor that
provides the status of the project and an accounting of all money expended by the grant recipient, as determined
by the responsible entity.
(e) A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money
that is declined, unspent, or otherwise misused.
(f) The documents publicly disclosed under subsection (1).
(4) If appropriate to improve the administration or oversight of a grant described in subsection (1), the
responsible entity may adopt a memorandum of understanding with another state department to perform the
required duties under this section.
(5) A grant recipient shall respond to all reasonable information requests from the responsible entity related
to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to
monitoring, site visits, and audit as d etermined by the responsible entity. The grant agreement required under
this section must include signed assurance by the chief executive officer or other executive officer of the grant
recipient authorized to bind the grant recipient that the requirements of this subsection will be met.
(6) The grant recipient shall expend all grant money awarded and complete all projects not later than
September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money
to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not
later than June 1, 2026, the responsible entity shall return money associated with the grant to the state treasury.
(7) Any grant money that is awarded to a responsible entity is appropriated in that responsible entity for the
purpose of the intended grant.
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(8) Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the
responsible entity shall post a report in a publicly accessible location on its website. The report must list the grant
recipient, project purpose, and location of the project for each grant described in subsection (1), the status of money
allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The responsible
entity shall update the report and post the updated report in a publicly accessible location on its website not later
than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The
responsible entity shall include in the report the most comprehensive information the responsible entity has
available at the time of posting for grants awarded.
(9) If the state budget office determines that it is more efficient for the state budget office to compile all affected
responsible entities’ information and post a report of the compiled information rather than the report required
under subsection (8) being posted by individual responsible entities, the state budget office may compile that
information across all affected responsible entities and other state departments and post the compiled report and
any updates on the same time schedule as identified in subsection (8).
(10) If the responsible entity reasonably determines that the money allocated for an executed grant agreement
under this section was misused or that use of the money was misrepresented by the grant recipient, the
responsible entity shall not award any addi tional funds under the executed grant agreement and shall refer the
grant for review following internal audit protocols, which may include referral for criminal investigation.
(11) As used in this section, “responsible entity” means the department of lifelong education, advancement,
and potential, a public university, or other person that administers a grant under this article.

Sec. 241. Subject to sections 241a, 241b, 241c, 241e, 241h, and 244, the funds appropriated in sections 236 and
236d to public universities must be paid out of the state treasury and distributed by the state treasurer to the
respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding
business day, beginning with October 16, 2025. Except for Wayne State University, each institution shall accrue
its July and August 2026 payments to its institutional fiscal year ending June 30, 2026.

Sec. 241a. (1) All public universities shall submit higher education institutional data inventory (HEIDI) data
and associated financial aid program information requested by and in a manner prescribed by the state budget
director. For public universities with fiscal years ending June 30, these data must be submitted to the state budget
director by October 15 of each fiscal year. Public universities with a fiscal year ending September 30 shall submit
preliminary HEIDI data by November 15 and final data by December 15.
(2) It is intended that accountability reporting for public universities will be streamlined through HEIDI. The
state budget director and the center will work to combine the reporting requirements outlined in this subsection
with the existing HEIDI collect ion cycle. All of the following must be reported to the house and senate fiscal
agencies and the state budget director:
(a) Each public university’s certification of its compliance with the requirements described in subsections (4)
and (5).
(b) The reporting requirements described in sections 241b and 241c.
(3) If a public university fails to submit HEIDI data and associated financial aid program information in
accordance with the required reporting schedule, the state treasurer may withhold the monthly operations
installments under section 236 to the public university until those data are submitted. If a public university does
not comply with all of the requirements described in subsections (4) and (5) by the end of the fiscal year, the public
university forfeits the amount withheld. The state budget director shall notify the chairs of the house and senate
appropriations subcommittees on higher education at least 10 days before withholding funds from any public
university.
(4) No later than November 1 each year, a public university shall maintain a public transparency website
available through a link on its website homepage. The website must include all of the following concerning the
public university:
(a) The annual operating budget and subsequent budget revisions.
(b) A summary of current expenditures for the most recent fiscal year for which they are available, expressed
as pie charts in the following 2 categories:
(i) A chart of personnel expenditures, broken into the following subcategories:
(A) Earnings and wages.
(B) Employee benefit costs, including, but not limited to, medical, dental, vision, life, disability, and long-term
care benefits.
(C) Retirement benefit costs.
(D) All other personnel costs.
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(ii) A chart of all current expenditures the public university reported as part of its higher education
institutional data inventory data under subsection (1), broken into the same subcategories in which it reported
those data.
(c) Links to all of the following for the public university:
(i) The current collective bargaining agreement for each bargaining unit.
(ii) Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long -term
care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or
employee of the public university.
(iii) Audits and financial reports for the most recent fiscal year for which they are available.
(d) General fund revenue and expenditure projections for the current fiscal year and the next fiscal year.
(e) A listing of all debt service obligations, detailed by project, anticipated fiscal year payment for each project,
and total outstanding debt for the current fiscal year.
(f) The institution ’s policy regarding the transferability of core college courses between community colleges
and the public university.
(g) A listing of all community colleges that have entered into reverse transfer agreements with the public
university.
(h) A dashboard or report card demonstrating the public university ’s performance in several “best practice”
measures. The dashboard or report card must include at least all of the following for the 3 most recent academic
years for which the data are available:
(i) Enrollment.
(ii) Student retention rate.
(iii) Six-year graduation rates.
(iv) Number of Pell grant recipients and graduating Pell grant recipients.
(v) Geographic origination of students, categorized as in-state, out-of-state, and international.
(vi) Faculty to student ratios and total public university employee to student ratios.
(vii) Teaching load by faculty classification.
(viii) Graduation outcome rates, including employment and continuing education.
(i) An icon badge that provides statewide consistency and public visibility. For this purpose, public universities
shall use the icon badge provided by the department of technology, management, and budget consistent with the
icon badge developed by the department of education for K-12 school districts. It must appear on the front of each
public university’s homepage. The size of the icon may be reduced to 150 x 150 pixels. The font size and style for
this reporting must be consistent with other documents on each public university’s website.
(j) A collection and report of the number and percentage of all enrolled students who complete the Free
Application for Federal Student Aid, broken out by undergraduate and graduate/professional classifications,
reported to the center and posted on its website under the budget transparency icon badge.
(k) The name of the current president, the names of the city and state where the president currently resides,
and the president’s annual salary.
(5) No later than November 1 each year, a public university shall develop, maintain, and update a “campus
safety information and resources” link, prominently displayed on the homepage of its website, to a section of its
website containing, at a minimum, all of the following information:
(a) Emergency contact numbers for police, fire, health, and other services.
(b) Hours, locations, telephone numbers, and email contacts for campus public safety offices and title IX offices.
(c) A list of safety and security services provided by the public university, including transportation, escort
services, building surveillance, anonymous tip lines, and other available security services.
(d) The public university’s policies applicable to minors on university property.
(e) A directory of resources available at the public university or surrounding community for students or
employees who are survivors of sexual assault or sexual abuse.
(f) An electronic copy of “A Resource Handbook for Campus Sexual Assault Survivors, Friends and Family ”,
published in 2018.
(g) Campus security policies and crime statistics pursuant to the student right -to-know and campus security
act, Public Law 101 -542, 104 Stat 2381. Information must include all material prepared pursuant to the public
information reporting requirements und er the crime awareness and campus security act of 1990, title II of the
student right-to-know and campus security act, Public Law 101-542, 104 Stat 2381.

