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SB-860, As Passed Senate, April 30, 2026
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SUBSTITUTE FOR
SENATE BILL NO. 860
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 11aa,
12d, 12e, 15, 18, 18a, 19, 20, 20d, 21b, 21f, 21h, 22a, 22b, 22d,
22k, 22l, 22m, 24, 24a, 25f, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27j,
27l, 27m, 28, 30d, 31a, 31c, 31d, 31f, 31n, 31aa, 32d, 32n, 32t,
35a, 35e, 35m, 39, 39a, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 56,
61a, 61b, 62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 98, 99, 99h, 101,
104, 104h, 107, 147, 147a, 147b, 147c, 147e, 152a, 152b, 163, 164l,
201, 201f, 201i, 206, 207c, 212, 216e, 217a, 217b, 223, 229a, 230,
236, 236c, 236d, 236j, 236s, 241, 241a, 241b, 241c, 241e, 247, 248,
254, 256, 263, 263b, 264, 268, 269, 270, 270c, 276, 277, 278, 279,
280, 281, and 282 (MCL 388.1603, 388.1606, 388.1611, 388.1611a,
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388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1611x, 388.1611aa,
388.1612d, 388.1612e, 388.1615, 388.1618, 388.1618a, 388.1619,
388.1620, 388.1620d, 388.1621b, 388.1621f, 388.1621h, 388.1622a,
388.1622b, 388.1622d, 388.1622k, 388.1622l, 388.1622m, 388.1624,
388.1624a, 388.1625f, 388.1626a, 388.1626b, 388.1626c, 388.1626d,
388.1627a, 388.1627b, 388.1627c, 388.1627j, 388.1627l, 388.1627m,
388.1628, 388.1630d, 388.1631a, 388.1631c, 388.1631d, 388.1631f,
388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632t, 388.1635a,
388.1635e, 388.1635m, 388.1639, 388.1639a, 388.1651a, 388.1651c,
388.1651d, 388.1651e, 388.1651g, 388.1653a, 388.1654, 388.1654d,
388.1656, 388.1661a, 388.1661b, 388.1662, 388.1665, 388.1667,
388.1667f, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1694e,
388.1698, 388.1699, 388.1699h, 388.1701, 388.1704, 388.1704h,
388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c, 388.1747e,
388.1752a, 388.1752b, 388.1763, 388.1764l, 388.1801, 388.1801f,
388.1801i, 388.1806, 388.1807c, 388.1812, 388.1816e, 388.1817a,
388.1817b, 388.1823, 388.1829a, 388.1830, 388.1836, 388.1836c,
388.1836d, 388.1836j, 388.1836s, 388.1841, 388.1841a, 388.1841b,
388.1841c, 388.1841e, 388.1847, 388.1848, 388.1854, 388.1856,
388.1863, 388.1863b, 388.1864, 388.1868, 388.1869, 388.1870,
388.1870c, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880,
388.1881, and 388.1882), sections 3, 6, 11, 11a, 11j, 11k, 11m,
11s, 11x, 15, 18, 19, 20, 20d, 21f, 21h, 22a, 22b, 22d, 22k, 22l,
24, 24a, 25f, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27l, 28, 30d, 31a,
31d, 31f, 31n, 31aa, 32d, 32n, 32t, 35a, 35m, 39, 39a, 51a, 51c,
51d, 51e, 51g, 53a, 54, 54d, 56, 61a, 61b, 62, 65, 67, 67f, 74, 81,
94, 94a, 94e, 98, 99, 99h, 101, 104, 104h, 107, 147, 147a, 147c,
147e, 152a, 152b, 201, 201f, 206, 207c, 212, 216e, 217a, 217b,
229a, 230, 236, 236c, 236d, 236j, 241, 241a, 241b, 241c, 241e, 247,
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248, 254, 256, 263, 263b, 264, 268, 269, 270, 270c, 276, 277, 278,
279, 280, 281, and 282 as amended and sections 12e, 31c, 35e, 164l,
201i, and 236s as added by 2025 PA 15, sections 11aa and 27m as
added and section 147b as amended by 2023 PA 103, section 18a as
amended by 2020 PA 165, section 21b as amended by 2022 PA 144, and
sections 27j, 163, and 223 as amended by 2024 PA 120, and by adding
sections 23h, 32p, 35o, 35p, 35q, 51i, 54b, 98d, 99o, 99s, 152c,
217d, 217e, 217g, 236k, 275l, 275n, 275o, and 287; 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 1
complying with federal law, means 92% of the pupils counted in 2
membership on the pupil membership count day, as defined in section 3
6(7). 4
(2) "Board" means the governing body of a district or public 5
school academy. 6
(3) "Center" means the center for educational performance and 7
information created in section 94a. 8
(4) "Community district" means a school district organized 9
under part 5b of the revised school code, MCL 380.381 to 380.396. 10
(5) "Cooperative education program" means a written voluntary 11
agreement between and among districts to provide certain 12
educational programs for pupils in certain groups of districts. The 13
written agreement must be approved by all affected districts at 14
least annually and must specify the educational programs to be 15
provided and the estimated number of pupils from each district who 16
will participate in the educational programs. 17
(6) "Department", except as otherwise provided in this 18
article, means the department of education. 19
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(7) "District" means, except as otherwise specifically 1
provided in this act, a local school district established under the 2
revised school code or, except in sections 6(4), 6(6), 11x, 11y, 3
11aa, 12c, 13, 20, 22a, 22p, 31a, 51a(14), 105, 105c, and 166b, a 4
public school academy. Except in section 20, district also includes 5
a community district. 6
(8) "District of residence", except as otherwise provided in 7
this subsection, means the district in which a pupil's custodial 8
parent or parents or legal guardian resides. For a pupil described 9
in section 24b, the pupil's district of residence is the district 10
in which the pupil enrolls under that section. For a pupil 11
described in section 6(4)(d), the pupil's district of residence is 12
considered to be the district or intermediate district in which the 13
pupil is counted in membership under that section. For a pupil 14
under court jurisdiction who is placed outside the district in 15
which the pupil's custodial parent or parents or legal guardian 16
resides, the pupil's district of residence is considered to be the 17
educating district or educating intermediate district. 18
(9) "District superintendent" means the superintendent of a 19
district or the chief administrator of a public school academy. 20
Sec. 6. (1) "Center program" means a program operated by a 21
district or by an intermediate district for special education 22
pupils from several districts in programs for pupils with autism 23
spectrum disorder, pupils with severe cognitive impairment, pupils 24
with moderate cognitive impairment, pupils with severe multiple 25
impairments, pupils with hearing impairment, pupils with visual 26
impairment, and pupils with physical impairment or other health 27
impairment. Programs for pupils with emotional impairment housed in 28
buildings that do not serve regular education pupils also qualify. 29
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Unless otherwise approved by the department, a center program 1
either serves all constituent districts within an intermediate 2
district or serves several districts with less than 50% of the 3
pupils residing in the operating district. In addition, special 4
education center program pupils placed part-time in noncenter 5
programs to comply with the least restrictive environment 6
provisions of section 1412 of the individuals with disabilities 7
education act, 20 USC 1412, may be considered center program pupils 8
for pupil accounting purposes for the time scheduled in either a 9
center program or a noncenter program. 10
(2) "District and high school graduation rate" means the 11
annual completion and pupil dropout rate that is calculated by the 12
center pursuant to nationally recognized standards. 13
(3) "District and high school graduation report" means a 14
report of the number of pupils, excluding adult education 15
participants, in the district for the immediately preceding school 16
year, adjusted for those pupils who have transferred into or out of 17
the district or high school, who leave high school with a diploma 18
or other credential of equal status. 19
(4) "Membership", except as otherwise provided in this 20
article, means for a district, a public school academy, or an 21
intermediate district the sum of the product of .90 times the 22
number of full-time equated pupils in grades K to 12 actually 23
enrolled and in regular daily attendance in the district, public 24
school academy, or intermediate district on the pupil membership 25
count day for the current school year, plus the product of .10 26
times the final audited count from the supplemental count day of 27
full-time equated pupils in grades K to 12 actually enrolled and in 28
regular daily attendance in the district, public school academy, or 29
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intermediate district for the immediately preceding school year. A 1
district's, public school academy's, or intermediate district's 2
membership is adjusted as provided under section 25e for pupils who 3
enroll after the pupil membership count day in a strict discipline 4
academy operating under sections 1311b to 1311m of the revised 5
school code, MCL 380.1311b to 380.1311m. All pupil counts used in 6
this subsection are as determined by the department and calculated 7
by adding the number of pupils registered for attendance plus 8
pupils received by transfer and minus pupils lost as defined by 9
rules promulgated by the superintendent, and as corrected by a 10
subsequent department audit. The amount of the foundation allowance 11
for a pupil in membership is determined under section 20. In making 12
the calculation of membership, all of the following, as applicable, 13
apply to determining the membership of a district, a public school 14
academy, or an intermediate district: 15
(a) Except as otherwise provided in this subsection, and 16
pursuant to subsection (6), a pupil is counted in membership in the 17
pupil's educating district or districts. Except as otherwise 18
provided in this subsection, an individual pupil must not be 19
counted for more than a total of 1.0 full-time equated membership. 20
(b) If a pupil is educated in a district other than the 21
pupil's district of residence, if the pupil is not being educated 22
as part of a cooperative education program, if the pupil's district 23
of residence does not give the educating district its approval to 24
count the pupil in membership in the educating district, and if the 25
pupil is not covered by an exception specified in subsection (6) to 26
the requirement that the educating district must have the approval 27
of the pupil's district of residence to count the pupil in 28
membership, the pupil is not counted in membership in any district. 29
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(c) A special education pupil educated by the intermediate 1
district is counted in membership in the intermediate district. 2
(d) A pupil placed by a court or state agency in an on-grounds 3
program of a juvenile detention facility, a child caring 4
institution, or a mental health institution, or a pupil funded 5
under section 53a, is counted in membership in the district or 6
intermediate district approved by the department to operate the 7
program. 8
(e) A pupil enrolled in the Michigan Schools for the Deaf and 9
Blind is counted in membership in the pupil's intermediate district 10
of residence. 11
(f) A pupil enrolled in a career and technical education 12
program supported by a millage levied over an area larger than a 13
single district or in an area vocational-technical education 14
program established under section 690 of the revised school code, 15
MCL 380.690, is counted in membership only in the pupil's district 16
of residence. 17
(g) A pupil enrolled in a public school academy is counted in 18
membership in the public school academy. 19
(h) For the purposes of this section and section 6a, for a 20
cyber school, as that term is defined in section 551 of the revised 21
school code, MCL 380.551, that is in compliance with section 553a 22
of the revised school code, MCL 380.553a, a pupil's participation 23
in the cyber school's educational program is considered regular 24
daily attendance, and for a district or public school academy, a 25
pupil's participation in a virtual course as that term is defined 26
in section 21f is considered regular daily attendance. Beginning 27
July 1, 2021, this subdivision is subject to section 8c. It is the 28
intent of the legislature that the immediately preceding sentence 29
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apply retroactively and is effective July 1, 2021. For the purposes 1
of this subdivision, for a pupil enrolled in a cyber school, all of 2
the following apply with regard to the participation requirement as 3
described in this subdivision: 4
(i) Except as otherwise provided in this subdivision, the pupil 5
shall participate in each scheduled course on pupil membership 6
count day or supplemental count day, as applicable. If the pupil is 7
absent on pupil membership count day or supplemental count day, as 8
applicable, the pupil must attend and participate in class during 9
the next 10 consecutive school days if the absence was unexcused, 10
or during the next 30 calendar days if the absence was excused. 11
(ii) For a pupil who is not learning sequentially, 1 or more of 12
the following must be met on pupil membership count day or 13
supplemental count day, as applicable, for each scheduled course to 14
satisfy the participation requirement under this subdivision: 15
(A) The pupil attended a live lesson from the teacher. 16
(B) The pupil logged into a lesson or lesson activity and the 17
login can be documented. 18
(C) The pupil and teacher engaged in a subject-oriented 19
telephone conversation. 20
(D) There is documentation of an email dialogue between the 21
pupil and teacher. 22
(E) There is documentation of activity or work between the 23
learning coach and pupil. 24
(F) An alternate form of attendance as determined and agreed 25
upon by the cyber school and the pupil membership auditor was met. 26
(iii) For a pupil using sequential learning, the participation 27
requirement under this subdivision is satisfied if either of the 28
following occurs: 29
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(A) Except as otherwise provided in this sub-subparagraph, the 1
pupil and the teacher of record or mentor complete a 2-way 2
interaction for 1 course during the week on which pupil membership 3
count day or supplemental count day, as applicable, occurs, and the 4
3 consecutive weeks following that week. However, if a school break 5
is scheduled during any of the weeks described in this sub-6
subparagraph that is 4 or more days in length or instruction has 7
been canceled districtwide during any of the weeks described in 8
this sub-subparagraph for 3 or more school days, the district is 9
not required to ensure that the pupil and the teacher of record or 10
mentor completed a 2-way interaction for that week. As used in this 11
sub-subparagraph: 12
(I) "2-way interaction" means the communication that occurs 13
between the teacher of record or mentor and pupil, where 1 party 14
initiates communication and a response from the other party follows 15
that communication. Responses as described in this sub-sub-16
subparagraph must be to the communication initiated by the teacher 17
of record or mentor, and not some other action taken. This 18
interaction may occur through, but is not limited to, means such as 19
email, telephone, instant messaging, or face-to-face conversation. 20
A parent- or legal-guardian-facilitated 2-way interaction is 21
considered a 2-way interaction if the pupil is in any of grades K 22
to 5 and does not yet possess the skills necessary to participate 23
in 2-way interactions unassisted. The interactions described in 24
this sub-sub-subparagraph must relate to a virtual course on the 25
pupil's schedule and pertain to course content or progress. 26
(II) "Mentor" means a professional employee of the district 27
who monitors the pupil's progress, ensures the pupil has access to 28
needed technology, is available for assistance, and ensures access 29
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to the teacher of record. A mentor may also be the teacher of 1
record if the mentor meets the definition of a teacher of record 2
under this sub-subparagraph and the district is the provider for 3
the course. 4
(III) "Teacher of record" means a teacher to whom all of the 5
following apply: 6
(1) The teacher is responsible for providing instruction, 7
determining instructional methods for each pupil, diagnosing 8
learning needs, assessing pupil learning, prescribing intervention 9
strategies and modifying lessons, reporting outcomes, and 10
evaluating the effects of instruction and support strategies. The 11
teacher of record may coordinate the distribution and assignment of 12
the responsibilities described in this sub-sub-sub-subparagraph 13
with other teachers participating in the instructional process for 14
a course. 15
(2) The teacher is certified for the grade level or is working 16
under a valid substitute permit, authorization, or approval issued 17
by the department. 18
(3) The teacher has a personnel identification code provided 19
by the center. 20
(IV) "Week" means a period that starts on Wednesday and ends 21
the following Tuesday. 22
(B) The pupil completes a combination of 1 or more of the 23
following activities for each scheduled course on pupil membership 24
count day or supplemental count day, as applicable: 25
(I) Documented attendance in a virtual course where 26
synchronous, live instruction occurred with the teacher. 27
(II) Documented completion of a course assignment. 28
(III) Documented completion of a course lesson or lesson 29
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activity. 1
(IV) Documented pupil access to an ongoing lesson, which does 2
not include a login. 3
(V) Documented physical attendance on pupil membership count 4
day or supplemental count day, as applicable, in each scheduled 5
course, if the pupil will attend at least 50% of the instructional 6
time for each scheduled course on-site, face-to-face with the 7
teacher of record. As used in this sub-sub-subparagraph, "teacher 8
of record" means that term as defined in subparagraph (iii)(A). 9
(iv) For purposes of subparagraph (iii), each scheduled course 10
currently being attempted by the pupil, rather than every course on 11
the pupil's schedule for the entire term, is considered a part of 12
each scheduled course for the pupil. 13
(i) For a new district or public school academy beginning its 14
operation after December 31, 1994, membership for the first 2 full 15
or partial fiscal years of operation is determined as follows: 16
(i) If operations begin before the pupil membership count day 17
for the fiscal year, membership is the average number of full-time 18
equated pupils in grades K to 12 actually enrolled and in regular 19
daily attendance on the pupil membership count day for the current 20
school year and on the supplemental count day for the current 21
school year, as determined by the department and calculated by 22
adding the number of pupils registered for attendance on the pupil 23
membership count day plus pupils received by transfer and minus 24
pupils lost as defined by rules promulgated by the superintendent, 25
and as corrected by a subsequent department audit, plus the final 26
audited count from the supplemental count day for the current 27
school year, and dividing that sum by 2. 28
(ii) If operations begin after the pupil membership count day 29
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for the fiscal year and not later than the supplemental count day 1
for the fiscal year, membership is the final audited count of the 2
number of full-time equated pupils in grades K to 12 actually 3
enrolled and in regular daily attendance on the supplemental count 4
day for the current school year. 5
(j) If a district is the authorizing body for a public school 6
academy, then, in the first school year in which pupils are counted 7
in membership on the pupil membership count day in the public 8
school academy, the determination of the district's membership 9
excludes from the district's pupil count for the immediately 10
preceding supplemental count day any pupils who are counted in the 11
public school academy on that first pupil membership count day who 12
were also counted in the district on the immediately preceding 13
supplemental count day. 14
(k) For an extended school year program approved by the 15
superintendent, a pupil enrolled, but not scheduled to be in 16
regular daily attendance, on a pupil membership count day, is 17
counted in membership. 18
(l) To be counted in membership, a pupil must meet the minimum 19
age requirement to be eligible to attend school under section 1147 20
of the revised school code, MCL 380.1147, and must be less than 20 21
years of age on September 1 of the school year except as follows: 22
(i) A special education pupil who is enrolled and receiving 23
instruction in a special education program or service approved by 24