Sec. 241b. (1) No later than November 1 each year, each public university that receives an appropriation in
section 236 shall report its annual security report, also known as the Clery Act Report, as required under 20 USC
1092(f). Each public university sh all include a title IX summary report that includes all of the following
information:
(a) The amounts and descriptions of all fees incurred in title IX-related civil and criminal litigation.
(b) The number of title IX complaints.
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(c) The average length of time for investigation and resolution of title IX complaints.
(d) The aggregate number of title IX cases, investigations, and complaints for each of the categories described
in subparagraphs (i) to (v), subject to subparagraph (vi), as follows:
(i) Cases investigated for less than 15 days.
(ii) Cases investigated for at least 15 days and less than 30 days.
(iii) Cases investigated for at least 30 days and less than 60 days.
(iv) Cases investigated for at least 60 days and less than 90 days.
(v) Cases investigated for 90 days or more.
(vi) If, for any category of cases under subparagraphs ( i) to ( v), there is an aggregate of fewer than 5 cases
investigated, the public university shall not report the aggregate number of cases and instead shall report that
fewer than 5 cases were investigated.
(e) The number of title IX appeals and the resolutions of those appeals.
(f) The number of title IX-related complaints filed by the public university with law enforcement agencies.
(2) No later than November 1 each year, each public university that receives an appropriation in section 236
shall certify all of the following:
(a) The public university complies with federal regulations under title IX, as required by the United States
Department of Education, including, but not limited to, the following:
(i) Use of medical experts that do not have an actual or apparent conflict of interest.
(ii) Issuance of title IX reports to complainants and respondents that are not divergent.
(iii) Notification of resources to each individual who reports having experienced sexual assault by a public
university member.
(iv) Consistent annual training for title IX staff and law enforcement.
(b) The public university provides both of the following:
(i) An in-person sexual misconduct prevention presentation or course for all freshman and incoming transfer
students, which must include contact information for the title IX office of the public university. For a student who
does not have any in -person credit hours on campus, the university may provide the presentation or course
electronically.
(ii) An online or electronic sexual misconduct prevention presentation or course for all students not considered
freshmen or incoming transfer students.
(c) The public university had a third party review its title IX compliance office and related policies and
procedures by the end of the 2018 -2019 academic year. A copy of the third -party review must be transmitted to
the state budget director, the house and senate appropriations subcommittees on higher education, and the house
and senate fiscal agencies. Each public university shall have a third -party review once every 4 years and a copy
of the third-party review must be transmitted to the state budget dire ctor, the house and senate appropriations
subcommittees on higher education, and the house and senate fiscal agencies.
(d) The public university requires that the governing board and the president or chancellor of the public
university receive quarterly reports from their title IX coordinator or title IX office. The report must contain
aggregated data of the number of sexu al misconduct reports that the office received for the academic year, the
types of reports received, including reports received against employees, and a summary of the general outcomes
of the reports and investigations. A member of the governing board may request to review a title IX investigation
report involving a complaint against an employee, and the public university shall provide the report in a manner
it considers appropriate. The public university shall protect the complainant ’s anonymity, and the report must
not contain specific identifying information.
(e) If allegations against an employee are made in more than 1 title IX complaint that resulted in the public
university finding that no misconduct occurred, the public university requires that the title IX officer promptly
notify the president or chancellor and a member of the public university’s governing board in writing and take all
appropriate steps to ensure that the matter is being investigated thoroughly, including hiring an outside
investigator for future cases involving that employee. A third -party title IX investigation under this subdivision
does not prohibit the public university from simultaneously conducting its own title IX investigation through its
own title IX coordinator.
(f) The public university’s president or chancellor and a member of its governing board has reviewed all title IX
reports involving the alleged sexual misconduct of an employee of the public university.
(3) As used in this section, “sexual misconduct ” includes, but is not limited to, intimate partner violence,
nonconsensual sexual conduct, sexual assault, sexual exploitation, sexual harassment, and stalking.

Sec. 241c. (1) No later than the first business day of November each year, each public university that receives
an appropriation in section 236 shall submit the amount of tuition and fees actually charged to a full-time resident
undergraduate student for a cademic year 2025 -2026 as part of the public university ’s higher education
institutional data inventory (HEIDI) data. A public university shall report any revisions for any semester of the
reported academic year to HEIDI within 15 days of being adopted.
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(2) Payments under section 236d must be made only to a public university that certifies to the state budget
director by the first business day of November each year that its board did not adopt an increase in tuition and
fee rates for resident undergraduate students after September 1, 2024 for the 2024-2025 academic year and that
its board will not adopt an increase in tuition and fee rates for resident undergraduate students for the 2025-2026
academic year that is greater than 4.5% or $735.00, whichever is greater. For the academic year 2026-2027, the
tuition and fee restraint rate for resident undergraduate students is an increase of not greater th an 4.0% or
$651.00, whichever is greater. It is the intent of the legislature that in the next fiscal year, the tuition and fee
restraint rate will be adjusted only for the subsequent academic year. As used in this subsection:
(a) “Fee” means any board -authorized fee that will be paid by more than 1/2 of all resident undergraduate
students at least once during their enrollment at a public university, as described in the higher education
institutional data inventory (HEIDI) user manual. A public university increasing a fee that applies to a specific
subset of students or courses shall provide sufficient information to prove that the increase applied to that subset
will not cause the increase in the average amount of board -authorized total tuition and fees paid by resident
undergraduate students in the academic year to exceed the limit established in this subsection.
(b) “Tuition and fee rate ” means the average of full -time rates paid by a majority of students in each
undergraduate class, based on an unweighted average of the rates authorized by the public university board and
actually charged to students, deducting any uniformly rebated or refunded amounts, for the 2 semesters with the
highest levels of full-time equated resident undergraduate enrollment during the academic year, as described in
the higher education institutional data inventory (HEIDI) user manual.
(3) Each public university shall certify to the state budget director by the first business day of November each
year that it complies with all of the following requirements:
(a) The public university participates in reverse transfer agreements described in section 286 with at least
3 community colleges in this state.
(b) The public university does not and will not apply any of the following criteria when determining whether
credits earned outside the public university by a student count toward a degree or certificate program offered by
the public university:
(i) Whether the credits were earned in a dual enrollment program that counted the credits toward high school
graduation requirements.
(ii) Whether the credits were earned in a course that was delivered in a high school classroom, community
college classroom or campus, or another location.
(iii) Whether the credits were earned in a course that was delivered online, in person, or hybrid.
(iv) Whether other students enrolled in the course in which the credits were earned were enrolled in high
school or counted the course toward high school graduation requirements.
(c) The public university actively participates in and submits timely updates to the Michigan Transfer Network
created as part of the Michigan Association of Collegiate Registrars and Admissions Officers transfer agreement.
(4) The state budget director shall implement uniform reporting requirements to ensure that a public
university receiving a payment under section 236d has satisfied the tuition restraint requirements of this section.
The state budget director has the sole authority to determine if a public university has met the requirements of
this section. Information reported by a public university to the state budget director under this subsection must
also be reported to the house and senate appropriations subcommittee s on higher education and the house and
senate fiscal agencies.

Sec. 241e. (1) Payments under section 236 for operations increase must be made only to a public university
that certifies to the state budget director by the last business day of August each year that it complies with the
following:
(a) The institutional best practice described in subdivision (c).
(b) One or more of the institutional best practices described in subdivisions (d) to (g).
(c) The public university accepts the Michigan Transfer Agreement, partners with the Michigan Transfer
Network, and promotes clear transfer pathways for interested students by doing all of the following:
(i) Has a policy to help transfer or accept associate degrees from other accredited Michigan postsecondary
education institutions.
(ii) Publishes the policy described in subparagraph (i) on the institution’s website in an easily accessible way
and in admissions materials.
(iii) Provides publicly available information on the Michigan Transfer Network, applicable transfer pathways,
and financial aid available to transfer students, at no cost to the student.
(iv) Begins negotiations to increase the number of reverse transfer agreements or articulation agreements and
reports on the progress toward completing the agreements to the state budget director by the last business day in
February.
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(d) The public university requires all students to receive an academic degree or certificate map that outlines
required course sequencing, program and institution requirements, declared minor program academic
requirements, and a recommended timeline within which courses should be taken and in which specific semester
or term in order to satisfy all program requirements to allow the student to graduate on time.
(e) The public university provides non -credit-bearing developmental or remedial courses at a reduced cost to
students.
(f) The public university provides each degree - or certificate -seeking student with a designated, trained
academic advisor to support student retention, persistence, and completion. The public university shall require
students to meet with their academic advisor at least once per semester or term.
(g) The public university provides employees during business hours to assist prospective and current students
complete the Free Application for Federal Student Aid.
(2) The state budget director shall implement uniform reporting requirements to ensure that a public
university receiving a payment under section 236 for operations increase has satisfied the institutional best
practices requirements of this section. The state budget director has the sole authority to determine if a public
university has met the requirements of this section. Information reported by a public university to the state
budget director under this subsection must also be reported to the house and senate appropriations subcommittees
on higher education and the house and senate fiscal agencies.
(3) If a public university fails to comply with the certification requirements of this section, the state treasurer
may withhold the monthly installments under section 241 to the public university until the report is submitted.
If a public university does not comply with the certification requirements described in this section by the end of
the fiscal year, the public university forfeits the amount withheld. Forfeited funds must lapse to the fund from
which the funds were appropriated. The state budget director shall notify the chairs of the house and senate
appropriations subcommittees on higher education at least 10 days before withholding funds from any public
university.