the department, who does not have a high school diploma, and who is 25
less than 26 years of age as of September 1 of the current school 26
year is counted in membership. 27
(ii) A pupil who is determined by the department to meet all of 28
the following may be counted in membership: 29
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(A) Is enrolled in a public school academy or an alternative 1
education high school diploma program, that is primarily focused on 2
educating pupils with extreme barriers to education, such as being 3
homeless as that term is defined under 42 USC 11302. 4
(B) Had dropped out of school. 5
(C) Is less than 22 years of age as of September 1 of the 6
current school year. 7
(iii) If a child does not meet the minimum age requirement to be 8
eligible to attend school for that school year under section 1147 9
of the revised school code, MCL 380.1147, but will be 5 years of 10
age not later than December 1 of that school year, the district may 11
count the child in membership for that school year if the parent or 12
legal guardian has notified the district in writing that the parent 13
or legal guardian intends to enroll the child in kindergarten for 14
that school year. 15
(m) An individual who has achieved a high school diploma is 16
not counted in membership unless the individual is enrolled in a 17
state-approved early middle college and at least 1 college course 18
is transcribed for high school credit each membership count during 19
the individual's fifth year. An individual who has achieved a high 20
school equivalency certificate is not counted in membership unless 21
the individual is a student with a disability as that term is 22
defined in R 340.1702 of the Michigan Administrative Code. An 23
individual participating in a job training program funded under 24
former section 107a, as repealed by 2004 PA 351, or a jobs program 25
funded under former section 107b, administered by the department of 26
labor and economic opportunity, or participating in any successor 27
of either of those 2 programs, is not counted in membership. 28
(n) If a pupil counted in membership in a public school 29
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academy is also educated by a district or intermediate district as 1
part of a cooperative education program, the pupil is counted in 2
membership only in the public school academy unless a written 3
agreement signed by all parties designates the party or parties in 4
which the pupil is counted in membership, and the instructional 5
time scheduled for the pupil in the district or intermediate 6
district is included in the full-time equated membership 7
determination under subdivision (q) and section 101. However, for 8
pupils receiving instruction in both a public school academy and in 9
a district or intermediate district but not as a part of a 10
cooperative education program, the following apply: 11
(i) If the public school academy provides instruction for at 12
least 1/2 of the class hours required under section 101, the public 13
school academy receives as its prorated share of the full-time 14
equated membership for each of those pupils an amount equal to 1 15
times the product of the hours of instruction the public school 16
academy provides divided by the number of hours required under 17
section 101 for full-time equivalency, and the remainder of the 18
full-time membership for each of those pupils is allocated to the 19
district or intermediate district providing the remainder of the 20
hours of instruction. 21
(ii) If the public school academy provides instruction for less 22
than 1/2 of the class hours required under section 101, the 23
district or intermediate district providing the remainder of the 24
hours of instruction receives as its prorated share of the full-25
time equated membership for each of those pupils an amount equal to 26
1 times the product of the hours of instruction the district or 27
intermediate district provides divided by the number of hours 28
required under section 101 for full-time equivalency, and the 29
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remainder of the full-time membership for each of those pupils is 1
allocated to the public school academy. 2
(o) An individual less than 16 years of age as of September 1 3
of the current school year who is being educated in an alternative 4
education program is not counted in membership if there are also 5
adult education participants being educated in the same program or 6
classroom. 7
(p) The department shall give a uniform interpretation of 8
full-time and part-time memberships. 9
(q) The number of class hours used to calculate full-time 10
equated memberships must be consistent with section 101. In 11
determining full-time equated memberships for pupils who are 12
enrolled in a postsecondary institution or for pupils engaged in an 13
internship or work experience under section 1279h of the revised 14
school code, MCL 380.1279h, a pupil is not considered to be less 15
than a full-time equated pupil solely because of the effect of the 16
pupil's postsecondary enrollment or engagement in the internship or 17
work experience, including necessary travel time, on the number of 18
class hours provided by the district to the pupil. 19
(r) Full-time equated memberships for pupils in kindergarten 20
are determined by dividing the number of instructional hours 21
scheduled and provided per year per kindergarten pupil by the same 22
number used for determining full-time equated memberships for 23
pupils in grades 1 to 12. However, to the extent allowable under 24
federal law, for a district or public school academy that provides 25
evidence satisfactory to the department that it used federal title 26
I money in the 2 immediately preceding school fiscal years to fund 27
full-time kindergarten, full-time equated memberships for pupils in 28
kindergarten are determined by dividing the number of class hours 29
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scheduled and provided per year per kindergarten pupil by a number 1
equal to 1/2 the number used for determining full-time equated 2
memberships for pupils in grades 1 to 12. The change in the 3
counting of full-time equated memberships for pupils in 4
kindergarten that took effect for 2012-2013 is not a mandate. 5
(s) For a district or a public school academy that has pupils 6
enrolled in a grade level that was not offered by the district or 7
public school academy in the immediately preceding school year, the 8
number of pupils enrolled in that grade level to be counted in 9
membership is the average of the number of those pupils enrolled 10
and in regular daily attendance on the pupil membership count day 11
and the supplemental count day of the current school year. 12
Membership is calculated by adding the number of pupils registered 13
for attendance in that grade level on the pupil membership count 14
day plus pupils received by transfer and minus pupils lost as 15
defined by rules promulgated by the superintendent, and as 16
corrected by subsequent department audit, plus the final audited 17
count from the supplemental count day for the current school year, 18
and dividing that sum by 2. 19
(t) A pupil enrolled in a cooperative education program may be 20
counted in membership in the pupil's district of residence with the 21
written approval of all parties to the cooperative agreement. 22
(u) If, as a result of a disciplinary action, a district 23
determines through the district's alternative or disciplinary 24
education program that the best instructional placement for a pupil 25
is in the pupil's home or otherwise apart from the general school 26
population, if that placement is authorized in writing by the 27
district superintendent and district alternative or disciplinary 28
education supervisor, and if the district provides appropriate 29
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instruction as described in this subdivision to the pupil at the 1
pupil's home or otherwise apart from the general school population, 2
the district may count the pupil in membership on a pro rata basis, 3
with the proration based on the number of hours of instruction the 4
district actually provides to the pupil divided by the number of 5
hours required under section 101 for full-time equivalency. For the 6
purposes of this subdivision, a district is considered to be 7
providing appropriate instruction if all of the following are met: 8
(i) The district provides at least 2 nonconsecutive hours of 9
instruction per week to the pupil at the pupil's home or otherwise 10
apart from the general school population under the supervision of a 11
certificated teacher. 12
(ii) The district provides instructional materials, resources, 13
and supplies that are comparable to those otherwise provided in the 14
district's alternative education program. 15
(iii) Course content is comparable to that in the district's 16
alternative education program. 17
(iv) Credit earned is awarded to the pupil and placed on the 18
pupil's transcript. 19
(v) If a pupil was enrolled in a public school academy on the 20
pupil membership count day, if the public school academy's contract 21
with its authorizing body is revoked or the public school academy 22
otherwise ceases to operate, and if the pupil enrolls in a district 23
within 45 days after the pupil membership count day, the department 24
shall adjust the district's pupil count for the pupil membership 25
count day to include the pupil in the count. 26
(w) For a public school academy that has been in operation for 27
at least 2 years and that suspended operations for at least 1 28
semester and is resuming operations, membership is the sum of the 29
18
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
product of .90 times the number of full-time equated pupils in 1
grades K to 12 actually enrolled and in regular daily attendance on 2
the first pupil membership count day or supplemental count day, 3
whichever is first, occurring after operations resume, plus the 4
product of .10 times the final audited count from the most recent 5
pupil membership count day or supplemental count day that occurred 6
before suspending operations, as determined by the superintendent. 7
(x) If a district's membership for a particular fiscal year, 8
as otherwise calculated under this subsection, would be less than 9
1,550 pupils, the district has 4.5 or fewer pupils per square mile, 10
as determined by the department, and the district does not receive 11
funding under section 22d(2), the district's membership is 12
considered to be the membership figure calculated under this 13
subdivision. If a district educates and counts in its membership 14
pupils in grades 9 to 12 who reside in a contiguous district that 15
does not operate grades 9 to 12 and if 1 or both of the affected 16
districts request the department to use the determination allowed 17
under this sentence, the department shall include the square 18
mileage of both districts in determining the number of pupils per 19
square mile for each of the districts for the purposes of this 20
subdivision. If a district has established a community engagement 21
advisory committee in partnership with the department of treasury, 22
is required to submit a deficit elimination plan or an enhanced 23
deficit elimination plan under section 1220 of the revised school 24
code, MCL 380.1220, and is located in a city with a population 25
between 9,000 and 11,000, as determined by the department, that is 26
in a county with a population between 150,000 and 160,000, as 27
determined by the department, the district's membership is 28
considered to be the The membership figure calculated under this 29
19
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
subdivision. The membership figure calculated under this 1
subdivision for a district is the greater of the following: 2
(i) The average of the district's membership for the 3-fiscal-3
year period ending with that fiscal year, calculated by adding the 4
district's actual membership for each of those 3 fiscal years, as 5
otherwise calculated under this subsection, and dividing the sum of 6
those 3 membership figures by 3. 7
(ii) The district's actual membership for that fiscal year as 8
otherwise calculated under this subsection. 9
(y) Full-time equated memberships for special education pupils 10
who are not enrolled in kindergarten but are enrolled in a 11
classroom program under R 340.1754 of the Michigan Administrative 12
Code are determined by dividing the number of class hours scheduled 13
and provided per year by 450. Full-time equated memberships for 14
special education pupils who are not enrolled in kindergarten but 15
are receiving early childhood special education services under R 16
340.1755 or R 340.1862 of the Michigan Administrative Code are 17
determined by dividing the number of hours of service scheduled and 18
provided per year per pupil by 180. 19
(z) A pupil of a district that begins its school year after 20
Labor Day who is enrolled in an intermediate district program that 21
begins before Labor Day is not considered to be less than a full-22
time pupil solely due to instructional time scheduled but not 23
attended by the pupil before Labor Day. 24
(aa) For the first year in which a pupil is counted in 25
membership on the pupil membership count day in a middle college 26
program, the membership is the average of the full-time equated 27
membership on the pupil membership count day and on the 28
supplemental count day for the current school year, as determined 29
20
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
by the department. If a pupil described in this subdivision was 1
counted in membership by the operating district on the immediately 2
preceding supplemental count day, the pupil is excluded from the 3
district's immediately preceding supplemental count for the 4
purposes of determining the district's membership. 5
(bb) A district or public school academy that educates a pupil 6
who attends a United States Olympic Education Center may count the 7
pupil in membership regardless of whether or not the pupil is a 8
resident of this state. 9
(cc) A pupil enrolled in a district other than the pupil's 10
district of residence under section 1148(2) of the revised school 11
code, MCL 380.1148, is counted in the educating district. 12
(dd) For a pupil enrolled in a dropout recovery program that 13
meets the requirements of section 23a, the pupil is must be counted 14
as 1/12 of a full-time equated membership for each month that the 15
district operating the program reports that the pupil was enrolled 16
in the program and was in full attendance or based on the number of 17
successfully completed courses by the pupil, with each successfully 18
completed course equivalent to 1/12 of a full-time equated 19
membership. A district may claim more than 1/12 of a full-time 20
equated membership within a month for an enrolled pupil who was in 21
full attendance and successfully completed more than 1 required 22
course. However, if If the special membership counting provisions 23
under this subdivision and the operation of the other membership 24
counting provisions under this subsection result in a pupil being 25
counted as more than 1.0 FTE in a fiscal year, the payment made for 26
the pupil entire FTE amount, including any amount in excess of 1.0 27
FTE, must be funded under sections 22a and 22b. must not be based 28
on A district may generate more than 1.0 FTE for that a pupil , and 29
21
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
any portion of an FTE for that pupil that exceeds 1.0 is instead 1
paid enrolled in a program under section 25g. 23a. The district 2
operating the program shall report to the center the number of 3
pupils who were enrolled in the program and were in full attendance 4
for a month not later than 30 days after the end of the that month. 5
A district shall not report a pupil as being in full attendance for 6
a month unless both of the following are met: 7
(i) A personalized learning plan is in place on or before the 8
first school day of the month for the first month the pupil 9
participates in the program. 10
(ii) Either of the following is met: 11
(A) The pupil meets the district's definition under section 12
23a of satisfactory monthly progress for that month or, if the 13
pupil does not meet that definition of satisfactory monthly 14
progress for that month, the pupil did meet that definition of 15
satisfactory monthly progress in the immediately preceding month 16
and appropriate interventions, as defined by the district, are 17
implemented within 10 school days after it is determined that the 18
pupil does not meet that definition of satisfactory monthly 19
progress. 20
(B) For the first 2 months that the pupil participates in the 21
program, the pupil earns 0.25 credit by the end of the second 22
month. A pupil described in this sub-subparagraph may be 23
retroactively reported as being in full attendance for the first 24
month that the pupil participated in the program. 25
(ee) A pupil participating in a virtual course under section 26
21f is counted in membership in the district enrolling the pupil. 27
(ff) If a public school academy that is not in its first or 28
second year of operation closes at the end of a school year and 29
22
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
does not reopen for the next school year, the department shall 1
adjust the membership count of the district or other public school 2
academy in which a former pupil of the closed public school academy 3
enrolls and is in regular daily attendance for the next school year 4
to ensure that the district or other public school academy receives 5
the same amount of membership aid for the pupil as if the pupil 6
were counted in the district or other public school academy on the 7
supplemental count day of the preceding school year. 8
(gg) If a special education pupil is expelled under section 9
1311 or 1311a of the revised school code, MCL 380.1311 and 10
380.1311a, and is not in attendance on the pupil membership count 11
day because of the expulsion, and if the pupil remains enrolled in 12
the district and resumes regular daily attendance during that 13
school year, the district's membership is adjusted to count the 14
pupil in membership as if the pupil had been in attendance on the 15
pupil membership count day. 16
(hh) A pupil enrolled in a community district is counted in 17
membership in the community district. 18
(ii) A part-time pupil enrolled in a nonpublic school in 19
grades K to 12 in accordance with section 166b must not be counted 20
as more than 0.75 of a full-time equated membership. 21
(jj) A district that borders another state or a public school 22
academy that operates at least grades 9 to 12 and is located within 23
20 miles of a border with another state may count in membership a 24
pupil who is enrolled in a course at a college or university that 25
is located in the bordering state and within 20 miles of the border 26
with this state if all of the following are met: 27
(i) The pupil would meet the definition of an eligible student 28
under the postsecondary enrollment options act, 1996 PA 160, MCL 29
23
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
388.511 to 388.524, if the course were an eligible course under 1
that act. 2
(ii) The course in which the pupil is enrolled would meet the 3
definition of an eligible course under the postsecondary enrollment 4
options act, 1996 PA 160, MCL 388.511 to 388.524, if the course 5
were provided by an eligible postsecondary institution under that 6
act. 7
(iii) The department determines that the college or university 8
is an institution that, in the other state, fulfills a function 9
comparable to a state university or community college, as those 10
terms are defined in section 3 of the postsecondary enrollment 11
options act, 1996 PA 160, MCL 388.513, or is an independent 12
nonprofit degree-granting college or university. 13
(iv) The district or public school academy pays for a portion 14
of the pupil's tuition at the college or university in an amount 15
equal to the eligible charges that the district or public school 16
academy would pay to an eligible postsecondary institution under 17
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 18
to 388.524, as if the course were an eligible course under that 19
act. 20
(v) The district or public school academy awards high school 21
credit to a pupil who successfully completes a course as described 22
in this subdivision. 23
(kk) A pupil enrolled in a middle college program may be 24
counted for more than a total of 1.0 full-time equated membership 25
for any of the school years in which the pupil is enrolled in the 26