Sec. 241h. It is the intent of the legislature that taxpayer funds appropriated under this article are to be used
to educate public university students and continue maintenance of public university buildings and other assets.
The goal of the legislature is that taxpayer funds not be used excessively for administration. Therefore, a public
university that receives an appropriation under this article shall not spend more than 10% of that appropriation
on administration. A sum of money spent in excess of the 10% cap described in this section by a public university
results in a forfeiture of an amount equal to 50% of that sum from funds appropriated to that public university,
not to exceed the total amount appropriated to that public university under this article. The auditor general may
investigate allegations of violations of this section. Funds forfeited under this section must revert, to the extent
permitted by law, to the general fund or the state school aid fund. For the purpose of calculations under this
section, the amount spent by a public university on administrative costs does not include costs associated with
staff working in the following roles: teachers, facilities, public safety, technology, research, instruction, academic
support, student services, auxiliary services, or public service.

Sec. 244. By October 15 of each year, a public university receiving funds in section 236 shall provide its
longitudinal data system data set for the preceding academic year to the center for inclusion in the statewide
P-20 longitudinal data system described in section 94a. If the state budget director finds that a university has not
complied with this section, the state budget director is authorized to withhold the monthly operations installments
provided to that university under section 241 until the state budget director finds that the university has complied
with this section.

Sec. 247. (1) The funds appropriated in section 236 for Michigan reconnect must be distributed and
administered by the department of lifelong education, advancement, and potential pursuant to the Michigan
reconnect grant act, 2020 PA 84, MCL 390.1701 to 390.1709, the Mi chigan reconnect grant recipient act,
2020 PA 68, MCL 390.1711 to 390.1723, and the department’s administrative procedures for Michigan reconnect.
(2) For fiscal year 2025-2026 only, the department of lifelong education, advancement, and potential may use
the funds appropriated in section 236 for Michigan reconnect to support students who are receiving awards under
the temporary “ARP - Michigan reconnect expansion to 21” program described in 2023 PA 119.