middle college program, but the total full-time equated membership 27
for that pupil for all of the school years in which the pupil is 28
enrolled in high school must not be greater than 5.00 full-time 29
24
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
equated membership if the pupil is enrolled in more than the 1
minimum number of instructional days and hours required under 2
section 101 and the pupil is expected to complete the 5-year 3
program with both a high school diploma and at least 60 4
transferable college credits or is expected to earn an associate's 5
degree in fewer than 5 years. A pupil who graduates with both a 6
high school diploma and at least 60 transferable college credits or 7
an associate degree at least 1 semester early is considered to have 8
completed the middle college program in fewer than 5 years. 9
(ll) If a district's or public school academy's membership for 10
a particular fiscal year, as otherwise calculated under this 11
subsection, includes pupils counted in membership who are enrolled 12
under section 166b, all of the following apply for the purposes of 13
this subdivision: 14
(i) If the district's or public school academy's membership for 15
pupils counted under section 166b equals or exceeds 5% of the 16
district's or public school academy's membership for pupils not 17
counted in membership under section 166b in the immediately 18
preceding fiscal year, then the growth in the district's or public 19
school academy's membership for pupils counted under section 166b 20
must not exceed 10%. 21
(ii) If the district's or public school academy's membership 22
for pupils counted under section 166b is less than 5% of the 23
district's or public school academy's membership for pupils not 24
counted in membership under section 166b in the immediately 25
preceding fiscal year, then the district's or public school 26
academy's membership for pupils counted under section 166b must not 27
exceed the greater of the following: 28
(A) Five percent of the district's or public school academy's 29
25
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
membership for pupils not counted in membership under section 166b. 1
(B) Ten percent more than the district's or public school 2
academy's membership for pupils counted under section 166b in the 3
immediately preceding fiscal year. 4
(iii) If 1 or more districts consolidate or are parties to an 5
annexation, then the calculations under subparagraphs (i) and (ii) 6
must be applied to the combined total membership for pupils counted 7
in those districts for the fiscal year immediately preceding the 8
consolidation or annexation. 9
(5) "Public school academy" means that term as defined in 10
section 5 of the revised school code, MCL 380.5. 11
(6) "Pupil" means an individual in membership in a public 12
school. A district must have the approval of the pupil's district 13
of residence to count the pupil in membership, except approval by 14
the pupil's district of residence is not required for any of the 15
following: 16
(a) A nonpublic part-time pupil enrolled in grades K to 12 in 17
accordance with section 166b. 18
(b) A pupil receiving 1/2 or less of the pupil's instruction 19
in a district other than the pupil's district of residence. 20
(c) A pupil enrolled in a public school academy. 21
(d) A pupil enrolled in a district other than the pupil's 22
district of residence if the pupil is enrolled in accordance with 23
section 105 or 105c. 24
(e) A pupil who has made an official written complaint or 25
whose parent or legal guardian has made an official written 26
complaint to law enforcement officials and to school officials of 27
the pupil's district of residence that the pupil has been the 28
victim of a criminal sexual assault or other serious assault, if 29
26
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
the official complaint either indicates that the assault occurred 1
at school or that the assault was committed by 1 or more other 2
pupils enrolled in the school the pupil would otherwise attend in 3
the district of residence or by an employee of the district of 4
residence. A person who intentionally makes a false report of a 5
crime to law enforcement officials for the purposes of this 6
subdivision is subject to section 411a of the Michigan penal code, 7
1931 PA 328, MCL 750.411a, which provides criminal penalties for 8
that conduct. As used in this subdivision: 9
(i) "At school" means in a classroom, elsewhere on school 10
premises, on a school bus or other school-related vehicle, or at a 11
school-sponsored activity or event whether or not it is held on 12
school premises. 13
(ii) "Serious assault" means an act that constitutes a felony 14
violation of chapter XI of the Michigan penal code, 1931 PA 328, 15
MCL 750.81 to 750.90h, 750.90g, or that constitutes an assault and 16
infliction of serious or aggravated injury under section 81a of the 17
Michigan penal code, 1931 PA 328, MCL 750.81a. 18
(f) A pupil whose district of residence changed after the 19
pupil membership count day and before the supplemental count day 20
and who continues to be enrolled on the supplemental count day as a 21
nonresident in the district in which the pupil was enrolled as a 22
resident on the pupil membership count day of the same school year. 23
(g) A pupil enrolled in an alternative education program 24
operated by a district other than the pupil's district of residence 25
who meets 1 or more of the following: 26
(i) The pupil has been suspended or expelled from the pupil's 27
district of residence for any reason, including, but not limited 28
to, a suspension or expulsion under section 1310, 1311, or 1311a of 29
27
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
the revised school code, MCL 380.1310, 380.1311, and 380.1311a. 1
(ii) The pupil had previously dropped out of school. 2
(iii) The pupil is pregnant or is a parent. 3
(iv) The pupil has been referred to the program by a court. 4
(h) A pupil enrolled in the Michigan Virtual School, for the 5
pupil's enrollment in the Michigan Virtual School. 6
(i) A pupil who is the child of a person who works at the 7
district or who is the child of a person who worked at the district 8
as of the time the pupil first enrolled in the district but who no 9
longer works at the district due to a workforce reduction. As used 10
in this subdivision, "child" includes an adopted child, stepchild, 11
or legal ward. 12
(j) An expelled pupil who has been denied reinstatement by the 13
expelling district and is reinstated by another school board under 14
section 1311 or 1311a of the revised school code, MCL 380.1311 and 15
380.1311a. 16
(k) A pupil enrolled in a district other than the pupil's 17
district of residence in a middle college program if the pupil's 18
district of residence and the enrolling district are both 19
constituent districts of the same intermediate district. 20
(l) A pupil enrolled in a district other than the pupil's 21
district of residence who attends a United States Olympic Education 22
Center. 23
(m) A pupil enrolled in a district other than the pupil's 24
district of residence under section 1148(2) of the revised school 25
code, MCL 380.1148. 26
(n) A pupil who enrolls in a district other than the pupil's 27
district of residence as a result of the pupil's school not making 28
adequate yearly progress under the no child left behind act of 29
28
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
2001, Public Law 107-110, or the every student succeeds act, Public 1
Law 114-95. 2
However, if a district educates pupils who reside in another 3
district and if the primary instructional site for those pupils is 4
established by the educating district after 2009-2010 and is 5
located within the boundaries of that other district, the educating 6
district must have the approval of that other district to count 7
those pupils in membership. 8
(7) "Pupil membership count day" of a district or intermediate 9
district means: 10
(a) Except as provided in subdivision (b) or (c), either of 11
the following: 12
(i) The first Wednesday in October each school year. 13
(ii) For a district or building in which school is not in 14
session on the Wednesday described in subparagraph (i) due to 15
conditions not within the control of school authorities, with the 16
approval of the superintendent, the immediately following day on 17
which school is in session in the district or building. 18
(b) Except as otherwise provided in subdivision (c), for a 19
district or intermediate district maintaining school during the 20
entire school year, the following days: 21
(i) Fourth Wednesday in July. 22
(ii) First Wednesday in October. 23
(iii) Second Wednesday in February. 24
(iv) Fourth Wednesday in April. 25
(c) If a date listed in subdivision (a) or (b) is on a day of 26
religious or cultural significance, as determined by the district 27
or intermediate district, the immediately following day on which 28
school is in session in the district or building. 29
29
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(8) "Pupils in grades K to 12 actually enrolled and in regular 1
daily attendance" means, except as otherwise provided in this 2
section, pupils in grades K to 12 in attendance and receiving 3
instruction in all classes for which they are enrolled on the pupil 4
membership count day or the supplemental count day, as applicable. 5
Except as otherwise provided in this section and subsection, a 6
pupil who is absent from any of the classes in which the pupil is 7
enrolled on the pupil membership count day or supplemental count 8
day and who does not attend each of those classes during the 10 9
consecutive school days immediately following the pupil membership 10
count day or supplemental count day, except for a pupil who has 11
been excused by the district, is not counted as 1.0 full-time 12
equated membership. Except as otherwise provided in this section, a 13
pupil who is excused from attendance on the pupil membership count 14
day or supplemental count day and who fails to attend each of the 15
classes in which the pupil is enrolled within 30 calendar days 16
after the pupil membership count day or supplemental count day is 17
not counted as 1.0 full-time equated membership. Except as 18
otherwise provided in this section, in addition, a pupil who was 19
enrolled and in attendance in a district, intermediate district, or 20
public school academy before the pupil membership count day or 21
supplemental count day of a particular year but was expelled or 22
suspended on the pupil membership count day or supplemental count 23
day is only counted as 1.0 full-time equated membership if the 24
pupil resumed attendance in the district, intermediate district, or 25
public school academy within 45 days after the pupil membership 26
count day or supplemental count day of that particular year. Except 27
as otherwise provided in this section, a pupil not counted as 1.0 28
full-time equated membership due to an absence from a class is 29
30
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
counted as a prorated membership for the classes the pupil 1
attended. For purposes of this subsection: 2
(a) "Appropriately placed" means holding a valid Michigan 3
educator credential with the required grade range and discipline or 4
subject area for the assignment, as defined by the superintendent 5
of public instruction. 6
(b) "Class" means either of the following, as applicable: 7
(i) A a period of time in 1 day when pupils and an individual 8
who is appropriately placed under a valid certificate, substitute 9
permit, authorization, or approval issued by the department, are 10
together and instruction is taking place. This subdivision does not 11
apply for the 2024-2025 and 2025-2026 school years. 12
(ii) For the 2024-2025 and 2025-2026 school years only, a 13
period of time in 1 day when pupils and a certificated teacher, a 14
teacher engaged to teach under section 1233b of the revised school 15
code, MCL 380.1233b, or an individual working under a valid 16
substitute permit, authorization, or approval issued by the 17
department are together and instruction is taking place. 18
(9) "Rule" means a rule promulgated pursuant to the 19
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 20
24.328. 21
(10) "The revised school code" means the revised school code, 22
1976 PA 451, MCL 380.1 to 380.1852. 23
(11) "School district of the first class", "first class school 24
district", and "district of the first class" mean, for the purposes 25
of this article only, a district that had at least 40,000 pupils in 26
membership for the immediately preceding fiscal year. 27
(12) "School fiscal year" means a fiscal year that commences 28
July 1 and continues through June 30. 29
31
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(13) "State board" means the state board of education. 1
(14) "Superintendent", unless the context clearly refers to a 2
district or intermediate district superintendent, means the 3
superintendent of public instruction described in section 3 of 4
article VIII of the state constitution of 1963. 5
(15) "Supplemental count day" means the day on which the 6
supplemental pupil count is conducted under section 6a. 7
(16) "Tuition pupil" means a pupil of school age attending 8
school in a district other than the pupil's district of residence 9
for whom tuition may be charged to the district of residence. 10
Tuition pupil does not include a pupil who is a special education 11
pupil, a pupil described in subsection (6)(d) to (n), or a pupil 12
whose parent or guardian voluntarily enrolls the pupil in a 13
district that is not the pupil's district of residence. A pupil's 14
district of residence shall not require a high school tuition 15
pupil, as provided under section 111, to attend another school 16
district after the pupil has been assigned to a school district. 17
(17) "State school aid fund" means the state school aid fund 18
established in section 11 of article IX of the state constitution 19
of 1963. 20
(18) "Taxable value" means, except as otherwise provided in 21
this article, the taxable value of property as determined under 22
section 27a of the general property tax act, 1893 PA 206, MCL 23
211.27a. 24
(19) "Textbook" means a book, electronic book, or other 25
instructional print or electronic resource that is selected and 26
approved by the governing board of a district and that contains a 27
presentation of principles of a subject, or that is a literary work 28
relevant to the study of a subject required for the use of 29
32
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
classroom pupils, or another type of course material that forms the 1
basis of classroom instruction. 2
(20) "Total state aid" or "total state school aid", except as 3
otherwise provided in this article, means the total combined amount 4
of all funds due to a district, intermediate district, or other 5
entity under this article. 6
(21) "Weighted pupil membership" means that term as calculated 7
in this subsection. For the purposes of calculations under this 8
subsection, the base weighted pupil membership for a district is 0. 9
All of the following apply to the weighted pupil membership under 10
this subsection: 11
(a) For each full-time English language learner counted in 12
membership in a district in the immediately preceding fiscal year, 13
the weighted pupil membership for that district must be increased 14
as follows: 15
(i) For a full-time equivalent English language learner who was 16
assessed in the immediately preceding fiscal year under the WIDA 17
ACCESS for English language learners or the WIDA Alternate ACCESS 18
with a WIDA ACCESS or WIDA Alternate ACCESS composite score between 19
1.0 and 1.9, as applicable to each assessment, an increase of 20
0.1990. The increase under this subparagraph must be adjusted 21
annually as follows until the increase equals 0.75: 22
(A) For 2027-2028, the weighted pupil membership under this 23
subparagraph must be increased to 0.2384. 24
(B) For 2028-2029, the weighted pupil membership under this 25
subparagraph must be increased to 0.2778. 26
(C) For 2029-2030, the weighted pupil membership under this 27
subparagraph must be increased to 0.3171. 28
(D) For 2030-2031, the weighted pupil membership under this 29
33
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
subparagraph must be increased to 0.3565. 1
(E) For 2031-2032, the weighted pupil membership under this 2
subparagraph must be increased to 0.3959. 3
(F) For 2032-2033, the weighted pupil membership under this 4
subparagraph must be increased to 0.4353. 5
(G) For 2033-2034, the weighted pupil membership under this 6
subparagraph must be increased to 0.4746. 7
(H) For 2034-2035, the weighted pupil membership under this 8
subparagraph must be increased to 0.5140. 9
(I) For 2035-2036, the weighted pupil membership under this 10
subparagraph must be increased to 0.5534. 11
(J) For 2036-2037, the weighted pupil membership under this 12
subparagraph must be increased to 0.5928. 13
(K) For 2037-2038, the weighted pupil membership under this 14
subparagraph must be increased to 0.6321. 15
(L) For 2038-2039, the weighted pupil membership under this 16
subparagraph must be increased to 0.6715. 17
(M) For 2039-2040, the weighted pupil membership under this 18
subparagraph must be increased to 0.7109. 19
(N) Beginning in 2040-2041 and every fiscal year thereafter, 20
the weighted pupil membership under this subparagraph must be 21
increased to 0.75. 22
(ii) For a full-time equivalent English language learner who 23
was assessed in the immediately preceding fiscal year under the 24
WIDA ACCESS for English language learners or the WIDA Alternate 25
ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score 26
between 2.0 and 2.9, as applicable to each assessment, an increase 27
of 0.1374. The increase under this subparagraph must be adjusted 28
annually as follows until the increase equals 0.50: 29
34
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(A) For 2027-2028, the weighted pupil membership under this 1
subparagraph must be increased to 0.1636. 2
(B) For 2028-2029, the weighted pupil membership under this 3
subparagraph must be increased to 0.1899. 4
(C) For 2029-2030, the weighted pupil membership under this 5
subparagraph must be increased to 0.2161. 6
(D) For 2030-2031, the weighted pupil membership under this 7
subparagraph must be increased to 0.2424. 8
(E) For 2031-2032, the weighted pupil membership under this 9
subparagraph must be increased to 0.2686. 10
(F) For 2032-2033, the weighted pupil membership under this 11
subparagraph must be increased to 0.2949. 12
(G) For 2033-2034, the weighted pupil membership under this 13
subparagraph must be increased to 0.3211. 14
(H) For 2034-2035, the weighted pupil membership under this 15
subparagraph must be increased to 0.3474. 16
(I) For 2035-2036, the weighted pupil membership under this 17
subparagraph must be increased to 0.3736. 18
(J) For 2036-2037, the weighted pupil membership under this 19
subparagraph must be increased to 0.3999. 20
(K) For 2037-2038, the weighted pupil membership under this 21
subparagraph must be increased to 0.4261. 22
(L) For 2038-2039, the weighted pupil membership under this 23
subparagraph must be increased to 0.4524. 24
(M) For 2039-2040, the weighted pupil membership under this 25
subparagraph must be increased to 0.4786. 26
(N) Beginning in 2040-2041 and every fiscal year thereafter, 27
the weighted pupil membership under this subparagraph must be 28
increased to 0.50. 29
35
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(iii) For a full-time equivalent English language learner who 1
was assessed in the immediately preceding fiscal year under the 2
WIDA ACCESS for English language learners or the WIDA Alternate 3
ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score 4
between 3.0 and 4.7, as applicable to each assessment, an increase 5
of 0.0224. The increase under this subparagraph must be adjusted 6
annually as follows until the increase equals 0.35: 7
(A) For 2027-2028, the weighted pupil membership under this 8
subparagraph must be increased to 0.0464. 9
(B) For 2028-2029, the weighted pupil membership under this 10
subparagraph must be increased to 0.0703. 11
(C) For 2029-2030, the weighted pupil membership under this 12
subparagraph must be increased to 0.0943. 13
(D) For 2030-2031, the weighted pupil membership under this 14
subparagraph must be increased to 0.1183. 15
(E) For 2031-2032, the weighted pupil membership under this 16
subparagraph must be increased to 0.1423. 17
(F) For 2032-2033, the weighted pupil membership under this 18
subparagraph must be increased to 0.1662. 19
(G) For 2033-2034, the weighted pupil membership under this 20
subparagraph must be increased to 0.1902. 21