Sec. 248. (1) The funds appropriated in section 236 for Michigan achievement scholarships must be distributed
as provided in this section and section 248a, pursuant to the administrative procedures for Michigan achievement
scholarships of the department.
(2) As used in this section:
(a) “Cost of attendance ” means expenses for a student ’s tuition, mandatory fees, and contact hours for the
student’s actual program of study; books, supplies, and equipment required for courses of instruction; housing
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and food costs; transportation expenses; federal student loan fees; miscellaneous expenses, including a reasonable
amount for the documented cost of a personal computer, allowance for child care, or allowance for other dependent
care; costs related to a di sability; costs of obtaining a license, certification, or first professional credential; and
reasonable costs for study abroad programs.
(b) “Department” means the department of lifelong education, advancement, and potential.
(c) “Eligible institution” means a public university that receives an appropriation in section 236, a community
college that receives an appropriation in section 201, a federally recognized tribal college in this state, or an
independent nonprofit college or university in this state as described in section 1 of 1966 PA 313, MCL 390.991.
(d) “Gift aid ” includes federal Pell grants under 20 USC 1070a, tuition incentive program benefits under
section 256, state tuition grants under section 252, awards received for minimum payments awarded in
subsection (4), higher education expenses paid under the Michigan promise zone authority act, 2008 PA 549,
MCL 390.1661 to 390.1679, and all other federal, state, local, or institutional aid in the form of grants,
scholarships, or discounts applied toward tuition and mandatory fees. Gift aid does not include student loans,
work-study awards, qualified withdrawals m ade from education savings accounts to pay higher education
expenses pursuant to the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486, or
higher education expenses paid under the Michigan education trust program pursuant to the Michigan education
trust act, 1986 PA 316, MCL 390.1421 to 390.1442.
(e) “High school equivalency certificate” means that term as defined in section 4.
(f) “Last-dollar payment amount” means 1 of the following:
(i) For a student attending a community college or federally recognized tribal college, an amount equal to the
student’s tuition, mandatory fees, and contact hours for the student ’s actual program of study, minus all gift aid
received by the student.
(ii) For a student attending a public university or an independent nonprofit college or university, or for a
student enrolled in a baccalaureate degree program described in section 121 of the community college act of 1966,
1966 PA 331, MCL 389.121, an amount equal to the student ’s individual cost of attendance, minus all gift aid
received by the student.
(g) “Minimum payment ” means a payment for any eligible cost within the student ’s individual cost of
attendance. The minimum payment must be awarded as a separate payment not included in the student ’s need-
based financial aid. The minimum payment must not be reduced.
(h) “SAI eligible student” means a student who has completed the Free Application for Federal Student Aid
and meets at least 1 of the following:
(i) For awards made during academic year 2023 -2024, has an expected family contribution of $25,000.00 or
less. An individual is considered to have met the requirements of subsection (4) if the individual received the
Michigan achievement scholarship in acade mic year 2023 -2024, was determined to have an expected family
contribution of $25,000.00 or less in academic year 2023-2024, and has completed the Free Application for Federal
Student Aid for the subsequent award cycles.
(ii) For awards made during academic year 2024-2025 or a subsequent academic year, has completed the Free
Application for Federal Student Aid and has a student aid index number of 1 of the following, as applicable:
(A) For a student indicating on the student’s Free Application for Federal Student Aid that the student is the
only member of the student’s household or the student’s parents’ household attending a postsecondary institution
during that academic year, $30,000.00 or less.
(B) For a student indicating on the student’s Free Application for Federal Student Aid that the student is not
the only member of the student ’s household or the student ’s parents ’ household attending a postsecondary
institution during that academic year, the greater of the number described in sub -subparagraph (A) or guidance
determined by the department. For the purposes of this sub-subparagraph, the department, in collaboration with
the state budget office and the house and senate fiscal agencies, may calculate a student aid index number or may
issue administrative guidance for the student aid index eligibility of students with more than 1 member of the
student’s household or the student ’s parents ’ household attending a postsecondary institution during that
academic year. It is intended that the utilization of a student aid index instead of expected family contribution
does not adversely impact the eligibility of students with multiple members of the student’s household or student’s
parents’ household attending postsecondary institutions. It is further intended that the legislature and executive
branch work collaboratively to use Michigan achievement scholarship uptake and other relevant data to establish
a more permanent measure of financial need for the Michigan achievement scholarship for subsequent academic
years.
(3) An individual must meet all of the following criteria each year to be eligible for a Michigan achievement
scholarship awarded under this section:
(a) Maintain residency in this state, as determined for purposes of the Free Application for Federal Student
Aid.
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(b) Have graduated from high school in this state with a diploma or certificate of completion or achieved a high
school equivalency certificate in 2023 or after.
(c) Be a full-time undergraduate student at an eligible institution, as defined by that eligible institution, and
be a first-time enrollee in an eligible institution during the 2023 -2024 academic year, or a subsequent academic
year, within 15 months after high school graduation or attainment of a high school equivalency certificate or have
received a Michigan achievement scholarship in a previous academic year. For the purposes of this subdivision,
participation in a dual enrollment, early coll ege, or other similar program while attending high school does not
disqualify a student from being considered a first-time enrollee.
(d) Maintain satisfactory academic progress, as defined by the eligible institution in which the student is
enrolled.
(e) Not be in default on a federal student loan.
(f) Apply for all available gift aid for each academic year in which the individual applies for a Michigan
achievement scholarship.
(g) For a student who is enrolled at an eligible institution that is a public university or an independent
nonprofit college or university, or who is enrolled in a baccalaureate degree program described in section 121 of
the community college act of 1966, 1966 PA 331, MCL 389.121, at an eligible institution, be an SAI eligible
student.
(4) The amount awarded to an eligible student at an eligible institution must equal 1 of the following, as
applicable:
(a) The amount awarded to an eligible student who is enrolled at an eligible institution that is a community
college or federally recognized tribal college where the student is eligible for that institution ’s in-district tuition
rate must be equal to the sum of the last-dollar payment amount. The amount awarded to an eligible student who
is eligible for a federal Pell grant under 20 USC 1070a must include an additional amount of $1,000.00.
(b) The amount awarded to an eligible student who is enrolled at an eligible institution that is a community
college or federally recognized tribal college where the student is not eligible for that institution ’s in -district
tuition rate must be the lesser of the last -dollar payment amount, or the in -district tuition rate. The amount
awarded to an eligible student who is eligible for a federal Pell grant under 20 USC 1070a must include an
additional amount of $1,000.00.
(c) The amount awarded to an eligible student who is enrolled at an eligible institution that is a public
university or is enrolled in a baccalaureate degree program described in section 121 of the community college act
of 1966, 1966 PA 331, MCL 389.121, at an eligible institution must equal the sum of following:
(i) A minimum payment of $2,500.00.
(ii) The lesser of $3,000.00 or the student’s last-dollar payment amount.
(d) The amount awarded to an eligible student at an eligible institution that is an independent nonprofit college
or university must equal the sum of the following:
(i) A minimum payment of $2,500.00.
(ii) The lesser of $3,000.00 or the student’s last-dollar payment amount.
(e) Money awarded under this subsection for a Michigan achievement scholarship must be paid to the eligible
institution for credit to the student’s account.
(5) Subject to section 248a(3)(f)(i), an eligible student may receive a Michigan achievement scholarship award
under this section or section 248a for a maximum of 5 academic years, not more than 3 of which may be for
attending eligible institutions that are community colleges or federally r ecognized tribal colleges unless the
student is enrolled in a baccalaureate degree program described in section 121 of the community college act of
1966, 1966 PA 331, MCL 389.121. A student may not receive an award under this section and section 248a(3)(f)(i)
during the same academic year.
(6) The department shall work closely with participating institutions to provide the highest level of
participation and ensure that all requirements of the program are met.
(7) From the funds appropriated in section 236(7) for the Michigan achievement scholarships, the department
may not use more than $10,000,000.00 for the purposes of outreach programs to raise awareness of the Michigan
achievement scholarship described in this section and section 248a and shall ensure that Michigan achievement
scholarships are well publicized and that high school students are provided information on the program. The
department may receive and expend funds received from outside sources for scholarships, marketing, or other
purposes related to the Michigan achievement sc holarship. The department shall provide the necessary funding
and staff to fully operate the program.
(8) The department shall convene a workgroup to consider and advise the department on implementing policies
for administering the Michigan achievement scholarship. The workgroup shall include participation from the
Michigan Association of State Universities and its institutional members, the Michigan College Access Network,
the Michigan Community College Association and its institutional members, the Michigan Independent Colleges
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and Universities and its institutional members, and any other interested stakeholders and offices as determined
by the department. The workgroup shall make recommendations on packaging order, packaging structure,
definitions of terms not otherwise defined in statute, and other administrative regulatory requirements as
necessary to implement the Michigan achievement scholarship.
(9) The following reporting obligations apply to the Michigan achievement scholarship program:
(a) By February 15 of each year, the department shall provide a written report, organized by eligible
institution, to the house and senate appropriations subcommittees on higher education, the house and senate
fiscal agencies, and the state budget director that includes the following information for the previous academic
year:
(i) The number of students who qualified for a Michigan achievement scholarship.
(ii) The number of students who received a Michigan achievement scholarship.
(iii) The average number of credits earned by students who received a Michigan achievement scholarship.
(iv) The number of Michigan achievement scholarships that were canceled due to failure to maintain
satisfactory academic progress as described in subsection (3)(d).
(v) The number of Michigan achievement scholarships that were canceled due to a student ceasing attendance
at an eligible institution. The number must not include any known transfers to another eligible institution.
(vi) The number of Michigan achievement scholarships that were canceled due to a student ’s failure to
maintain full-time status.
(vii) The average Michigan achievement scholarship award per student, delineated by sector, including
community colleges, tribal colleges, public universities, independent colleges and universities, and training
institutions. As used in this subparagraph, “training institutions ” means training institutions accepted to
participate in the Michigan achievement scholarship program under section 248a.
(b) Each eligible institution whose students receive awards under this section shall cooperate with the
department in a timely manner to facilitate the creation of the report under subdivision (a).
(10) By April 1 of each year, each eligible institution shall submit a report to the department, the state budget
office, and the house and senate fiscal agencies providing information as to the average amount of institutional
grant aid awarded to full -time first-time undergraduate students for the immediately preceding 2 institution
fiscal years. If the average amount of institutional grant aid awarded to full -time first -time undergraduate
students in fiscal year 2024-2025 is less than the average amount of institutional grant aid awarded to full-time
first-time undergraduate students in fiscal year 2023-2024, the institution shall include in the report a description
of any changes to the institutional financial aid during the 2 immediately preceding fiscal years. An institution’s
report of the average amount of institutional grant aid awarded to full -time first-time undergraduate students
pursuant to this subsection must be consistent with data most recently reported to the Integrated Postsecondary
Education Data System.
(11) For each fiscal year, an eligible institution shall maintain and report its compliance with the following
tuition restraint requirements, as applicable:
(a) For an eligible institution that is a community college, the tuition restraint described in section 217b.
(b) For an eligible institution that is a public university or independent nonprofit college or university, the
tuition restraint described in section 241c.
(12) The state budget director shall implement reporting requirements to ensure that an eligible institution
has satisfied the tuition restraint requirements of this section. The state budget director has the sole authority to
determine if an eligible institution has met the requirements of this section.
(13) If an eligible institution exceeds the applicable tuition restraint level for 2 consecutive years, the state
budget director may consider the institution ineligible for funding under this section in the subsequent academic
year.
(14) If an institution is considered ineligible for funding under this section, the state budget director shall
reevaluate the status of the ineligible institution after 1 academic year.
(15) It is the intent of the legislature that an eligible institution will not make reductive changes to scholarship
or financial aid programs offered by that eligible institution that have the goal or net effect of shifting the cost
burden of those programs to the program described in this section.

Sec. 251. (1) Payments of the amounts included in section 236e for the state competitive scholarship program
must be distributed pursuant to 1964 PA 208, MCL 390.971 to 390.981.
(2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the department of lifelong education, advancement,
and potential shall determine an actual state competitive scholarship award per student, which must be
$1,500.00, that ensures that the aggregate payments for the state competitive scholarship program do not exceed
the appropriation contained in section 236e for the state competitive scholarship program. If the department
determines that insufficient funds are available to establish an award amount equal to $1,500.00, the department
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shall immediately report to the house and senate appropriations subcommittees on higher education, the house
and senate fiscal agencies, and the state budget director regarding the estimated amount of additional funds
necessary to establish a $1,500.00 award amount. For the purpose of determining a student’s financial need under
section 6 of 1964 PA 208, MCL 390.976, the department of lifelong education, advancement, and potential shall
presume that a student who receives a Michigan achievement scholarship under section 248 has no need for a
state competitive scholarship under this section. It is the intent of the legislature that 1964 PA 208, MCL 390.971
to 390.981, will be amended to end competitive scholarship eligibility of students enrolling in college for the first
time after the fiscal year ending on September 30, 2023, as those students may be eligible for the Michigan
achievement scholarship.
(3) The department of lifelong education, advancement, and potential shall implement a proportional
competitive scholarship award level for recipients enrolled less than full-time in a given semester or term.
(4) If the department of lifelong education, advancement, and potential increases the award per eligible
student from that provided in the previous fiscal year, it must not have the effect of reducing the number of
eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the award
must be proportional for all eligible students receiving awards.
(5) Veterans Administration benefits must not be considered in determining eligibility for the award of
scholarships under 1964 PA 208, MCL 390.971 to 390.981.