(H) For 2034-2035, the weighted pupil membership under this 22
subparagraph must be increased to 0.2142. 23
(I) For 2035-2036, the weighted pupil membership under this 24
subparagraph must be increased to 0.2382. 25
(J) For 2036-2037, the weighted pupil membership under this 26
subparagraph must be increased to 0.2621. 27
(K) For 2037-2038, the weighted pupil membership under this 28
subparagraph must be increased to 0.2861. 29
36
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(L) For 2038-2039, the weighted pupil membership under this 1
subparagraph must be increased to 0.3101. 2
(M) For 2039-2040, the weighted pupil membership under this 3
subparagraph must be increased to 0.3341. 4
(N) Beginning in 2040-2041 and every fiscal year thereafter, 5
the weighted pupil membership under this subparagraph must be 6
increased to 0.35. 7
(b) For each economically disadvantaged pupil counted in 8
membership in a district, the weighted pupil membership for that 9
district must be increased as follows: 10
(i) For the purpose of this subparagraph, the department shall 11
determine the number of pupils in membership who are economically 12
disadvantaged as the greatest of the following: 13
(A) The number of membership pupils in the district who are 14
determined to be economically disadvantaged, as reported to the 15
center in the form and manner prescribed by the center not later 16
than the fifth Wednesday after the pupil membership count day of 17
the immediately preceding fiscal year. 18
(B) If the district is in the community eligibility program, 19
the number of pupils determined to be eligible based on the product 20
of the identified student percentage multiplied by the total number 21
of pupils in the district, as reported to the center in the form 22
and manner prescribed by the center not later than the fifth 23
Wednesday after the pupil membership count day of the immediately 24
preceding fiscal year. These calculations must be made at the 25
building level. This sub-subparagraph applies only to an eligible 26
district for the fiscal year immediately following the first fiscal 27
year in which it is in the community eligibility program. As used 28
in this sub-subparagraph, "identified student percentage" means the 29
37
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
quotient of the number of pupils in an eligible district who are 1
determined to be economically disadvantaged, as reported to the 2
center in a form and manner prescribed by the center not later than 3
the fifth Wednesday after the pupil membership count day in the 4
fiscal year preceding the first fiscal year in which the eligible 5
district is in the community eligibility program, divided by the 6
total number of pupils counted in an eligible district on the pupil 7
membership count day in the fiscal year preceding the first fiscal 8
year in which the eligible district is in the community eligibility 9
program. 10
(C) If the district began operations as a district after the 11
pupil membership count day of the current fiscal year, the number 12
of membership pupils in the district who are determined to be 13
economically disadvantaged, as reported to the center in the form 14
and manner prescribed by the center not later than the fifth 15
Wednesday after the supplemental count day of the current fiscal 16
year. 17
(D) If, for a particular fiscal year, the number of membership 18
pupils in a district who are determined under sub-subparagraph (A) 19
to be economically disadvantaged or to be eligible based on the 20
identified student percentage varies by more than 20 percentage 21
points from the number of those pupils in the district as 22
calculated under sub-subparagraph (A) for the immediately preceding 23
fiscal year caused by an egregious reporting error by the district, 24
the department may choose to have the calculations under sub-25
subparagraph (A) instead be made using the number of membership 26
pupils in the district who are determined to be economically 27
disadvantaged, as reported to the center in the form and manner 28
prescribed by the center not later than the fifth Wednesday after 29
38
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
the supplemental count day of the immediately preceding fiscal 1
year. 2
(ii) Each district or public school academy must be assigned an 3
opportunity index score each fiscal year, the value of which is the 4
quotient of the number of economically disadvantaged pupils as 5
determined under this subdivision for the district or public school 6
academy and the total number of pupils in the district or public 7
school academy in the immediately preceding fiscal year, multiplied 8
by 100 and rounded up to the nearest whole number. Each district or 9
public school academy must be assigned an opportunity index band as 10
follows: 11
(A) A district with an opportunity index score greater than or 12
equal to 0 but less than 20 must be assigned to band 1 and shall 13
receive an additional weighted pupil membership of at least 0.1994 14
and not more than 0.2051 for each economically disadvantaged pupil. 15
The additional weighted pupil membership under this sub-16
subparagraph must be an amount equal to the district's opportunity 17
index score minus 1, multiplied by the band adjustment factor 18
applicable to this subdivision, plus 0.1994 multiplied by the 19
number of pupils identified as economically disadvantaged under 20
this sub-subparagraph. The additional weighted pupil membership 21
under this sub-subparagraph must be increased as follows until it 22
reaches between 0.35 and 0.36 per economically disadvantaged pupil: 23
(I) For 2027-2028, a district assigned to band 1 must receive 24
an additional weighted pupil membership of at least 0.2101 and not 25
more than 0.2162 for each economically disadvantaged pupil. 26
(II) For 2028-2029, a district assigned to band 1 must receive 27
an additional weighted pupil membership of at least 0.2209 and not 28
more than 0.2272 for each economically disadvantaged pupil. 29
39
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(III) For 2029-2030, a district assigned to band 1 must 1
receive an additional weighted pupil membership of at least 0.2316 2
and not more than 0.2383 for each economically disadvantaged pupil. 3
(IV) For 2030-2031, a district assigned to band 1 must receive 4
an additional weighted pupil membership of at least 0.2424 and not 5
more than 0.2493 for each economically disadvantaged pupil. 6
(V) For 2031-2032, a district assigned to band 1 must receive 7
an additional weighted pupil membership of at least 0.2531 and not 8
more than 0.2604 for each economically disadvantaged pupil. 9
(VI) For 2032-2033, a district assigned to band 1 must receive 10
an additional weighted pupil membership of at least 0.2638 and not 11
more than 0.2714 for each economically disadvantaged pupil. 12
(VII) For 2033-2034, a district assigned to band 1 must 13
receive an additional weighted pupil membership of at least 0.2746 14
and not more than 0.2825 for each economically disadvantaged pupil. 15
(VIII) For 2034-2035, a district assigned to band 1 must 16
receive an additional weighted pupil membership of at least 0.2853 17
and not more than 0.2935 for each economically disadvantaged pupil. 18
(IX) For 2035-2036, a district assigned to band 1 must receive 19
an additional weighted pupil membership of at least 0.2961 and not 20
more than 0.3046 for each economically disadvantaged pupil. 21
(X) For 2036-2037, a district assigned to band 1 must receive 22
an additional weighted pupil membership of at least 0.3068 and not 23
more than 0.3156 for each economically disadvantaged pupil. 24
(XI) For 2037-2038, a district assigned to band 1 must receive 25
an additional weighted pupil membership of at least 0.3176 and not 26
more than 0.3267 for each economically disadvantaged pupil. 27
(XII) For 2038-2039, a district assigned to band 1 must 28
receive an additional weighted pupil membership of at least 0.3283 29
40
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
and not more than 0.3377 for each economically disadvantaged pupil. 1
(XIII) For 2039-2040, a district assigned to band 1 must 2
receive an additional weighted pupil membership of at least 0.3391 3
and not more than 0.3488 for each economically disadvantaged pupil. 4
(XIV) For 2040-2041 and every fiscal year thereafter, a 5
district assigned to band 1 must receive an additional weighted 6
pupil membership of at least 0.35 and not more than 0.36 for each 7
economically disadvantaged pupil. 8
(B) A district with an opportunity index score greater than or 9
equal to 20 but less than 44 must be assigned to band 2 and shall 10
receive an additional weighted pupil membership of at least 0.2051 11
and not more than 0.2136 for each economically disadvantaged pupil. 12
The additional weighted pupil membership under this sub-13
subparagraph must be an amount equal to the district's opportunity 14
index score minus 20, multiplied by the band adjustment factor 15
applicable to this subdivision, plus 0.2051 multiplied by the 16
number of pupils identified as economically disadvantaged under 17
this sub-subparagraph. The additional weighted pupil membership 18
under this sub-subparagraph must be increased as follows until it 19
reaches between 0.36 and 0.375 per economically disadvantaged 20
pupil: 21
(I) For 2027-2028, a district assigned to band 2 must receive 22
an additional weighted pupil membership of at least 0.2162 and not 23
more than 0.2251 for each economically disadvantaged pupil. 24
(II) For 2028-2029, a district assigned to band 2 must receive 25
an additional weighted pupil membership of at least 0.2272 and not 26
more than 0.2367 for each economically disadvantaged pupil. 27
(III) For 2029-2030, a district assigned to band 2 must 28
receive an additional weighted pupil membership of at least 0.2383 29
41
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
and not more than 0.2482 for each economically disadvantaged pupil. 1
(IV) For 2030-2031, a district assigned to band 2 must receive 2
an additional weighted pupil membership of at least 0.2493 and not 3
more than 0.2597 for each economically disadvantaged pupil. 4
(V) For 2031-2032, a district assigned to band 2 must receive 5
an additional weighted pupil membership of at least 0.2604 and not 6
more than 0.2712 for each economically disadvantaged pupil. 7
(VI) For 2032-2033, a district assigned to band 2 must receive 8
an additional weighted pupil membership of at least 0.2714 and not 9
more than 0.2827 for each economically disadvantaged pupil. 10
(VII) For 2033-2034, a district assigned to band 2 must 11
receive an additional weighted pupil membership of at least 0.2825 12
and not more than 0.2942 for each economically disadvantaged pupil. 13
(VIII) For 2034-2035, a district assigned to band 2 must 14
receive an additional weighted pupil membership of at least 0.2935 15
and not more than 0.3057 for each economically disadvantaged pupil. 16
(IX) For 2035-2036, a district assigned to band 2 must receive 17
an additional weighted pupil membership of at least 0.3046 and not 18
more than 0.3172 for each economically disadvantaged pupil. 19
(X) For 2036-2037, a district assigned to band 2 must receive 20
an additional weighted pupil membership of at least 0.3156 and not 21
more than 0.3288 for each economically disadvantaged pupil. 22
(XI) For 2037-2038, a district assigned to band 2 must receive 23
an additional weighted pupil membership of at least 0.3267 and not 24
more than 0.3403 for each economically disadvantaged pupil. 25
(XII) For 2038-2039, a district assigned to band 2 must 26
receive an additional weighted pupil membership of at least 0.3377 27
and not more than 0.3518 for each economically disadvantaged pupil. 28
(XIII) For 2039-2040, a district assigned to band 2 must 29
42
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
receive an additional weighted pupil membership of at least 0.3488 1
and not more than 0.3633 for each economically disadvantaged pupil. 2
(XIV) For 2040-2041 and every fiscal year thereafter, a 3
district assigned to band 2 must receive an additional weighted 4
pupil membership of at least 0.36 and not more than 0.375 for each 5
economically disadvantaged pupil. 6
(C) A district with an opportunity index score greater than or 7
equal to 44 but less than 59 must be assigned to band 3 and shall 8
receive an additional weighted pupil membership of at least 0.2136 9
and not more than 0.2223 for each economically disadvantaged pupil. 10
The additional weighted pupil membership under this sub-11
subparagraph must be an amount equal to the district's opportunity 12
index score minus 44, multiplied by the band adjustment factor 13
applicable to this subdivision, plus 0.2136 multiplied by the 14
number of pupils identified as economically disadvantaged under 15
this sub-subparagraph. The additional weighted pupil membership 16
under this sub-subparagraph must be increased as follows until it 17
reaches between 0.375 and 0.39 per economically disadvantaged 18
pupil: 19
(I) For 2027-2028, a district assigned to band 3 must receive 20
an additional weighted pupil membership of at least 0.2251 and not 21
more than 0.2342 for each economically disadvantaged pupil. 22
(II) For 2028-2029, a district assigned to band 3 must receive 23
an additional weighted pupil membership of at least 0.2367 and not 24
more than 0.2462 for each economically disadvantaged pupil. 25
(III) For 2029-2030, a district assigned to band 3 must 26
receive an additional weighted pupil membership of at least 0.2482 27
and not more than 0.2582 for each economically disadvantaged pupil. 28
(IV) For 2030-2031, a district assigned to band 3 must receive 29
43
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
an additional weighted pupil membership of at least 0.2597 and not 1
more than 0.2701 for each economically disadvantaged pupil. 2
(V) For 2031-2032, a district assigned to band 3 must receive 3
an additional weighted pupil membership of at least 0.2712 and not 4
more than 0.2821 for each economically disadvantaged pupil. 5
(VI) For 2032-2033, a district assigned to band 3 must receive 6
an additional weighted pupil membership of at least 0.2827 and not 7
more than 0.2941 for each economically disadvantaged pupil. 8
(VII) For 2033-2034, a district assigned to band 3 must 9
receive an additional weighted pupil membership of at least 0.2942 10
and not more than 0.3061 for each economically disadvantaged pupil. 11
(VIII) For 2034-2035, a district assigned to band 3 must 12
receive an additional weighted pupil membership of at least 0.3057 13
and not more than 0.3180 for each economically disadvantaged pupil. 14
(IX) For 2035-2036, a district assigned to band 3 must receive 15
an additional weighted pupil membership of at least 0.3172 and not 16
more than 0.3300 for each economically disadvantaged pupil. 17
(X) For 2036-2037, a district assigned to band 3 must receive 18
an additional weighted pupil membership of at least 0.3288 and not 19
more than 0.3420 for each economically disadvantaged pupil. 20
(XI) For 2037-2038, a district assigned to band 3 must receive 21
an additional weighted pupil membership of at least 0.3403 and not 22
more than 0.3540 for each economically disadvantaged pupil. 23
(XII) For 2038-2039, a district assigned to band 3 must 24
receive an additional weighted pupil membership of at least 0.3518 25
and not more than 0.3659 for each economically disadvantaged pupil. 26
(XIII) For 2039-2040, a district assigned to band 3 must 27
receive an additional weighted pupil membership of at least 0.3633 28
and not more than 0.3779 for each economically disadvantaged pupil. 29
44
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(XIV) For 2040-2041 and every fiscal year thereafter, a 1
district assigned to band 3 must receive an additional weighted 2
pupil membership of at least 0.375 and not more than 0.39 for each 3
economically disadvantaged pupil. 4
(D) A district with an opportunity index score greater than or 5
equal to 59 but less than 73 must be assigned to band 4 and shall 6
receive an additional weighted pupil membership of at least 0.2223 7
and not more than 0.2393 for each economically disadvantaged pupil. 8
The additional weighted pupil membership under this sub-9
subparagraph must be an amount equal to the district's opportunity 10
index score minus 59, multiplied by the band adjustment factor 11
applicable to this sub-subparagraph, plus 0.2223 multiplied by the 12
number of pupils identified as economically disadvantaged under 13
this sub-subparagraph. The additional weighted pupil membership 14
under this sub-subparagraph must be increased as follows until it 15
reaches between 0.39 and 0.42 per economically disadvantaged pupil: 16
(I) For 2027-2028, a district assigned to band 4 must receive 17
an additional weighted pupil membership of at least 0.2342 and not 18
more than 0.2521 for each economically disadvantaged pupil. 19
(II) For 2028-2029, a district assigned to band 4 must receive 20
an additional weighted pupil membership of at least 0.2462 and not 21
more than 0.2650 for each economically disadvantaged pupil. 22
(III) For 2029-2030, a district assigned to band 4 must 23
receive an additional weighted pupil membership of at least 0.2582 24
and not more than 0.2779 for each economically disadvantaged pupil. 25
(IV) For 2030-2031, a district assigned to band 4 must receive 26
an additional weighted pupil membership of at least 0.2701 and not 27
more than 0.2908 for each economically disadvantaged pupil. 28
(V) For 2031-2032, a district assigned to band 4 must receive 29
45
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
an additional weighted pupil membership of at least 0.2821 and not 1
more than 0.3037 for each economically disadvantaged pupil. 2
(VI) For 2032-2033, a district assigned to band 4 must receive 3
an additional weighted pupil membership of at least 0.2941 and not 4
more than 0.3166 for each economically disadvantaged pupil. 5
(VII) For 2033-2034, a district assigned to band 4 must 6
receive an additional weighted pupil membership of at least 0.3061 7
and not more than 0.3295 for each economically disadvantaged pupil. 8
(VIII) For 2034-2035, a district assigned to band 4 must 9
receive an additional weighted pupil membership of at least 0.3180 10
and not more than 0.3424 for each economically disadvantaged pupil. 11
(IX) For 2035-2036, a district assigned to band 4 must receive 12
an additional weighted pupil membership of at least 0.3300 and not 13
more than 0.3553 for each economically disadvantaged pupil. 14
(X) For 2036-2037, a district assigned to band 4 must receive 15
an additional weighted pupil membership of at least 0.3420 and not 16
more than 0.3682 for each economically disadvantaged pupil. 17
(XI) For 2037-2038, a district assigned to band 4 must receive 18
an additional weighted pupil membership of at least 0.3540 and not 19
more than 0.3811 for each economically disadvantaged pupil. 20
(XII) For 2038-2039, a district assigned to band 4 must 21
receive an additional weighted pupil membership of at least 0.3659 22
and not more than 0.3940 for each economically disadvantaged pupil. 23
(XIII) For 2039-2040, a district assigned to band 4 must 24
receive an additional weighted pupil membership of at least 0.3779 25
and not more than 0.4069 for each economically disadvantaged pupil. 26
(XIV) For 2040-2041 and every fiscal year thereafter, a 27
district assigned to band 3 must receive an additional weighted 28
pupil membership of at least 0.39 and not more than 0.42 for each 29
46
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
economically disadvantaged pupil. 1
(E) A district with an opportunity index score greater than or 2
equal to 73 but less than 85 must be assigned to band 5 and shall 3
receive an additional weighted pupil membership of at least 0.2393 4
and not more than 0.2679 for each economically disadvantaged pupil. 5
The additional weighted pupil membership under this sub-6
subparagraph must be an amount equal to the district's opportunity 7
index score minus 73, multiplied by the band adjustment factor 8
applicable to this sub-subparagraph, plus 0.2393 multiplied by the 9
number of pupils identified as economically disadvantaged under 10
this sub-subparagraph. The additional weighted pupil membership 11
under this sub-subparagraph must be increased as follows until it 12
reaches between 0.42 and 0.47 per economically disadvantaged pupil: 13
(I) For 2027-2028, a district assigned to band 5 must receive 14
an additional weighted pupil membership of at least 0.2521 and not 15
more than 0.2823 for each economically disadvantaged pupil. 16
(II) For 2028-2029, a district assigned to band 5 must receive 17
an additional weighted pupil membership of at least 0.2650 and not 18
more than 0.2967 for each economically disadvantaged pupil. 19
(III) For 2029-2030, a district assigned to band 5 must 20
receive an additional weighted pupil membership of at least 0.2779 21
and not more than 0.3112 for each economically disadvantaged pupil. 22
(IV) For 2030-2031, a district assigned to band 5 must receive 23
an additional weighted pupil membership of at least 0.2908 and not 24
more than 0.3256 for each economically disadvantaged pupil. 25
(V) For 2031-2032, a district assigned to band 5 must receive 26
an additional weighted pupil membership of at least 0.3037 and not 27
more than 0.3400 for each economically disadvantaged pupil. 28
(VI) For 2032-2033, a district assigned to band 5 must receive 29
47
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
an additional weighted pupil membership of at least 0.3166 and not 1
more than 0.3544 for each economically disadvantaged pupil. 2
(VII) For 2033-2034, a district assigned to band 5 must 3
receive an additional weighted pupil membership of at least 0.3295 4
and not more than 0.3689 for each economically disadvantaged pupil. 5
(VIII) For 2034-2035, a district assigned to band 5 must 6
receive an additional weighted pupil membership of at least 0.3424 7
and not more than 0.3833 for each economically disadvantaged pupil. 8
(IX) For 2035-2036, a district assigned to band 5 must receive 9
an additional weighted pupil membership of at least 0.3553 and not 10
more than 0.3977 for each economically disadvantaged pupil. 11
(X) For 2036-2037, a district assigned to band 5 must receive 12
an additional weighted pupil membership of at least 0.3682 and not 13
more than 0.4122 for each economically disadvantaged pupil. 14
(XI) For 2037-2038, a district assigned to band 5 must receive 15
an additional weighted pupil membership of at least 0.3811 and not 16
more than 0.4266 for each economically disadvantaged pupil. 17
(XII) For 2038-2039, a district assigned to band 5 must 18
receive an additional weighted pupil membership of at least 0.3940 19
and not more than 0.4410 for each economically disadvantaged pupil. 20
(XIII) For 2039-2040, a district assigned to band 5 must 21
receive an additional weighted pupil membership of at least 0.4069 22
and not more than 0.4555 for each economically disadvantaged pupil. 23
(XIV) For 2040-2041 and every fiscal year thereafter, a 24
district assigned to band 5 must receive an additional weighted 25
pupil membership of at least 0.42 and not more than 0.47 for each 26
economically disadvantaged pupil. 27
(F) A district with an opportunity index score greater than or 28
equal to 85 must be assigned to band 6 and shall receive an 29
48
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
additional weighted pupil membership at a rate of 0.2679 for each 1
economically disadvantaged pupil. It is intended that the 2
additional weighted pupil membership under this sub-subparagraph 3
will be increased as follows until it reaches 0.47 per economically 4
disadvantaged pupil: 5
(I) For 2027-2028, a district assigned to band 6 must receive 6
an additional weighted pupil membership of 0.2823 for each 7
economically disadvantaged pupil. 8
(II) For 2028-2029, a district assigned to band 6 must receive 9
an additional weighted pupil membership of 0.2967 for each 10
economically disadvantaged pupil. 11
(III) For 2029-2030, a district assigned to band 6 must 12
receive an additional weighted pupil membership of 0.3112 for each 13
economically disadvantaged pupil. 14
(IV) For 2030-2031, a district assigned to band 6 must receive 15
an additional weighted pupil membership of 0.3256 for each 16
economically disadvantaged pupil. 17
(V) For 2031-2032, a district assigned to band 6 must receive 18
an additional weighted pupil membership of 0.3400 for each 19
economically disadvantaged pupil. 20
(VI) For 2032-2033, a district assigned to band 6 must receive 21
an additional weighted pupil membership of 0.3544 for each 22
economically disadvantaged pupil. 23
(VII) For 2033-2034, a district assigned to band 6 must 24
receive an additional weighted pupil membership of 0.3689 for each 25
economically disadvantaged pupil. 26
(VIII) For 2034-2035, a district assigned to band 6 must 27
receive an additional weighted pupil membership of 0.3833 for each 28
economically disadvantaged pupil. 29
49
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(IX) For 2035-2036, a district assigned to band 6 must receive 1
an additional weighted pupil membership of 0.3977 for each 2
economically disadvantaged pupil. 3
(X) For 2036-2037, a district assigned to band 6 must receive 4
an additional weighted pupil membership of 0.4122 for each 5
economically disadvantaged pupil. 6
(XI) For 2037-2038, a district assigned to band 6 must receive 7
an additional weighted pupil membership of 0.4266 for each 8
economically disadvantaged pupil. 9
(XII) For 2038-2039, a district assigned to band 6 must 10
receive an additional weighted pupil membership of 0.4410 for each 11
economically disadvantaged pupil. 12
(XIII) For 2039-2040, a district assigned to band 6 must 13
receive an additional weighted pupil membership of 0.4555 for each 14
economically disadvantaged pupil. 15
(XIV) For 2040-2041 and every fiscal year thereafter, a 16
district assigned to band 6 must receive an additional weighted 17
pupil membership of 0.47 for each economically disadvantaged pupil. 18
(G) As used in this subparagraph, "band adjustment factor" 19
means an amount equal to the difference between the lowest and 20
highest reimbursement bounds for each band, divided by the number 21
of possible opportunity index scores in that band. 22
(c) To assist the legislature in determining necessary funding 23
levels to support foundation allowance payments for weighted pupil 24
membership calculated in this subsection, each revenue estimating 25
conference conducted under section 367b of the management and 26
budget act, 1984 PA 431, MCL 18.1367b, must include estimated pupil 27
counts necessary to determine a weighted pupil membership under 28
this subsection for the current and subsequent 2 fiscal years. 29
50
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(d) As used in this subsection: 1
(i) "Economically disadvantaged" means a pupil who has been 2
determined eligible for free or reduced-price meals as determined 3
under the Richard B. Russell national school lunch act, 42 USC 1751 4
to 1769j; who is in a household receiving supplemental nutrition 5
assistance program or temporary assistance for needy families 6
assistance; or who is homeless, migrant, or in foster care, as 7
reported to the center. 8
(ii) "English language learner" means limited English 9
proficient pupils who speak a language other than English as their 10
primary language and have difficulty speaking, reading, writing, or 11
understanding English as reported to the center. 12
Sec. 11. (1) For the fiscal year ending September 30, 2025, 13
there is appropriated for the public schools of this state and 14
certain other state purposes relating to education the sum of 15
$17,936,546,300.00 from the state school aid fund, the sum of 16
$78,830,600.00 from the general fund, an amount not to exceed 17
$41,000,000.00 from the community district education trust fund 18
created under section 12 of the Michigan trust fund act, 2000 PA 19
489, MCL 12.262, an amount not to exceed $125,000,000.00 from the 20
school transportation fund created under section 22k, an amount not 21
to exceed $71,000,000.00 from the enrollment stabilization fund 22
created under section 29, an amount not to exceed $30,000,000.00 23
from the school meals reserve fund created under section 30e, an 24
amount not to exceed $18,000,000.00 from the great start readiness 25
program reserve fund created under section 32e, an amount not to 26
exceed $481,400,000.00 from the MPSERS retirement obligation reform 27
reserve fund created under section 147b, and an amount not to 28
exceed $30,000,000.00 from the educator fellowship public provider 29
51
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
fund created in section 27d. For the fiscal year ending September 1
30, 2026, there is appropriated for the public schools of this 2
state and certain other state purposes relating to education the 3
sum of $18,366,334,700.00 $18,189,425,300.00 from the state school 4
aid fund, the sum of $73,151,100.00 from the general fund, an 5
amount not to exceed $100,000,000.00 from the school consolidation 6
and infrastructure fund created under section 11x, an amount not to 7
exceed $125,000,000.00 from the school transportation fund created 8
under section 22k, an amount not to exceed $71,000,000.00 from the 9
enrollment stabilization fund created under section 29, an amount 10
not to exceed $18,000,000.00 from the great start readiness program 11
reserve fund created under section 32e, an amount not to exceed 12
$30,000,000.00 from the educator fellowship public provider fund 13
created under section 27d, an amount not to exceed $97,037,400.00 14
from the state school aid pupil support reserve fund created under 15
section 22r, and an amount not to exceed $600,000.00 from the 16
general pupil support reserve fund created under section 22s. For 17
the fiscal year ending September 30, 2027, there is appropriated 18
for the public schools of this state and certain other state 19
purposes relating to education the sum of $19,143,728,500.00 from 20
the state school aid fund, the sum of $50,834,900.00 from the 21
general fund, an amount not to exceed $125,000,000.00 from the 22
school transportation fund created under section 22k, an amount not 23
to exceed $130,000,000.00 from the enrollment stabilization fund 24
created under section 29, an amount not to exceed $18,000,000.00 25
from the great start readiness program reserve fund created under 26
section 32e, an amount not to exceed $30,000,000.00 from the 27
educator fellowship public provider fund created under section 27d, 28
an amount not to exceed $119,037,400.00 from the state school aid 29
52
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
pupil support reserve fund created under section 22r, and an amount 1
not to exceed $720,000.00 from the general pupil support reserve 2
fund created under section 22s. In addition, all available federal 3
funds are only appropriated as allocated in this article for the 4
fiscal years ending September 30, 2025 and September 30, 2026 and 5
September 30, 2027. 6
(2) The appropriations under this section are allocated as 7
provided in this article. Money appropriated under this section 8
from the general fund must be expended to fund the purposes of this 9
article before the expenditure of money appropriated under this 10
section from the state school aid fund. 11
(3) Any general fund allocations under this article that are 12
not expended by the end of the fiscal year are transferred to the 13
school aid stabilization fund created under section 11a. 14
Sec. 11a. (1) The school aid stabilization fund is created as 15
a separate account within the state school aid fund. 16
(2) The state treasurer may receive money or other assets from 17
any source for deposit into the school aid stabilization fund. The 18
state treasurer shall deposit into the school aid stabilization 19
fund all of the following: 20
(a) Unexpended and unencumbered state school aid fund revenue 21
for a fiscal year that remains in the state school aid fund as of 22
the bookclosing for that fiscal year. 23
(b) Money statutorily dedicated to the school aid 24
stabilization fund. 25
(c) Money appropriated to the school aid stabilization fund. 26
(3) Money available in the school aid stabilization fund may 27
not be expended without a specific appropriation from the school 28
aid stabilization fund. Money in the school aid stabilization fund 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
must be expended only for purposes for which state school aid fund 1
money may be expended. 2
(4) The state treasurer shall direct the investment of the 3
school aid stabilization fund. The state treasurer shall credit to 4
the school aid stabilization fund interest and earnings from fund 5
investments. 6
(5) Money in the school aid stabilization fund at the close of 7
a fiscal year remains in the school aid stabilization fund and does 8
not lapse to the unreserved school aid fund balance or the general 9
fund. 10
(6) If the maximum amount appropriated under section 11 from 11
the state school aid fund for a fiscal year exceeds the amount 12
available for expenditure from the state school aid fund for that 13
fiscal year, there is appropriated from the school aid 14
stabilization fund to the state school aid fund an amount equal to 15
the projected shortfall as determined by the department of 16
treasury, but not to exceed available money in the school aid 17
stabilization fund. If the money in the school aid stabilization 18
fund is insufficient to fully fund an amount equal to the projected 19
shortfall, the state budget director shall notify the legislature 20
as required under section 296(2) and state payments in an amount 21
equal to the remainder of the projected shortfall must be prorated 22
in the manner provided under section 296(3). 23
(7) For 2025-2026 2026-2027, in addition to the appropriations 24
in section 11, there is appropriated from the school aid 25
stabilization fund to the state school aid fund the amount 26
necessary to fully fund the allocations under this article. 27
Sec. 11j. From the state school aid fund money appropriated in 28
section 11, there is allocated an amount not to exceed 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
$23,000,000.00 for 2025-2026 2026-2027 for payments to the school 1
loan bond redemption fund in the department of treasury on behalf 2
of districts and intermediate districts. Notwithstanding section 3
296 or any other provision of this act, funds allocated under this 4
section are not subject to proration and must be paid in full. 5
Sec. 11k. For 2025-2026, 2026-2027, there is appropriated from 6
the general fund to the school loan revolving fund an amount equal 7
to the amount of school bond loans assigned to the Michigan finance 8
authority, not to exceed the total amount of school bond loans held 9
in reserve as long-term assets. As used in this section, "school 10
loan revolving fund" means that fund created in section 16c of the 11
shared credit rating act, 1985 PA 227, MCL 141.1066c. 12
Sec. 11m. From the state school aid fund money appropriated in 13
section 11, there is allocated for 2025-2026 2026-2027 an amount 14
not to exceed $5,000,000.00 for fiscal year cash-flow borrowing 15
costs solely related to the state school aid fund established under 16
section 11 of article IX of the state constitution of 1963. 17
Sec. 11s. (1) From the state school aid fund money 18
appropriated in section 11, there is allocated $5,000,000.00 for 19
2025-2026 2026-2027 only and from the general fund money 20
appropriated in section 11, there is allocated $3,000,000.00 for 21
2025-2026 2026-2027 only for the purpose of providing services and 22
programs to children who reside within the boundaries of a district 23
with the majority of its territory located within the boundaries of 24
a city for which an executive proclamation of emergency concerning 25
drinking water is issued in the current or immediately preceding 10 26
fiscal years under the emergency management act, 1976 PA 390, MCL 27
30.401 to 30.421, and that has at least 4,500 pupils in membership 28
for the 2016-2017 fiscal year or has at least 2,600 pupils in 29
55
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
membership for a fiscal year after 2016-2017. 1
(2) From the general fund money allocated in subsection (1), 2
there is allocated to a district with the majority of its territory 3
located within the boundaries of a city for which an executive 4
proclamation of emergency concerning drinking water is issued in 5
the current or immediately preceding 10 fiscal years under the 6
emergency management act, 1976 PA 390, MCL 30.401 to 30.421, and 7
that has at least 4,500 pupils in membership for the 2016-2017 8
fiscal year or has at least 2,600 pupils in membership for a fiscal 9
year after 2016-2017, an amount not to exceed $2,425,000.00 for 10
2025-2026 2026-2027 for the purpose of employing school nurses, 11
classroom aides, school social workers, and community health 12
workers; for the provision of behavioral or mental health supports, 13
parental engagement activities, community coordination activities, 14
and other support services; and for purchasing program supplies. 15
The district shall provide a report to the department in a form, 16
manner, and frequency prescribed by the department. The department 17
shall provide a copy of that report to the governor, the house and 18
senate school aid subcommittees, the house and senate fiscal 19
agencies, and the state budget director within 5 days after 20
receipt. The report must provide at least the following 21
information: 22
(a) How many personnel were hired using the funds allocated 23
under this subsection. 24
(b) A description of the services provided to pupils by those 25
personnel. 26
(c) How many pupils received each type of service identified 27
in subdivision (b). 28
(d) Any other information the department considers necessary 29
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to ensure that the children described in subsection (1) received 1
appropriate levels and types of services. 2
(3) For 2025-2026 2026-2027 only, from the general fund money 3
allocated in subsection (1), there is allocated an amount not to 4
exceed $575,000.00 for nutritional services to children described 5
in subsection (1). 6
(4) For 2025-2026 2026-2027 only, from the state school aid 7
fund money allocated in subsection (1), there is allocated an 8
amount not to exceed $5,000,000.00 to an intermediate district that 9
has a constituent district described in subsection (2) for 10
interventions and supports for students in grades K to 12 who were 11
impacted by an executive proclamation of emergency described in 12
subsection (1) concerning drinking water. Funds under this 13
subsection must be used for behavioral supports, social workers, 14
counselors, psychologists, nursing services, including, but not 15
limited to, vision and hearing services, transportation services, 16
parental engagement, community coordination, and other support 17
services. 18
(5) Notwithstanding section 17b, the department shall make 19
payments under this section on a schedule determined by the 20
department. 21
Sec. 11x. (1) The school consolidation and infrastructure fund 22
is created as a separate account within the state school aid fund 23
for the purpose of improving student academic outcomes, increasing 24
the efficiency of the state's public education system, and creating 25
a healthy and safe space for students in this state. 26
(2) The state treasurer may receive money or other assets from 27
any source for deposit into the school consolidation and 28
infrastructure fund. The state treasurer shall direct the 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
investment of the school consolidation and infrastructure fund. The 1
state treasurer shall credit to the school consolidation and 2
infrastructure fund interest and earnings from school consolidation 3
and infrastructure fund investments. 4
(3) Money in the school consolidation and infrastructure fund 5
at the close of the fiscal year remains in the school consolidation 6
and infrastructure fund and does not lapse to the state school aid 7
fund or the general fund. 8
(4) The department of treasury is the administrator of the 9
school consolidation and infrastructure fund for auditing purposes. 10
(5) Money available in the school consolidation and 11
infrastructure fund must not be expended without a specific 12
appropriation. 13
(6) From the state school aid fund money appropriated under 14
section 11, there is allocated for 2022-2023 only an amount not to 15
exceed $5,000,000.00 for grants to districts and intermediate 16
districts to support the cost of a feasibility study or analysis of 17
consolidation or the consolidation of services among 1 or more 18
buildings within a district, among 1 or more districts, or among 1 19
or more intermediate districts. Districts and intermediate 20
districts may apply for a grant under this subsection to the 21
department on a first-come, first-serve basis. The maximum amount 22
of a grant to be distributed under this subsection may not exceed 23
$250,000.00. Notwithstanding section 17b, the department shall make 24
payments under this subsection on a schedule determined by the 25
department. 26
(7) To be eligible for a grant under subsection (6), a 27