Sec. 252. (1) The amounts appropriated in section 236e for the state tuition grant program must be distributed
pursuant to 1966 PA 313, MCL 390.991 to 390.997a.
(2) Tuition grant awards must be made to all eligible Michigan residents enrolled in undergraduate degree
programs who are qualified.
(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and subject to subsections (6) and (7), the department
of lifelong education, advancement, and potential shall determine an actual tuition grant award per student,
which must be $3,000.00, that ensures that the aggregate payments for the tuition grant program do not exceed
the appropriation contained in section 236e for the state tuition grant program. If the department determines
that insufficient funds are available to establish an award amount equal to $3,000.00, the department shall
immediately report to the house and senate appropriations subcommittees on higher education, the house and
senate fiscal agencies, and the state budget director regarding the estimated amount of additional funds necessary
to establish a $3,000.00 award amount. If the department determines that sufficient funds are available to
establish an award amount equal to $3,000.00, the department shall immediately report to the house and senate
appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget
director regarding the award amount established and the projected amount of any projected year -end
appropriation balance based on that award amount. By February 18 of each fiscal year, the department shall
analyze the status of award commitments, shall make any necessary adjustments, and shall confirm that those
award commitments will not exceed the appropriation contained in section 236e for the tuition grant program.
The determination and actions must be reported to the state budget director and the house and senate fiscal
agencies no later than the final day of February of each year. If award adjustments are necessary, the students
must be notified of the adjustment by March 4 of each year. Subject to subsection (9), for the purposes of
determining a student’s financial need under 1966 PA 313, MCL 390.991 to 390.997a, the department of lifelong
education, advancement, and potential shall presume that a student who is eligible for the Michigan tuition grant
for the first time during academic year 2024 -2025 or any subsequent year, has no need for a state tuition grant
under this section. It is the intent of the legislature that 1966 PA 313, MCL 390.991 to 390.997a, will be amended
to end t uition grant eligibility of students enrolling in college for the first time after the fiscal year ending on
September 30, 2024, as those students may be eligible for the Michigan achievement scholarship.
(4) The department of lifelong education, advancement, and potential shall continue a proportional tuition
grant award level for recipients enrolled less than full-time in a given semester or term.
(5) If the department of lifelong education, advancement, and potential increases the award per eligible
student from that provided in the previous fiscal year, it must not have the effect of reducing the number of
eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the grant
must be proportional for all eligible students receiving awards for that fiscal year.
(6) The department of lifelong education, advancement, and potential shall not award more than $5,000,000.00
in tuition grants to eligible students enrolled in the same independent nonprofit college or university in this state.
Any decrease in the grant mu st be proportional for all eligible students enrolled in that college or university, as
determined by the department.
(7) The department of lifelong education, advancement, and potential shall not award tuition grants to
otherwise eligible students enrolled in an independent college or university that does not report, in a form and
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manner directed by and satisfactory to the department of lifelong education, advancement, and potential, by
October 31 of each year, all of the following:
(a) The number of students in the most recently completed academic year who in any academic year received
a state tuition grant at the reporting institution and successfully completed a program or graduated.
(b) The number of students in the most recently completed academic year who in any academic year received
a state tuition grant at the reporting institution and took a remedial education class.
(c) The number of students in the most recently completed academic year who in any academic year received
a Pell grant at the reporting institution and successfully completed a program or graduated.
(8) By February 1 of each year, each independent college and university participating in the tuition grant
program shall report to the house and senate appropriations subcommittees on higher education, the house and
senate fiscal agencies, and the state bu dget director on its efforts to develop and implement sexual assault
response training for the institution ’s title IX coordinator, campus law enforcement personnel, campus public
safety personnel, and any other campus personnel charged with responding to o n-campus incidents, including
information on sexual assault response training materials and the status of implementing sexual assault response
training for institutional personnel.
(9) A student who received a scholarship under this section prior to the academic year 2024-2025 may continue
to receive a tuition grant award under this section provided that the student meets all other criteria required for
the receipt of a tuition grant award.

Sec. 254. The sums appropriated in sections 236 and 236e for the state competitive scholarship, tuition
incentive, tuition grant, Michigan reconnect, and Michigan achievement scholarship programs must be paid out
of the state treasury and must be distributed to the respective institutions under a quarterly payment system as
follows:
(a) For the state competitive scholarship and tuition grant programs, 50% must be paid at the beginning of
the state’s first fiscal quarter, 30% during the state ’s second fiscal quarter, 10% during the state ’s third fiscal
quarter, and 10% during the state’s fourth fiscal quarter.
(b) For the tuition incentive program, Michigan reconnect, and Michigan achievement scholarship, 65% must
be paid at the beginning of the state’s first fiscal quarter, and 35% during the state’s second fiscal quarter.