district or intermediate district must demonstrate to the 28
department, in the manner prescribed by the department, that it 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
will conduct a feasibility study or analysis and that all of the 1
following will be met: 2
(a) Within 30 days after completion of the study or analysis, 3
the district or intermediate district will make the results of the 4
study or analysis available to all districts and intermediate 5
districts included in the study or analysis. Within 60 days after 6
the completion of the study or analysis, the district or 7
intermediate district will make the results available on a publicly 8
available website. 9
(b) The study or analysis may include, but is not limited to, 10
consolidation opportunities in the following areas: 11
(i) Financial services, which may include, but is not limited 12
to, the following: 13
(A) Budgeting and staffing. 14
(B) Payroll. 15
(C) Employee benefits. 16
(D) State reporting. 17
(E) Software consolidation to achieve common software 18
throughout the intermediate district. 19
(ii) Human resources, which may include, but is not limited to, 20
the following: 21
(A) Onboarding. 22
(B) Title IX administration. 23
(C) Hiring. 24
(D) Software consolidation to achieve common software 25
throughout the intermediate district. 26
(iii) Information technology, which may include, but is not 27
limited to, the following: 28
(A) Software consolidation to achieve common software 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
throughout the intermediate district. 1
(B) Fiber projects. 2
(C) Cybersecurity. 3
(D) One-to-one device management. 4
(iv) Grant management and reporting, which may include, but is 5
not limited to, the following: 6
(A) Management of all state grant sites and databases. 7
(B) Grant reporting. 8
(v) Cash management, which may include, but is not limited to, 9
the opportunities for intermediate districts and districts to 10
contract on cash flow management to maximize interest earnings. 11
(vi) Debt issuance and management, including at least all of 12
the following: 13
(A) Refunding opportunities. 14
(B) New bond issue analysis. 15
(vii) School facility consolidation. 16
(viii) Consolidation of transportation-related activities. 17
(ix) The physical consolidation of districts. 18
(8) An intermediate district that receives a grant under this 19
section shall meet with its constituent districts located within 20
the intermediate district to discuss the results of the study or 21
analysis and to implement changes where feasible. The application 22
for an intermediate district must include a brief description of 23
how the intermediate district will conduct these meetings. 24
(9) To be eligible for the receipt of funding for 25
infrastructure-related projects appropriated from the school 26
consolidation and infrastructure fund created under this section, a 27
district must allow for the facility condition assessments 28
described in former section 11y to be conducted in the district. It 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
is the intent of the legislature that money in the school 1
consolidation and infrastructure fund will not be appropriated for 2
infrastructure projects until the completion of the facility 3
condition assessments described in former section 11y. 4
(10) For 2025-2026, $83,400,000.00 from the school 5
consolidation and infrastructure fund must be deposited into the 6
state school aid fund. 7
Sec. 11aa. (1) From the state school aid fund money 8
appropriated under section 11, there is allocated an amount not to 9
exceed $20,000,000.00 for 2022-2023 only for the intermediate 10
district or consortium of intermediate districts receiving funding 11
under former section 11y for the purposes of including ASHRAE Level 12
II Energy Efficiency Audits or similar audits to the statewide 13
school facilities study under former section 11y. These funds may 14
also be utilized for solar feasibility studies or data collection 15
for solar feasibility. 16
(2) The recipient of funding under this section must use the 17
funds in coordination with engineers from architectural, 18
engineering, or construction companies based in this state that are 19
familiar with school construction and energy efficiency audits to 20
perform a systematic assessment for school buildings in this state 21
in which pupils in grades K to 12 are educated and that are 22
operated by a district. Where possible, the inclusion of solar 23
feasibility studies or data collection for solar feasibility may be 24
performed as well. 25
(3) The energy efficiency audit may include, but is not 26
limited to, the following building improvements: 27
(a) The following energy efficiency measures: 28
(i) HVAC upgrades, including geothermal heat pumps. 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(ii) Lighting upgrades, including LED lights and occupancy 1
sensors. 2
(iii) Building envelope and weatherization. 3
(iv) Appliances and equipment. 4
(v) Building management systems. 5
(b) Solar power systems on or nearby school buildings, school 6
parking lots, and property. 7
(4) All energy efficiency audits and solar feasibility studies 8
or data collection for solar feasibility performed using these 9
funds must be shared with the appropriate school district in the 10
form of individual building reports. 11
(5) As part of the assessment described in this section, the 12
engineers must report to the recipient of funding under this 13
section the outcomes of the energy efficiency audits and, where 14
applicable, solar feasibility studies or data collection for solar 15
feasibility. 16
(6) The recipient of funding under this section must provide a 17
report to the house and senate appropriations subcommittees on 18
school aid, the state budget director, the house and senate fiscal 19
agencies, and the department summarizing the information it 20
receives under this section. 21
(7) Notwithstanding section 17b, the department must make 22
payments under this section by August 1, 2023. 23
Sec. 12d. (1) From the school consolidation and infrastructure 24
fund created under section 11x, there is allocated for 2023-2024 25
only an amount not to exceed $110,000,000.00 for the purposes of 26
this section. 27
(2) From the amount allocated in subsection (1), there is 28
allocated an amount not to exceed $75,000,000.00 for grants to 29
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districts and intermediate districts to support costs related to 1
internal consolidation within the district or intermediate 2
district. All of the following apply to grants under this 3
subsection: 4
(a) The department shall allow grants for applicants that have 5
already taken actions for internal consolidation within the 6
previous 2 years and grants for applicants that have not yet begun 7
internal consolidation activities. 8
(b) The department shall prioritize applications from 9
districts and intermediate districts that meet any of the following 10
criteria: 11
(i) Are in an opportunity index band, as described in section 12
31a, determined under section 6(21), of 3 or higher. 13
(ii) Are an intermediate district for which the percentage of 14
pupils in membership who were determined to be economically 15
disadvantaged in the immediately preceding fiscal year is equal to 16
or greater than the minimum percentage for a district or public 17
school academy to be in an opportunity index band, as described in 18
section 31a, determined under section 6(21), of 3 or higher. 19
(iii) Are experiencing declining enrollment. 20
(iv) Have no ability to issue bonds for infrastructure needs, 21
or have made a good-faith effort, as determined by the department, 22
to issue bonds for infrastructure needs. 23
(c) Grants may be used for operational expenses related to 24
internal consolidation and for infrastructure needs. Infrastructure 25
needs may include, but are not limited to, the removal of 26
buildings. 27
(3) From the amount allocated in subsection (1), 28
$35,000,000.00 is allocated as follows: 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(a) $15,000,000.00 to Detroit Public Schools Community 1
District to support the construction of the Cooley High School 2
athletic complex. 3
(b) $10,000,000.00 to Wayne RESA to support the construction 4
of an academic and professional building in the city of Wayne. 5
(c) $5,000,000.00 to Beecher Community School District to 6
support the construction of a high school in the district. 7
(d) $4,000,000.00 to Taylor School District for costs related 8
to a new high school in the district. 9
(e) $1,000,000.00 to the School District of the City of 10
Hamtramck to support the costs of building infrastructure upgrades 11
and maintenance. 12
(4) Subject to the provisions of this subsection, in addition 13
to the money appropriated in section 11, from the state school aid 14
fund, there is appropriated and allocated for 2025-2026 an amount 15
not to exceed $4,000,000.00 to Taylor School District for costs 16
related to a new high school in the district or for other 17
infrastructure purposes. The appropriation and allocation under 18
this subsection is contingent on the effective issuance of a 19
directive by the budget director, pursuant to section 451a of the 20
management and budget act, 1984 PA 431, MCL 18.451a, 18.1451a, to 21
lapse $4,000,000.00 of remaining funding from a work project that 22
was established under this section in 2023-2024. The amount 23
allocated under this subsection may not exceed the amount lapsed 24
from the work project referenced in the immediately preceding 25
sentence. 26
(5) Notwithstanding section 17b, the department shall make 27
payments under this section on a schedule determined by the 28
department. 29
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Sec. 12e. (1) From the school consolidation and infrastructure 1
fund money appropriated in section 11, there is allocated for 2025-2
2026 only an amount estimated at $100,000,000.00 for grants to 3
districts and intermediate districts for infrastructure needs as 4
described in this section. 5
(2) Districts and intermediate districts must apply on a 6
competitive basis for funding in a form and manner determined by 7
the department. 8
(3) If the amount allocated under subsection (1) is 9
insufficient to fully fund awards under this section, there is 10
appropriated from the school consolidation and infrastructure fund 11
described in section 11x the amount necessary to fully fund these 12
awards, or the maximum available in the fund, whichever is less. 13
The state budget director shall provide notification to the house 14
and senate appropriations subcommittees on school aid and the house 15
and senate fiscal agencies regarding any additional appropriation 16
described in this subsection. 17
(4) The department shall prioritize applications from 18
districts and intermediate districts that meet any of the following 19
criteria: 20
(a) Are in an opportunity index band, as described in section 21
31a, determined under section 6(21), of 4 or higher. 22
(b) Are an intermediate district for which the percentage of 23
pupils in membership who were determined to be economically 24
disadvantaged in the immediately preceding fiscal year is equal to 25
or greater than the minimum percentage for a district or public 26
school academy to be in an opportunity index band, as described in 27
section 31a, determined under section 6(21), of 4 or higher. 28
(c) Have infrastructure needs related to HVAC systems or 29
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roofing. 1
(d) Have no ability to issue bonds for infrastructure needs, 2
or have made a good-faith effort, as determined by the department, 3
to issue bonds for infrastructure needs. 4
(5) Funds awarded in subsection (4) may be used only to 5
address infrastructure needs that were identified in the statewide 6
school facilities study issued pursuant to the former section 11y. 7
(6) The funds allocated under this section for 2025-2026 are a 8
work project appropriation, and any unexpended funds for 2025-2026 9
are carried forward into 2026-2027. The purpose of the work project 10
is to fund district and intermediate district infrastructure needs. 11
The estimated completion date of the work project is September 30, 12
2030. 13
(7) Notwithstanding section 17b, the department shall make 14
payments under this section on a schedule determined by the 15
department. 16
Sec. 15. (1) If a district or intermediate district fails to 17
receive its proper apportionment, the department, upon satisfactory 18
proof that the district or intermediate district was entitled 19
justly, shall apportion the deficiency in the next apportionment. 20
Subject to subsections (2) and (3), if a district or intermediate 21
district has received more than its proper apportionment, the 22
department, upon satisfactory proof, shall deduct the excess in the 23
next apportionment. Notwithstanding any other provision in this 24
article, state aid overpayments to a district, other than 25
overpayments in payments for special education or special education 26
transportation, may be recovered from any payment made under this 27
article other than a special education or special education 28
transportation payment, from the proceeds of a loan to the district 29
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under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 1
141.942, or from the proceeds of millage levied or pledged under 2
section 1211 of the revised school code, MCL 380.1211. State aid 3
overpayments made in special education or special education 4
transportation payments may be recovered from subsequent special 5
education or special education transportation payments, from the 6
proceeds of a loan to the district under the emergency municipal 7
loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds 8
of millage levied or pledged under section 1211 of the revised 9
school code, MCL 380.1211. 10
(2) If the result of an audit conducted by or for the 11
department affects the current fiscal year membership, the 12
department shall adjust affected payments in the current fiscal 13
year. A deduction due to an adjustment made as a result of an audit 14
conducted by or for the department, or as a result of information 15
obtained by the department from the district, an intermediate 16
district, the department of treasury, or the office of auditor 17
general, must be deducted from the district's apportionments when 18
the adjustment is finalized. At the request of the district and 19
upon the district presenting evidence satisfactory to the 20
department of the hardship, the department may grant up to an 21
additional 4 years for the adjustment and may advance payments to 22
the district otherwise authorized under this article if the 23
district would otherwise experience a significant hardship in 24
satisfying its financial obligations. However, a district that 25
presented satisfactory evidence of hardship and was undergoing an 26
extended adjustment during 2018-2019 may continue to use the period 27
of extended adjustment as originally granted by the department. 28
(3) If, based on an audit by the department or the 29
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department's designee or because of new or updated information 1
received by the department, the department determines that the 2
amount paid to a district or intermediate district under this 3
article for the current fiscal year or a prior fiscal year was 4
incorrect, the department shall make the appropriate deduction or 5
payment in the district's or intermediate district's allocation in 6
the next apportionment after the adjustment is finalized. The 7
department shall calculate the deduction or payment according to 8
the law in effect in the fiscal year in which the incorrect amount 9
was paid. If the district does not receive an allocation for the 10
fiscal year or if the allocation is insufficient to pay the amount 11
of any deduction, the amount of any deduction otherwise applicable 12
must be satisfied from the proceeds of a loan to the district under 13
the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 14
141.942, or from the proceeds of millage levied or pledged under 15
section 1211 of the revised school code, MCL 380.1211, as 16
determined by the department. 17
(4) If the department makes an adjustment under this section 18
based in whole or in part on a membership audit finding that a 19
district or intermediate district employed an educator in violation 20
of certification requirements under the revised school code and 21
rules promulgated by the department, the department shall prorate 22
the adjustment according to the period of noncompliance with the 23
certification requirements. 24
(5) The department may conduct audits, or may direct audits by 25
designee of the department, for the current fiscal year and the 26
immediately preceding fiscal year of all records related to a 27
program for which a district or intermediate district has received 28
funds under this article. 29
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(6) Expenditures made by departments under this article that 1
are caused by the write-off of prior year accruals may be funded by 2
revenue from the write-off of prior year accruals. 3
(7) In addition to funds appropriated in section 11 for all 4
programs and services, there is appropriated for 2024-2025 and 5
2025-2026 and 2026-2027 for obligations in excess of applicable 6
appropriations an amount equal to the collection of overpayments, 7
but not to exceed amounts available from overpayments. 8
Sec. 18. (1) Except as provided in another section of this 9
article, each district or other entity shall apply the money 10
received by the district or entity under this article to salaries 11
and other compensation of teachers and other employees, tuition, 12
transportation, lighting, heating, ventilation, water service, the 13
purchase of textbooks, other supplies, and any other school 14
operating expenditures defined in section 7. However, not more than 15
20% of the total amount received by a district under sections 22a 16
and 22b or received by an intermediate district under section 81 17
may be transferred by the board to either the capital projects fund 18
or to the debt retirement fund for debt service. A district or 19
other entity shall not apply or take the money for a purpose other 20
than as provided in this section. The department shall determine 21
the reasonableness of expenditures and may withhold from a 22
recipient of funds under this article the apportionment otherwise 23
due upon a violation by the recipient. A district must not be 24
prohibited or limited from using funds appropriated or allocated 25
under this article that are permitted for use for noninstructional 26
services to contract or subcontract with an intermediate district, 27
third party, or vendor for the noninstructional services. 28
(2) A Subject to subsection (17), a district or intermediate 29
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district shall adopt an annual budget in a manner that complies 1
with the uniform budgeting and accounting act, 1968 PA 2, MCL 2
141.421 to 141.440a. Within 15 days after a district board adopts 3
its annual operating budget for the following school fiscal year, 4
or after a district board adopts a subsequent revision to that 5
budget, the district shall make all of the following available 6
through a link on its website homepage, or may make the information 7
available through a link on its intermediate district's website 8
homepage, in a form and manner prescribed by the department: 9
(a) The annual operating budget and subsequent budget 10
revisions. 11
(b) Using data that have already been collected and submitted 12
to the department, a summary of district expenditures for the most 13
recent fiscal year for which they are available, expressed in the 14
following 2 visual displays: 15
(i) A chart of personnel expenditures, broken into the 16
following subcategories: 17
(A) Salaries and wages. 18
(B) Employee benefit costs, including, but not limited to, 19
medical, dental, vision, life, disability, and long-term care 20
benefits. 21
(C) Retirement benefit costs. 22
(D) All other personnel costs. 23
(ii) A chart of all district expenditures, broken into the 24
following subcategories: 25
(A) Instruction. 26
(B) Support services. 27
(C) Business and administration. 28
(D) Operations and maintenance. 29
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(c) Links to all of the following: 1
(i) The current collective bargaining agreement for each 2
bargaining unit. 3
(ii) Each health care benefits plan, including, but not limited 4
to, medical, dental, vision, disability, long-term care, or any 5
other type of benefits that would constitute health care services, 6
offered to any bargaining unit or employee in the district. 7
(iii) The audit report of the financial audit conducted under 8
subsection (4) for the most recent fiscal year for which it is 9
available. 10
(iv) The bids required under section 5 of the public employees 11
health benefit act, 2007 PA 106, MCL 124.75. 12
(v) The district's written policy governing procurement of 13
supplies, materials, and equipment. 14
(vi) The district's written policy establishing specific 15
categories of reimbursable expenses, as described in section 16
1254(2) of the revised school code, MCL 380.1254. 17
(vii) Either the district's accounts payable check register for 18
the most recent school fiscal year or a statement of the total 19
amount of expenses incurred by board members or employees of the 20
district that were reimbursed by the district for the most recent 21
school fiscal year. 22
(d) The total salary and a description and cost of each fringe 23
benefit included in the compensation package for the superintendent 24
of the district and for each employee of the district whose salary 25
exceeds $100,000.00. 26
(e) The annual amount spent on dues paid to associations. 27
(f) The annual amount spent on lobbying or lobbying services. 28
As used in this subdivision, "lobbying" means that term as defined 29
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in section 5 of 1978 PA 472, MCL 4.415. 1
(g) Any deficit elimination plan or enhanced deficit 2
elimination plan the district was required to submit under the 3
revised school code. 4
(h) Identification of all credit cards maintained by the 5
district as district credit cards, the identity of all individuals 6
authorized to use each of those credit cards, the credit limit on 7
each credit card, and the dollar limit, if any, for each 8
individual's authorized use of the credit card. 9
(i) Costs incurred for each instance of out-of-state travel by 10
the school administrator of the district that is fully or partially 11
paid for by the district and the details of each of those instances 12
of out-of-state travel, including at least identification of each 13
individual on the trip, destination, and purpose. 14
(3) For the information required under subsection (2)(a), 15
(2)(b)(i), and (2)(c), an intermediate district shall provide the 16
same information in the same manner as required for a district 17
under subsection (2). 18
(4) For the purposes of determining the reasonableness of 19
expenditures, whether a district or intermediate district has 20
received the proper amount of funds under this article, and whether 21
a violation of this article has occurred, all of the following 22
apply: 23
(a) The department shall require that each district and 24
intermediate district have an audit of the district's or 25
intermediate district's financial and pupil accounting records 26
conducted at least annually, and at such other times as determined 27
by the department, at the expense of the district or intermediate 28
district, as applicable. The audits must be performed by a 29
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certified public accountant or by the intermediate district 1
superintendent, as may be required by the department, or in the 2
case of a district of the first class by a certified public 3
accountant, the intermediate superintendent, or the auditor general 4
of the city. A district or intermediate district shall retain these 5
records for the current fiscal year and from at least the 3 6
immediately preceding fiscal years. 7
(b) If a district operates in a single building with fewer 8
than 700 full-time equated pupils, if the district has stable 9
membership, and if the error rate of the immediately preceding 2 10
pupil accounting field audits of the district is less than 2%, the 11
district may have a pupil accounting field audit conducted 12
biennially but must continue to have desk audits for each pupil 13
count. The auditor must document compliance with the audit cycle in 14
the pupil auditing manual. As used in this subdivision, "stable 15
membership" means that the district's membership for the current 16
fiscal year varies from the district's membership for the 17
immediately preceding fiscal year by less than 5%. 18
(c) A district's or intermediate district's annual financial 19
audit must include an analysis of the financial and pupil 20
accounting data used as the basis for distribution of state school 21
aid. 22
(d) The pupil and financial accounting records and reports, 23
audits, and management letters are subject to requirements 24
established in the auditing and accounting manuals approved and 25
published by the department. 26
(e) All of the following must be done not later than November 27
1 each year for reporting the prior fiscal year data: 28
(i) A district shall file the annual financial audit reports 29
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with the intermediate district and the department. If the issuance 1
of single audits is delayed for the 2024-25 school year due to a 2
late issuance of a Compliance Supplement, the single audit portion 3
of that audit must be filed within 30 days of the issuance of the 4
Compliance Supplement by OMB. 5
(ii) The intermediate district shall file the annual financial 6
audit reports for the intermediate district with the department. If 7
the issuance of single audits is delayed for the 2024-25 school 8
year due to a late issuance of a Compliance Supplement, the single 9
audit portion of that audit must be filed within 30 days of the 10
issuance of the Compliance Supplement by OMB. 11
(iii) The intermediate district shall enter the pupil membership 12
audit reports, known as the audit narrative, for its constituent 13
districts and for the intermediate district, for the pupil 14
membership count day and supplemental count day, in the Michigan 15
student data system. 16
(f) The annual financial audit reports and pupil accounting 17
procedures reports must be available to the public in compliance 18
with the freedom of information act, 1976 PA 442, MCL 15.231 to 19
15.246. 20
(g) Not later than January 31 of each year, the department 21
shall notify the state budget director and the legislative 22
appropriations subcommittees responsible for review of the school 23
aid budget of districts and intermediate districts that have not 24
filed an annual financial audit and pupil accounting procedures 25
report required under this section for the school year ending in 26
the immediately preceding fiscal year. 27
(5) By the first business day in November of each fiscal year, 28
each district and intermediate district shall submit to the center, 29
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in a manner prescribed by the center, annual comprehensive 1
financial data consistent with the district's or intermediate 2
district's audited financial statements and consistent with 3
accounting manuals and charts of accounts approved and published by 4
the department. For an intermediate district, the report must also 5
contain the website address where the department can access the 6
report required under section 620 of the revised school code, MCL 7
380.620. The department shall ensure that the prescribed Michigan 8
public school accounting manual chart of accounts includes standard 9
conventions to distinguish expenditures by allowable fund function 10
and object. The functions must include at minimum categories for 11
instruction, pupil support, instructional staff support, general 12
administration, school administration, business administration, 13
transportation, facilities operation and maintenance, facilities 14
acquisition, and debt service; and must include object 15
classifications of salary, benefits, including categories for 16
active employee health expenditures, purchased services, supplies, 17
capital outlay, and other. A district shall report the required 18
level of detail consistent with the manual as part of the 19
comprehensive annual financial report. 20
(6) By the last business day in September of each year, each 21
district and intermediate district shall file with the center the 22
special education actual cost report, known as "SE-4096", on a form 23
and in the manner prescribed by the center. An intermediate 24
district shall certify the audit of a district's report. 25
(7) By not later than 1 week after the last business day in 26
September of each year, each district and intermediate district 27
shall file with the center the audited transportation expenditure 28
report, known as "SE-4094", on a form and in the manner prescribed 29
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by the center. An intermediate district shall certify the audit of 1
a district's report. 2
(8) The department shall review its pupil accounting and pupil 3
auditing manuals at least annually and shall periodically update 4
those manuals to reflect changes in this article. Any changes to 5
the pupil accounting manual that are applicable for the school year 6
that begins after March 31 of a fiscal year must be published by 7
not later than March 31 of that fiscal year. However, if 8
legislation is enacted that necessitates adjustments to the pupil 9
accounting manual after March 31 of a fiscal year, and a district 10
incurs a violation of the amended pupil accounting manual in the 11
subsequent fiscal year, the department must notify the district of 12
that violation and allow the district 30 days to correct the 13
violation before the department is allowed to impose financial 14
penalties under this act related to the violation. 15
(9) If a district that is a public school academy purchases 16
property using money received under this article, the public school 17
academy shall retain ownership of the property unless the public 18
school academy sells the property at fair market value. 19
(10) If a district or intermediate district does not comply 20
with subsections (4), (5), (6), (7), and (12), or if the department 21
determines that the financial data required under subsection (5) 22
are not consistent with audited financial statements, the 23
department shall withhold all state school aid due to the district 24
or intermediate district under this article, beginning with the 25
next payment due to the district or intermediate district, until 26
the district or intermediate district complies with subsections 27
(4), (5), (6), (7), and (12). If the district or intermediate 28
district does not comply with subsections (4), (5), (6), (7), and 29
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(12) by the end of the fiscal year, the district or intermediate 1
district forfeits the amount withheld. 2
(11) If Subject to subsection (17), if a district or 3
intermediate district does not comply with subsection (2), the 4
department may withhold up to 10% of the total state school aid due 5
to the district or intermediate district under this article, 6
beginning with the next payment due to the district or intermediate 7
district, until the district or intermediate district complies with 8
subsection (2). If the district or intermediate district does not 9
comply with subsection (2) by the end of the fiscal year, the 10
district or intermediate district forfeits the amount withheld. 11
(12) By November 1 of each year, if a district or intermediate 12
district offers virtual learning under section 21f, or for a school 13
of excellence that is a cyber school, as defined in section 551 of 14
the revised school code, MCL 380.551, the district or intermediate 15
district shall submit to the department a report that details the 16
per-pupil costs of operating the virtual learning by vendor type 17
and virtual learning model. The report must include information 18
concerning the operation of virtual learning for the immediately 19
preceding school fiscal year, including information concerning 20
summer programming. Information must be collected in a form and 21
manner determined by the department and must be collected in the 22
most efficient manner possible to reduce the administrative burden 23
on reporting entities. 24
(13) By March 31 of each year, the department shall submit to 25
the house and senate appropriations subcommittees on state school 26
aid, the state budget director, and the house and senate fiscal 27
agencies a report summarizing the per-pupil costs by vendor type of 28
virtual courses available under section 21f and virtual courses 29
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provided by a school of excellence that is a cyber school, as 1
defined in section 551 of the revised school code, MCL 380.551. 2
(14) As used in subsections (12) and (13), "vendor type" means 3
the following: 4
(a) Virtual courses provided by the Michigan Virtual 5
University. 6
(b) Virtual courses provided by a school of excellence that is 7
a cyber school, as defined in section 551 of the revised school 8
code, MCL 380.551. 9
(c) Virtual courses provided by third party vendors not 10
affiliated with a public school in this state. 11
(d) Virtual courses created and offered by a district or 12
intermediate district. 13
(15) An allocation to a district or another entity under this 14
article is contingent upon the district's or entity's compliance 15
with this section. 16
(16) The department shall annually submit to the senate and 17
house subcommittees on school aid and to the senate and house 18
standing committees on education an itemized list of allocations 19
under this article to any association or consortium consisting of 20
associations in the immediately preceding fiscal year. The report 21
must detail the recipient or recipients, the amount allocated, and 22
the purpose for which the funds were distributed. 23
(17) If the legislature has not enacted and the governor has 24
not approved the general appropriations act for state school aid 25
for the fiscal year beginning July 1 of that year before July 1, 26
the department shall not withhold funds or impose any penalty under 27
subsection (11) against a district or intermediate district for 28
failure to comply with subsection (2) until 30 days after the 29
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enactment of the general appropriations act for state school aid 1
for that fiscal year. 2
Sec. 18a. (1) This subsection applies only to grant funds 3
awarded and allotted from appropriations in this article that have 4
not been designated as a work project appropriation under section 5
451a of the management and budget act, 1984 PA 431, MCL 1451a. 6
Except as otherwise provided in this article, grant funds described 7
in this subsection that are awarded and allotted to a district, 8
intermediate district, or other entity, unless otherwise specified 9
in this article, must be expended by the grant recipient before the 10
end of the fiscal year immediately following the fiscal year in 11
which the funds are received. Except as otherwise provided in this 12
article, if a grant recipient does not expend the funds received 13
under this article before the end of the fiscal year in which the 14
funds are received, the grant recipient shall submit a report to 15
the department not later than November 1 after the fiscal year in 16
which the funds are received indicating whether it expects to 17
expend those funds during the fiscal year in which the report is 18
submitted. Except as otherwise provided in this article, a 19
recipient of a grant shall return any unexpended grant funds to the 20
department in the manner prescribed by the department not later 21
than September 30 after the fiscal year in which the funds are 22
received. 23
(2) This subsection applies only to grant funds awarded and 24
allotted from appropriations in this article that have been 25
designated as a work project appropriation under section 451a of 26
the management and budget act, 1984 PA 431, MCL 18.1451a. Except as 27
otherwise provided in this article, grant funds described in this 28
subsection that are awarded and allotted to a district, 29
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intermediate district, or other entity, unless otherwise specified 1
in this article, must be expended by the grant recipient before the 2
end of the fiscal year immediately following the fiscal year in 3
which the work project is closed pursuant to section 451a of the 4
management and budget act, 1984 PA 431, MCL 18.1451a. Except as 5
otherwise provided in this article, a recipient of a grant shall 6
return any unexpended grant funds to the department in the manner 7
prescribed by the department not later than September 30 after the 8
fiscal year in which the work project is closed. 9
Sec. 19. (1) A district or intermediate district shall comply 10
with all applicable reporting requirements specified in state and 11
federal law. Data provided to the center, in a form and manner 12
prescribed by the center, must be aggregated and disaggregated as 13
required by state and federal law. In addition, a district or 14
intermediate district shall cooperate with all measures taken by 15
the center to establish and maintain a statewide P-20 longitudinal 16
data system. 17
(2) Each district shall furnish to the center not later than 5 18
weeks after the pupil membership count day and by the last business 19
day in June of the school fiscal year ending in the fiscal year, in 20
a manner prescribed by the center, the information necessary for 21
the preparation of the district and high school graduation report, 22
information regarding completion of early middle college 23
credentials obtained and postsecondary credits obtained in any 24
college acceleration program, and information necessary for the 25
preparation of the state and federal accountability reports. This 26
information must meet requirements established in the pupil 27
auditing manual approved and published by the department. The 28
center shall calculate an annual graduation and pupil dropout rate 29
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for each high school, each district, and this state, in compliance 1
with nationally recognized standards for these calculations. The 2
center shall report all graduation and dropout rates to the senate 3
and house education committees and appropriations committees, the 4
state budget director, and the department not later than 30 days 5
after the publication of the list described in subsection (5). 6
Before reporting these graduation and dropout rates, the department 7
shall allow a school or district to appeal the calculations. The 8
department shall consider and act upon the appeal within 30 days 9
after it is submitted and shall not report these graduation and 10
dropout rates until after all appeals have been considered and 11
decided. 12
(3) By the first business day in December and by the last 13
business day in June of each year, and within 30 days of any change 14
in employment or assignment status related to a criminal act, a 15
district shall furnish to the center, in a manner prescribed by the 16
center, information related to educational personnel and personnel 17
vacancies as necessary for reporting required by state and federal 18
law. For the purposes of this subsection, the center shall only 19
require districts and intermediate districts to report information 20
that is not already available from the office of retirement 21
services in the department of technology, management, and budget, 22
including, but not limited to, vacancy start and end dates, reasons 23
for the vacancy, and vacancy termination. 24
(4) If a district or intermediate district fails to meet the 25
requirements of this section, the department shall withhold 5% of 26
the total funds for which the district or intermediate district 27
qualifies under this article until the district or intermediate 28
district complies with this section. If the district or 29
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intermediate district does not comply with this section by the end 1
of the fiscal year, the department shall place the amount withheld 2
in an escrow account until the district or intermediate district 3
complies with this section. 4
(5) Before publishing a list of school or district 5
accountability designations as required by the no child left behind 6
act of 2001, Public Law 107-110, or the every student succeeds act, 7
Public Law 114-95, and utilizing data that were certified as 8
accurate and complete after districts and intermediate districts 9
adhered to deadlines, data quality reviews, and correction 10
processes leading to local certification of final student data in 11
subsection (2), the department shall allow a school or district to 12