Sec. 256. (1) The funds appropriated in section 236 for the tuition incentive program must be distributed as
provided in this section and pursuant to the administrative procedures for the tuition incentive program of the
department of lifelong education, advancement, and potential.
(2) As used in this section:
(a) “Phase I” means the first part of the tuition incentive program defined as the academic period of 80 semester
or 120 term credits, or less, leading to an associate degree or certificate. Students must be enrolled in a certificate
or associate degree program and taking classes within the program of study for a certificate or associate degree.
Tuition will not be covered for courses outside of a certificate or associate degree program.
(b) “Phase II” means the second part of the tuition incentive program that provides assistance in the third and
fourth year of 4-year degree programs.
(c) “Department” means the department of lifelong education, advancement, and potential.
(d) “High school equivalency certificate” means that term as defined in section 4.
(3) An individual must meet the following basic criteria and financial thresholds to be eligible for tuition
incentive program benefits:
(a) To be eligible for phase I, an individual must meet all of the following criteria:
(i) Be less than 20 years of age at the time the individual graduates from high school with a diploma or
certificate of completion or achieves a high school equivalency certificate or, for students attending a 5-year middle
college approved by the Michigan d epartment of education, be less than 21 years of age when the individual
graduates from high school.
(ii) Be a United States citizen and maintain residency in this state, as determined for purposes of the Free
Application for Federal Student Aid.
(iii) Be at least a half -time student, earning less than 80 semester or 120 term credits at a participating
educational institution within 4 years of high school graduation or achievement of a high school equivalency
certificate. All program eligibility expire s 10 years after initial enrollment at a participating educational
institution.
(iv) Meet the satisfactory academic progress policy of the educational institution attended by the individual.
(b) To be eligible for phase II, an individual must meet either of the following criteria in addition to the criteria
in subdivision (a):
(i) Complete at least 56 transferable semester or 84 transferable term credits.
(ii) Obtain an associate degree or certificate at a participating institution.
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(c) To be eligible for phase I or phase II, an individual must be financially eligible as determined by the
department. An individual is financially eligible for the tuition incentive program if the individual was eligible
for Medicaid from this state for 24 months within any 36 months prior to completion of high school or achievement
of a high school equivalency certificate. The department shall accept certification of Medicaid eligibility only from
the department of health and human services for the purposes of verifying if a person is Medicaid eligible for
24 months within any 36 months prior to completion of high school or achievement of a high school equivalency
certificate. Certification of eligibility may begin in the sixth grade.
(4) For phase I, the department shall provide payment on behalf of a person eligible under subsection (3). The
department shall only accept standard per-credit hour tuition billings and shall reject billings that are excessive
or outside the guidelines for the type of educational institution.
(5) For phase I, all of the following apply:
(a) Payments for associate degree or certificate programs must not be made for more than 80 semester or
120 term credits for any individual student at any participating institution. The department shall not do either
of the following:
(i) Adopt or apply any total semester -credit or term-credit maximum that is less than the 80 semester -credit
or 120 term-credit maximum provided in this subdivision.
(ii) Adopt or apply any per-semester or per-term credit maximum for a student whose semester-credit or term-
credit load will not result in exceeding the total 80 semester-credit or 120 term-credit maximum provided in this
subdivision.
(b) For persons enrolled at a Michigan community college, the department shall pay the current in -district
tuition and mandatory fees. For persons residing in an area that is not included in any community college district,
the out-of-district tuition rate may be authorized.
(c) For persons enrolled at a Michigan public university, the department shall pay lower division resident
tuition and mandatory fees for the current year.
(d) For persons enrolled at a Michigan independent, nonprofit degree -granting college or university or a
Michigan federal tribally controlled community college, the department shall pay mandatory fees for the current
year and a per -credit payment that does not exceed the average community college in -district per-credit tuition
rate as reported by the last business day of August for the immediately preceding academic year.
(6) A person participating in phase II may be eligible for additional funds not to exceed $500.00 per semester
or $400.00 per term up to a maximum of $2,000.00 subject to the following conditions:
(a) Credits are earned in a 4-year program at a Michigan degree-granting 4-year college or university.
(b) The tuition reimbursement is for coursework completed within 30 months of completion of the phase I
requirements.
(7) The department shall work closely with participating institutions to provide the highest level of
participation and ensure that all requirements of the program are met.
(8) The department shall notify students in an age -appropriate manner of their financial eligibility for the
program any time after the student begins sixth grade.
(9) Except as otherwise provided in sections 13(c) and 17 of the Michigan reconnect grant recipient act,
2020 PA 68, MCL 390.1713 and 390.1717, each institution shall ensure that all known available restricted grants
for tuition and fees are used before billing the tuition incentive program for any portion of a student’s tuition and
fees.
(10) The department shall ensure that the tuition incentive program is well publicized and that eligible
Medicaid clients are provided information on the program. The department shall provide the necessary funding
and staff to fully operate the program.
(11) The department shall collaborate with the center to use the P -20 longitudinal data system to report the
following information for each qualified postsecondary institution:
(a) The number of phase I students in the most recently completed academic year who in any academic year
received a tuition incentive program award and who successfully completed a degree or certificate program.
Cohort graduation rates for phase I students must be calculated using the established success rate methodology
developed by the center in collaboration with the postsecondary institutions.
(b) The number of students in the most recently completed academic year who in any academic year received
a Pell grant at the reporting institution and who successfully completed a degree or certificate program. Cohort
graduation rates for students who rec eived Pell grants must be calculated using the established success rate
methodology developed by the center in collaboration with the postsecondary institutions.
(12) If a qualified postsecondary institution does not report the data necessary to complete the reporting in
subsection (11) to the P -20 longitudinal data system by October 15 for the prior academic year, the department
shall not award phase I tuition inc entive program funding to otherwise eligible students enrolled in that
institution until the data are submitted.
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Sec. 260. (1) The department of lifelong education, advancement, and potential shall work with student and
postsecondary education groups, including the Michigan College Access Network, the Michigan Association of
School Counselors, the Michigan Association of State Universities, the Michigan Community College Association,
and the Michigan Independent Colleges and Universities, to provide and update an online informational resource
for students in grades 9 through 12 and prospective and current students and families. The online informational
resource must be a website or a portion of an existing website titled “Paying for College in Michigan” and designed
and maintained by the department of lifelong education, advancement, and potential that, to the extent
practicable, contains information, including, but not limited to, all of the following:
(a) A list of public and private community support centers, student debt clinics, and other organizations and
their contact information submitted by Michigan College Access Network that provides free information and
services for student loan borrowers to help educate them about repayment options and to help them access student
loan programs or benefits for which they may be eligible.
(b) Links to state and federal financial aid programs, including FAFSA and College Scorecard.
(c) Links to each promise zone website and the financial aid website to each community college, public
university, and independent college and university in this state.
(d) Benefits of federal student loans that may no longer be available if a borrower refinances a loan.
(e) Direct links to net price calculators for each community college receiving an appropriation in section 201
and each public university receiving an appropriation in section 236.
(f) Definitions that clearly delineate the differences between scholarships, grants, and loans.
(g) A description of net price calculators and how to use them to create a personalized estimate of a student ’s
out-of-pocket cost for the coming year based on basic family and financial information and likely financial aid
eligibility.
(h) Information on the fundamentals of borrowing and repayment, including, but not limited to, all of the
following:
(i) A link to the federal Public Service Loan Forgiveness Program or other state or federal loan forgiveness
programs.
(ii) Deciding how much to borrow.
(iii) Creating a plan for borrowing and repayment.
(iv) Estimating how much borrowing is needed for a given school year.
(v) Factors that affect total student loan costs.
(vi) Tips for graduating with less student loan debt.
(vii) A loan payment calculator or a link to a loan payment calculator that can be used for different types of
loans.
(viii) Links to federal student loan entrance and exit counseling services and the FACT tool.
(ix) Student loan debt relief scams.
(i) Loan amortization information.
(2) A public university receiving an appropriation in section 236 shall place a prominent link to the website
created under this section on its website homepage.
(3) Independent colleges and universities in this state are encouraged to place a link to the website created
under this section on their website homepages.
(4) By November 1 of each year, the department of lifelong education, advancement, and potential shall inform
each high school in this state about the website described in this section and encourage them to distribute the
information to all students in grades 9 through 12.
(5) The department shall audit the website not less than once every 6 months to ensure links continue to be
accurate, active, and up-to-date for students and families.

Sec. 263. (1) Included in the appropriation in section 236 for fiscal year 2025-2026 for MSU AgBioResearch is
$2,982,900.00 and included in the appropriation in section 236 for MSU Extension is $2,645,200.00 for Project
GREEEN. Project GREEEN is intended to address critical regulatory, food safety, economic, and environmental
problems faced by this state ’s plant -based agriculture, forestry, and processing industries. “GREEEN” is an
acronym for Generating Research and Extension to Meet Environmental and Economic Needs.
(2) The department of agriculture and rural development and Michigan State University, in consultation with
agricultural commodity groups and other interested parties, shall develop Project GREEEN and its program
priorities.

Sec. 263b. Included in the appropriation in section 236 for fiscal year 2025-2026 for MSU AgBioResearch and
MSU Extension is funding for the Agricultural Climate Resiliency Program. The Agricultural Climate Resiliency
Program is intended to address environmental sustainability of Michigan agriculture and promote the protection
and efficient use of Michigan’s water resources.
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Sec. 264. Included in the appropriation in section 236 for fiscal year 2025-2026 for Michigan State University
is $80,000.00 for the Michigan Future Farmers of America Association. This $80,000.00 allocation must not
supplant any existing support that Mich igan State University provides to the Michigan Future Farmers of
America Association.

Sec. 268. (1) For the fiscal year ending September 30, 2026, it is the intent of the legislature that funds be
allocated for unfunded North American Indian tuition waiver costs incurred by public universities under
1976 PA 174, MCL 390.1251 to 390.1253, from the general fund.
(2) By January 15 of each year, the department of lifelong education, advancement, and potential shall
annually submit to the state budget director, the house and senate appropriations subcommittees on higher
education, and the house and senate fiscal agen cies a report on North American Indian tuition waivers for the
preceding academic year that includes, but is not limited to, all of the following information:
(a) The number of waiver applications received and the number of waiver applications approved.
(b) For each public university submitting information under subsection (3), all of the following:
(i) The number of graduate and undergraduate North American Indian students enrolled each term for the
previous academic year.
(ii) The number of North American Indian waivers granted each term, including to continuing education
students, and the monetary value of the waivers for the previous academic year.
(iii) The number of North American Indian students who receive a granted waiver for the previous academic
year.
(iv) The number of graduate and undergraduate students attending under a North American Indian tuition
waiver who withdrew from the public university each term during the previous academic year. For purposes of
this subparagraph, a withdrawal occurs when a st udent who has been awarded the waiver withdraws from the
institution at any point during the term, regardless of enrollment in subsequent terms.
(v) The number of graduate and undergraduate students attending under a North American Indian tuition
waiver who successfully transfer to a 4 -year public or private university, or complete a degree or certificate
program, separated by degree or certificate l evel, and the graduation rate for graduate and undergraduate
students attending under a North American Indian tuition waiver who complete a degree or certificate within
150% of the normal time to complete, separated by the level of the degree or certificate.
(3) By January 1 of each year, a public university that receives an appropriation in section 236, or a tribal
college receiving pass-through funds under section 269, 270, or 270c, shall provide to the department of lifelong
education, advancement, and pote ntial any information necessary for preparing the report detailed in
subsection (2), using guidelines and procedures developed by the department of lifelong education, advancement,
and potential.
(4) The department of lifelong education, advancement, and potential may consolidate the report required
under this section with the report required under section 223, but a consolidated report must separately identify
data for public universities and data for community colleges.

Sec. 269. For fiscal year 2025 -2026, from the amount appropriated in section 236 to Central Michigan
University for costs incurred under the North American Indian tuition waiver, $80,800.00 must be paid to
Saginaw Chippewa Tribal College for the costs of waiving tuition for North American Indians under 1976 PA 174,
MCL 390.1251 to 390.1253. It is the intent of the legislature that Saginaw Chippewa Tribal College provide the
department of lifelong education, advancement, and potential the necessary informati on for the college to be
included in the report required under section 268.

Sec. 270. For fiscal year 2025 -2026, from the amount appropriated in section 236 to Lake Superior State
University for costs incurred under the North American Indian tuition waiver, $498,800.00 must be paid to
Bay Mills Community College for the costs of waiving tuition for North American Indians under 1976 PA 174,
MCL 390.1251 to 390.1253. It is the intent of the legislature that Bay Mills Community College provide the
department of lifelong education, advancement, and potential the necessary information f or the college to be
included in the report required under section 268.

Sec. 270c. For fiscal year 2025 -2026, from the amount appropriated in section 236 to Northern Michigan
University for costs incurred under the North American Indian tuition waiver, $105,700.00 is to be paid to
Keweenaw Bay Ojibwa Community College for the costs of waiving tuition for North American Indians under
1976 PA 174, MCL 390.1251 to 390.1253. It is the intent of the legislature that Keweenaw Bay Ojibwa Community
College provide the department of lifelong education, advancement, and potential the nec essary information for
the community college to be included in the report required under section 268.
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Sec. 275k. (1) Not later than December 1 of each year, each university that receives an appropriation in
section 236 that, in the current or previous academic year, serves or has served as an authorizing body shall
submit a report to the house and senate appropriations subcommittees on higher education, the house and senate
fiscal agencies, the state budget director, and the department of education containing, at a minimum, all of the
following information, as applicable:
(a) A list of all of the schools currently authorized, and the following information for each school:
(i) The year in which the school was authorized.
(ii) The location of each school.
(iii) The owner of the property at which each school is located and the physical buildings utilized by the school,
as applicable.
(b) A list identifying any schools that were closed or lost their authorization in the current or previous academic
year.
(c) A description of any new contracts for the operation of a public school academy that will operate as the
successor to a public school academy that is currently being operated under a contract issued by another
authorizing body that is currently performing in the bottom 5% of schools.
(d) The academic performance of each school currently authorized, including whether a school is identified by
the department of education as a partnership school. If a school is identified as a partnership school under this
subdivision, the authorizing bod y shall include a description of corrective actions in the school ’s partnership
agreement, the duration of the partnership agreement, and an assessment of progress toward improvement.
(e) The total enrollment of each school at the time of submission, the grades served, and student turnover rate
compared to the previous academic year, as applicable.
(f) Aggregated student enrollment data for students with an individualized education program as well as the
total amount of special education cost reimbursements received by each school during the school ’s most recently
completed fiscal year.
(g) The total number of fees, reimbursements, contributions, or charges permitted under section 502(6) of the
revised school code, 1976 PA 451, MCL 380.502, that are assigned to each school currently authorized in a single
academic year.
(h) The names of the members of the board of directors of each school currently authorized and the date that
each member of each board was appointed, and a description of the methodology used by the authorizing body to
select members for the boards of directors for each school currently authorized by the authorizing body.
(i) The name of the applicant who applied and received approval to organize each currently authorized school.
(j) The list of contracts and length of their terms, with education service providers associated with each school
currently authorized pursuant to section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable.
The contracts described in this subdivision include, but are not limited to, those described in section 502(2)(d) of
the revised school code, 1976 PA 451, MCL 380.502.
(k) Activities undertaken by each university to ensure that the board of directors of each school complies with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246, and laws prohibiting conflicts of interest.
(l) A description of the activities undertaken by the university to meet the functions of an authorizing body
under section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable.
(m) A financial report of the authorizing body’s use of fees, reimbursements, contributions, or charges collected
or retained under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502. This report must include
all of the following, at a minimum:
(i) The total amount of fees collected or retained under section 502(6) of the revised school code, 1976 PA 451,
MCL 380.502, by the authorizing body for the authorizing body’s most recent fiscal year.
(ii) The amount of funds reported under subparagraph ( i) that were spent on compensation for faculty and
staff employed primarily to meet the functions of an authorizing body. For the purpose of this subparagraph, an
employee is presumed to be primarily employed to meet the functions of an authorizing body if that employee
spends more than 50% of the employee’s time on those activities.
(iii) The number of positions, organized by job title, associated with expenditures reported under
subparagraph (ii).
(iv) The amount of funds reported under subparagraph (i) that were spent on contractual services to meet the
functions of an authorizing body.
(v) The amount of funds reported under subparagraph (i) that were spent on other overhead costs to meet the
functions of an authorizing body.
(vi) The amount of funds reported under subparagraph ( i) that were transferred to another operating unit
within the university.
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(vii) The amount of funds reported under subparagraph (i) that were spent on activities other than functioning
as an authorizing body, including a list of those activities and the amount associated with each activity.
(n) An executive summary section that provides relevant summary data for reporting requirements under
subdivisions (a) to (m).
(2) A report submitted under this section must be in a format that meets accessibility standards for viewing
on the internet under the Americans with disabilities act of 1990, Public Law 101-336.
(3) A report submitted under this section must be published and updated through a link on the homepage of
the public university’s website.
(4) In addition to the reporting requirements under this section, each authorizing body that receives an
appropriation under section 236 shall adopt a facilities policy ensuring that any structures or other property
vacated by a public school academy that ceases operation not contribute to blight in the surrounding neighborhood
or community in which the school had previously operated.
(5) As used in this section, “authorizing body” means that term as defined in section 501 of the revised school
code, 1976 PA 451, MCL 380.501.

Sec. 276. (1) Included in the appropriation for fiscal year 2025 -2026 for each public university in section 236
is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty fellowship program that is
intended to increase the pool o f academically or economically disadvantaged candidates pursuing faculty or
administration careers in postsecondary education in this state. Preference may not be given to applicants on the
basis of race, color, ethnicity, gender, or national origin. Insti tutions should encourage applications from
applicants who would otherwise not adequately be represented in the graduate student, faculty, or administration
populations. Each public university shall apply the percentage change applicable to every public university in the
calculation of appropriations in section 236 to the amount of funds allocated to the future faculty fellowship
program.
(2) Each public university shall administer the program in a manner prescribed by the department of labor
and economic opportunity. The department of labor and economic opportunity shall use a good -faith effort
standard to evaluate whether a fellowship is in default. All of the following apply to the program:
(a) By June 15 of each year, public universities shall report any anticipated unexpended or unencumbered
program funds to the department of labor and economic opportunity. Encumbered funds are those funds that were
committed by a fellowship agreement that is signed during the current fiscal year or administrative expenses that
have been approved by the department of labor and economic opportunity.
(b) Before September 1 of each year, unexpended or unencumbered funds may be transferred, under the
direction of the department of labor and economic opportunity, to a future faculty fellowship program at another
public university to be awarded to an eligible candidate at that public university.
(c) Program allocations not expended or encumbered by September 30, 2027 must be returned to the
department of labor and economic opportunity so that those funds may lapse to the state general fund.
(d) Not more than 5% of each public university’s allocation for the program may be used for administration of
the program.
(e) In addition to the appropriation for fiscal year 2025-2026, any revenue received during prior fiscal years by
the department of labor and economic opportunity from defaulted fellowship agreements is appropriated for the
purposes originally intended.

Sec. 277. (1) Included in the appropriation for fiscal year 2025 -2026 for each public university in section 236
is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program that is intended to
introduce academically or economi cally disadvantaged schoolchildren to the potential of a college education in
this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national
origin. Public universities should encourage participation fro m those who would otherwise not adequately be
represented in the student population.
(2) Individual program plans of each public university must include a budget of equal contributions from this
program, the participating public university, the participating school district, and the participating independent
degree-granting college. College day funds must not be expended to cover indirect costs. Not more than 20% of
the university match may be attributable to indirect costs. Each public university shall apply the percentage
change applicable to every public university in the calculation of appropriations in section 236 to the amount of
funds allocated to the college day program.
(3) Each public university shall administer the program described in this section in a manner prescribed by
the department of labor and economic opportunity.
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Sec. 278. (1) Included in the appropriation for fiscal year 2025 -2026 for each public university in section 236
is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program
for developing academically or ec onomically disadvantaged student retention programs for 4 -year public and
independent educational institutions in this state. Preference may not be given to participants on the basis of
race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would
otherwise not adequately be represented in the student population.
(2) An award made under this program to any 1 institution must not be greater than $150,000.00, must have
an award period of no more than 2 years, and must be matched on a 70% state, 30% college or university basis.
(3) The department of labor and economic opportunity shall administer the program described in this section.

Sec. 279. (1) Included in the appropriation for fiscal year 2025 -2026 for each public university in section 236
is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program
between 4-year public and independent colleges and universities and public community colleges, which is intended
to increase the number of academically or economically disadvantaged students who transfer from community
colleges into baccalaureate programs in this state. Preference may not be given to participants on the basis of
race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would
otherwise not adequately be represented in the transfer student population.
(2) The grants must be made under the program described in this section to Michigan public and independent
colleges and universities. An award to any 1 institution must not be greater than $150,000.00, must have an
award period of no more than 2 years, and must be matched on a 70% state, 30% college or university basis.
(3) The department of labor and economic opportunity shall administer the program described in this section.

Sec. 280. (1) Included in the appropriation for fiscal year 2025 -2026 for each public university in section 236
is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program, which is
intended to increase the number of instructors in the classroom to provide role models for academically or
economically disadvantaged students. Preference may not be given to participants on the basis of race, color,
ethnicity, gender, or national origin. Public universities should encourag e participation from those who would
otherwise not adequately be represented in the student population.
(2) The department of labor and economic opportunity shall administer the program described in this section.
(3) The amount allocated to each public university is $11,184.00 and is subject to an award period of no more
than 2 years. Each public university receiving funds for fiscal year 2025 -2026 under this section shall report to
the department of labor and economic opportunity by April 15, 2026 the amount of its unobligated and unexpended
funds as of March 31, 2026 and a plan to expend the remaining funds by the end of the fiscal year. The amount of
funding reported as not being expended may be transferred, unde r the direction of the department, to another
public university for use under this section.

Sec. 281. (1) Included in the appropriation for fiscal year 2025 -2026 for each public university in section 236
is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr.
educator development program, which is intended to increase the number of academically or economically
disadvantaged students who enroll in and complete K -12 teacher education programs at the baccalaureate level
and teach in this state. Preference may not be given to participants on the bas is of race, color, ethnicity, gender,
or national origin. Institutions should encourage participation from those who would otherwise not adequately be
represented in the teacher education student population.
(2) The program described in this section must be administered by each state -approved teacher education
institution in a manner prescribed by the department of labor and economic opportunity.
(3) Approved teacher education institutions may and are encouraged to use select student support services
funding in coordination with the Morris Hood, Jr. funding to achieve the goals of the program described in this
section.

Sec. 282. (1) Each institution receiving funds for fiscal year 2025 -2026 under section 278, 279, or 281 shall
provide to the department of labor and economic opportunity by April 15, 2026 the unobligated and unexpended
funds as of March 31, 2026 and a plan to expend the remaining funds by the end of the fiscal year.
Notwithstanding the award limitations in sections 278 and 279, the amount of funding reported as not being
expended will be reallocated to the institutions that intend to expend all funding received under section 278, 279,
or 281.
(2) Funds received for the purpose of administering programs under sections 278, 279, and 281 must not be
used for direct financial aid or indirect financial aid. However, a public university may provide academic
incentives to motivate participating students as approved by the department. As used in this subsection:
(a) “Direct financial aid” includes, but is not limited to, scholarships, payment of tuition, stipends, and work -
studies.
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(b) “Indirect financial aid ” includes, but is not limited to, transportation, textbook allowances, child care
support, and assistance with medical premiums or expenses.

Sec. 283. (1) Using the data provided to the center as required by section 244 of this act, the center shall use
the P -20 longitudinal data system to inform interested Michigan high schools and the public regarding the
aggregate academic status of its stud ents. The center shall work with the public universities and the Michigan
Association of State Universities and in cooperation with the Michigan Association of Secondary School Principals.
(2) Michigan high schools shall systematically inform the public universities about the use of information
received under this section in a manner prescribed by the Michigan Association of Secondary School Principals in
cooperation with the Michigan Association of State Universities.
(3) The center shall conduct a review of the statewide longitudinal data system and associated data collection
processes to identify strategies that would allow for the legal dissemination of student directory information for
all students in grades 11 and 12 to Michigan public and independent nonprofit postsecondary institutions.

Sec. 284. Using data provided to the center as required by section 244 of this act, the center shall use the
P-20 longitudinal data system to inform Michigan community colleges regarding the academic status of
community college transfer students. The center shall work with the department of lifelong education,
advancement, and potential, the universities, and the Mich igan Association of State Universities in cooperation
with the Michigan Community College Association.

Sec. 285. From the funds appropriated in section 236(2), public universities shall work with the state
community colleges to encourage the transfer of students from the community colleges to the public universities
and to facilitate the transfer of credits from the community colleges to those public universities. Each public
university that receives an appropriation under section 236 shall consult with the department of lifelong
education, advancement, and potential at least once an academic year on the policies and services the institution
implements regarding transfer credits and transfer students.

Sec. 286. From the funds appropriated in section 236(2), public universities shall work with community
colleges in this state to implement statewide reverse transfer agreements to increase the number of students that
are awarded credentials of value upon c ompletion of the necessary credits. These statewide agreements shall
enable students who have earned a significant number of credits at a community college and transfer to a
baccalaureate granting institution before completing a degree to transfer the credits earned at the baccalaureate
institution back to the community college in order to be awarded a credential of value. Each public university that
receives an appropriation under section 236 shall consult with the department of lifelong education, advancement,
and potential at least once an academic year on the policies and services the institution implements regarding
reverse transfer agreements.
Enacting section 1. (1) In accordance with section 30 of article IX of the state constitution of 1963, total state
spending on school aid under article I of the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772,
as amended by 2024 PA 120, 2024 PA 148, and by this amendatory act, from state sources for fiscal year 2024 -
2025 is estimated at $18,811,776,900.00 and state appropriations for school aid to be paid to local units of
government for fiscal year 2024-2025 are estimated at $17,366,388,900.00. In accordance with section 30 of article
IX of the state constitution of 1963, total state spending on school aid under article I of the state school aid act of
1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by this amendatory act, from sta te sources for fiscal
year 2025-2026 is estimated at $18,881,123,200.00 and state appropriations for school aid to be paid to local units
of government for fiscal year 2025-2026 are estimated at $17,433,304,100.00.
(2) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state
sources for community colleges for fiscal year 2025 -2026 under article II of the state school aid act of 1979,
1979 PA 94, MCL 388.1801 to 388.1830, as amended by this amendatory act, is estimated at $493,032,100.00 and
the amount of that state spending from state sources to be paid to local units of government for fiscal year 2025 -
2026 is estimated at $493,032,100.00.
(3) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state
sources for higher education for fiscal year 2025 -2026 under article III of the state school aid act of 1979,
1979 PA 94, MCL 388.1836 to 388.1891, as amended by this amendatory act, is estimated at $2,333,712,000.00
and the amount of that state spending from state sources to be paid to local units of government for fiscal year
2025-2026 is estimated at $0.00.

Enacting section 2. Sections 12c, 19b, 20f, 22c, 22e, 23h, 27f, 27g, 27n, 27o, 27s, 31j, 32p, 35d, 35j, 51h, 54b,
61s, 67a, 67b, 67d, 97a, 97h, 97j, 97m, 98d, 99c, 99d, 99g, 99i, 99s, 99t, 99u, 99x, 99ff, 99hh, 99ii, 99jj, 104f, 201g,
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201h, 236f, 236n, 236r, and 287 of the state school aid act of 1979, 1979 PA 94, MCL 388.1612c, 388.1619b,
388.1620f, 388.1622c, 388.1622e, 388.1623h, 388.1627f, 388.1627g, 388.1627n, 388.1627o, 388.1627s, 388.1631j,
388.1632p, 388.1635d, 388.1635j, 388.1651h, 388.1654b, 388.1661s, 388.1667a, 388.1667b, 388.1667d, 388.1697a,
388.1697h, 388.1697j, 388.1697m, 388.1698d, 388.1699c, 388.1699d, 388.1699g, 388.1699i, 388.1699s, 388.1699t,
388.1699u, 388.1699x, 388.1699ff, 388.1699hh, 388.1699ii, 388.1699jj, 388.1 704f, 388.1801g, 388.1801h,
388.1836f, 388.1836n, 388.1836r, and 388.1887 are repealed.
This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives
Approved___________________________________________

____________________________________________________
Governor