appeal any calculation errors used in the preparation of 13
accountability metrics. The department shall consider and act upon 14
the appeal within 30 days after it is submitted and shall not 15
publish the list until after all appeals have been considered and 16
decided. 17
(6) The department shall implement statewide standard 18
reporting requirements for education data approved by the 19
department in conjunction with the center. The department shall 20
work with the center, intermediate districts, districts, and other 21
interested stakeholders to implement this policy change. A district 22
or intermediate district shall implement the statewide standard 23
reporting requirements not later than 2017-2018 or when a district 24
or intermediate district updates its education data reporting 25
system, whichever is later. 26
(7) A district or intermediate district shall collect and 27
submit to the center tribal affiliation data for all students and 28
staff and the identification of student participation in federal 29
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programs funded under 20 USC 7401 to 7546 and participation in 1
federal programs funded under the Johnson-O'Malley Supplemental 2
supplemental Indian Education Program Modernization Act, education 3
program modernization act, Public Law 115-404. The data must be 4
reported in a form and manner prescribed by the center in 5
consultation with the federally recognized Indian tribes in this 6
state and the department in adherence to the department's tribal 7
consultation policy. A district or intermediate district shall 8
begin completion of the reporting requirement under this subsection 9
by not later than the 2024-2025 fiscal year. 10
Sec. 20. (1) For 2025-2026, 2026-2027, the target foundation 11
allowance is $10,050.00.$10,300.00. 12
(2) The department shall calculate the amount of each 13
district's foundation allowance as provided in this section, using 14
a target foundation allowance in the amount specified in subsection 15
(1). 16
(3) Except as otherwise provided in this section, the 17
department shall calculate the amount of a district's foundation 18
allowance as follows, using in all calculations the total amount of 19
the district's foundation allowance as calculated before any 20
proration: 21
(a) For a district that had a foundation allowance for the 22
immediately preceding fiscal year that was equal to the target 23
foundation allowance for the immediately preceding fiscal year, the 24
district receives a foundation allowance in an amount equal to the 25
target foundation allowance described in subsection (1) for the 26
current fiscal year. 27
(b) For a district that had a foundation allowance for the 28
immediately preceding fiscal year that was greater than the target 29
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foundation allowance for the immediately preceding fiscal year, the 1
district's foundation allowance is an amount equal to the lesser of 2
(the sum of the district's foundation allowance for the immediately 3
preceding fiscal year plus any per pupil amount calculated under 4
section 20m(2) in the immediately preceding fiscal year plus the 5
increase in the target foundation allowance for the current fiscal 6
year, as compared to the immediately preceding fiscal year) or (the 7
product of the district's foundation allowance for the immediately 8
preceding fiscal year times the percentage increase in the United 9
States Consumer Price Index in the calendar year ending in the 10
immediately preceding fiscal year as reported by the May revenue 11
estimating conference conducted under section 367b of the 12
management and budget act, 1984 PA 431, MCL 18.1367b). 13
(c) For a district that had a foundation allowance in the 14
immediately preceding fiscal year that was less than the target 15
foundation allowance in effect for that fiscal year, the district's 16
foundation allowance is an amount equal to the lesser of (the sum 17
of district's foundation allowance for the immediately preceding 18
fiscal year plus any per pupil amount calculated under section 19
20m(2) in the immediately preceding fiscal year plus the increase 20
in the target foundation allowance for the current fiscal year, as 21
compared to the immediately preceding fiscal year) or (the product 22
of the district's foundation allowance for the immediately 23
preceding fiscal year times the percentage increase in the United 24
States Consumer Price Index in the calendar year ending in the 25
immediately preceding fiscal year as reported by the May revenue 26
estimating conference conducted under section 367b of the 27
management and budget act, 1984 PA 431, MCL 18.1367b). 28
(d) For a district that has a foundation allowance that is not 29
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a whole dollar amount, the department shall round the district's 1
foundation allowance up to the nearest whole dollar. 2
(4) Except as otherwise provided in this subsection, the state 3
portion of a district's foundation allowance is an amount equal to 4
the district's foundation allowance or the target foundation 5
allowance for the current fiscal year, whichever is less, minus the 6
local portion of the district's foundation allowance. Except as 7
otherwise provided in this subsection, for a district described in 8
subsection (3)(b) and (c), the state portion of the district's 9
foundation allowance is an amount equal to the target foundation 10
allowance minus the district's foundation allowance supplemental 11
payment per pupil calculated under section 20m and minus the local 12
portion of the district's foundation allowance. For a district that 13
has a millage reduction required under section 31 of article IX of 14
the state constitution of 1963, the department shall calculate the 15
state portion of the district's foundation allowance as if that 16
reduction did not occur. For a receiving district, if school 17
operating taxes continue to be levied on behalf of a dissolved 18
district that has been attached in whole or in part to the 19
receiving district to satisfy debt obligations of the dissolved 20
district under section 12 of the revised school code, MCL 380.12, 21
the taxable value per membership pupil of property in the receiving 22
district used for the purposes of this subsection does not include 23
the taxable value of property within the geographic area of the 24
dissolved district. For Before the fiscal year ending September 30, 25
2027, for a community district, if school operating taxes continue 26
to be levied by a qualifying school district under section 12b of 27
the revised school code, MCL 380.12b, with the same geographic area 28
as the community district, the taxable value per membership pupil 29
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of property in the community district to be used for the purposes 1
of this subsection does not include the taxable value of property 2
within the geographic area of the community district. Beginning 3
with the fiscal year ending September 30, 2027, it is the intent of 4
the legislature that the previous sentence no longer applies and 5
the taxable value per membership pupil of property in the community 6
district used for the purposes of this subsection includes the 7
taxable value of property within the geographic area of the 8
community district on or after July 1, 2026 and thereafter. 9
(5) The allocation calculated under this section for a pupil 10
is based on the foundation allowance of the pupil's district of 11
residence. For a pupil enrolled under section 105 or 105c in a 12
district other than the pupil's district of residence, the 13
allocation calculated under this section is based on the lesser of 14
the foundation allowance of the pupil's district of residence or 15
the foundation allowance of the educating district. For a pupil in 16
membership in a K-5, K-6, or K-8 district who is enrolled in 17
another district in a grade not offered by the pupil's district of 18
residence, the allocation calculated under this section is based on 19
the foundation allowance of the educating district if the educating 20
district's foundation allowance is greater than the foundation 21
allowance of the pupil's district of residence. The calculation 22
under this subsection must take into account a district's per-pupil 23
allocation under section 20m. 24
(6) Except as otherwise provided in this subsection, for 25
pupils in membership, other than special education pupils, in a 26
public school academy, the allocation calculated under this section 27
is an amount per membership pupil other than special education 28
pupils in the public school academy equal to the target foundation 29
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allowance specified in subsection (1), or, for a public school 1
academy that was issued a contract under section 552 of the revised 2
school code, MCL 380.552, to operate as a school of excellence that 3
is a cyber school, $10,050.00. $8,240.00. Notwithstanding section 4
101, for a public school academy that begins operations after the 5
pupil membership count day, the amount per membership pupil 6
calculated under this subsection must be adjusted by multiplying 7
that amount per membership pupil by the number of hours of pupil 8
instruction provided by the public school academy after it begins 9
operations, as determined by the department, divided by the minimum 10
number of hours of pupil instruction required under section 101(3). 11
The result of this calculation must not exceed the amount per 12
membership pupil otherwise calculated under this subsection. 13
(7) For pupils in membership, other than special education 14
pupils, in a community district, the allocation calculated under 15
this section is an amount per membership pupil other than special 16
education pupils in the community district equal to the foundation 17
allowance of the qualifying school district, as described in 18
section 12b of the revised school code, MCL 380.12b, that is 19
located within the same geographic area as the community district. 20
(8) Subject to subsection (4), for a district that is formed 21
or reconfigured after June 1, 2002 by consolidation of 2 or more 22
districts or by annexation, the resulting district's foundation 23
allowance under this section beginning after the effective date of 24
the consolidation or annexation is the lesser of the sum of the 25
average of the foundation allowances of each of the original or 26
affected districts, calculated as provided in this section, 27
weighted as to the percentage of pupils in total membership in the 28
resulting district who reside in the geographic area of each of the 29
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original or affected districts plus $100.00 or the highest 1
foundation allowance among the original or affected districts. This 2
subsection does not apply to a receiving district unless there is a 3
subsequent consolidation or annexation that affects the district. 4
The calculation under this subsection must take into account a 5
district's per-pupil allocation under section 20m. 6
(9) The department shall round each fraction used in making 7
calculations under this section to the fourth decimal place and 8
shall round the dollar amount of an increase in the target 9
foundation allowance to the nearest whole dollar. 10
(10) State payments related to payment of the foundation 11
allowance for a special education pupil are not calculated under 12
this section but are instead calculated under section 51e. 13
(11) To assist the legislature in determining the target 14
foundation allowance for the subsequent fiscal year, each revenue 15
estimating conference conducted under section 367b of the 16
management and budget act, 1984 PA 431, MCL 18.1367b, must 17
calculate a pupil membership factor, a revenue adjustment factor, 18
and an index as follows: 19
(a) The pupil membership factor is computed by dividing the 20
estimated membership in the school year ending in the current 21
fiscal year, excluding intermediate district membership, by the 22
estimated membership for the school year ending in the subsequent 23
fiscal year, excluding intermediate district membership. If a 24
consensus membership factor is not determined at the revenue 25
estimating conference, the principals of the revenue estimating 26
conference shall report their estimates to the house and senate 27
subcommittees responsible for school aid appropriations not later 28
than 7 days after the conclusion of the revenue conference. 29
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(b) The revenue adjustment factor is computed by dividing the 1
sum of the estimated total state school aid fund revenue for the 2
subsequent fiscal year plus the estimated total state school aid 3
fund revenue for the current fiscal year, adjusted for any change 4
in the rate or base of a tax the proceeds of which are deposited in 5
that fund and excluding money transferred into that fund from the 6
countercyclical budget and economic stabilization fund under the 7
management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, by 8
the sum of the estimated total school aid fund revenue for the 9
current fiscal year plus the estimated total state school aid fund 10
revenue for the immediately preceding fiscal year, adjusted for any 11
change in the rate or base of a tax the proceeds of which are 12
deposited in that fund. If a consensus revenue factor is not 13
determined at the revenue estimating conference, the principals of 14
the revenue estimating conference shall report their estimates to 15
the house and senate subcommittees responsible for school aid 16
appropriations not later than 7 days after the conclusion of the 17
revenue conference. 18
(c) The index is calculated by multiplying the pupil 19
membership factor by the revenue adjustment factor. If a consensus 20
index is not determined at the revenue estimating conference, the 21
principals of the revenue estimating conference shall report their 22
estimates to the house and senate subcommittees responsible for 23
state school aid appropriations not later than 7 days after the 24
conclusion of the revenue conference. 25
(12) Payments to districts and public school academies are not 26
made under this section. Rather, the calculations under this 27
section are used to determine the amount of state payments under 28
section 22b. 29
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(13) If an amendment to section 2 of article VIII of the state 1
constitution of 1963 allowing state aid to some or all nonpublic 2
schools is approved by the voters of this state, each foundation 3
allowance or per-pupil payment calculation under this section may 4
be reduced. 5
(14) As used in this section: 6
(a) "Certified mills" means the lesser of 18 mills or the 7
number of mills of school operating taxes levied by the district in 8
1993-94. 9
(b) "Current fiscal year" means the fiscal year for which a 10
particular calculation is made. 11
(c) "Dissolved district" means a district that loses its 12
organization, has its territory attached to 1 or more other 13
districts, and is dissolved as provided under section 12 of the 14
revised school code, MCL 380.12. 15
(d) "Immediately preceding fiscal year" means the fiscal year 16
immediately preceding the current fiscal year. 17
(e) "Local portion of the district's foundation allowance" 18
means an amount that is equal to the difference between (the sum of 19
the product of the taxable value per membership pupil of all 20
property in the district that is nonexempt property times the 21
district's certified mills and, for a district with certified mills 22
exceeding 12, the product of the taxable value per membership pupil 23
of property in the district that is commercial personal property 24
times the certified mills minus 12 mills) and (the quotient of the 25
product of the captured assessed valuation under tax increment 26
financing acts times the district's certified mills divided by the 27
district's membership excluding special education pupils). 28
(f) "Membership" means the definition of that term under 29
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section 6 as in effect for the particular fiscal year for which a 1
particular calculation is made. 2
(g) "Nonexempt property" means property that is not a 3
principal residence, qualified agricultural property, qualified 4
forest property, supportive housing property, industrial personal 5
property, commercial personal property, or property occupied by a 6
public school academy. 7
(h) "Principal residence", "qualified agricultural property", 8
"qualified forest property", "supportive housing property", 9
"industrial personal property", and "commercial personal property" 10
mean those terms as defined in section 1211 of the revised school 11
code, MCL 380.1211. 12
(i) "Receiving district" means a district to which all or part 13
of the territory of a dissolved district is attached under section 14
12 of the revised school code, MCL 380.12. 15
(j) "School operating purposes" means the purposes included in 16
the operation costs of the district as prescribed in sections 7 and 17
18 and purposes authorized under section 1211 of the revised school 18
code, MCL 380.1211. 19
(k) "School operating taxes" means local ad valorem property 20
taxes levied under section 1211 of the revised school code, MCL 21
380.1211, and retained for school operating purposes. 22
(l) "Tax increment financing acts" means parts 2, 3, 4, and 6 23
of the recodified tax increment financing act, 2018 PA 57, MCL 24
125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield 25
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. 26
(m) "Taxable value per membership pupil" means taxable value, 27
as certified by the county treasurer and reported to the 28
department, for the calendar year ending in the current state 29
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fiscal year divided by the district's membership excluding special 1
education pupils for the school year ending in the current state 2
fiscal year. 3
Sec. 20d. In making the final determination required under 4
former section 20a of a district's combined state and local revenue 5
per membership pupil in 1993-94 and in making calculations under 6
section 20 for 2025-2026, 2026-2027, the department and the 7
department of treasury shall comply with all of the following: 8
(a) For a district that had combined state and local revenue 9
per membership pupil in the 1994-95 fiscal year of $6,500.00 or 10
more and served as a fiscal agent for a state board designated area 11
vocational education center in the 1993-94 school year, total state 12
school aid received by or paid on behalf of the district under this 13
act in 1993-94 excludes payments made under former section 146 and 14
under section 147 on behalf of the district's employees who 15
provided direct services to the area vocational education center. 16
Not later than June 30, 1996, the department shall make an 17
adjustment under this subdivision to the district's combined state 18
and local revenue per membership pupil in the 1994-95 fiscal year 19
and the department of treasury shall make a final certification of 20
the number of mills that may be levied by the district under 21
section 1211 of the revised school code, MCL 380.1211, as a result 22
of the adjustment under this subdivision. 23
(b) If a district had an adjustment made to its 1993-94 total 24
state school aid that excluded payments made under former section 25
146 and under section 147 on behalf of the district's employees who 26
provided direct services for intermediate district center programs 27
operated by the district under former section 51 and sections 51a 28
to 56, if nonresident pupils attending the center programs were 29
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included in the district's membership for purposes of calculating 1
the combined state and local revenue per membership pupil for 1993-2
94, and if there is a signed agreement by all constituent districts 3
of the intermediate district agreeing to an adjustment under this 4
subdivision, the department shall calculate the foundation 5
allowances for 1995-96 and 1996-97 of all districts that had pupils 6
attending the intermediate district center program operated by the 7
district that had the adjustment as if their combined state and 8
local revenue per membership pupil for 1993-94 included resident 9
pupils attending the center program and excluded nonresident pupils 10
attending the center program. 11
Sec. 21b. (1) Subject to subsections (2) and (3), a district 12
shall use funds received under section 22a or 22b to support the 13
attendance of a district pupil who is an eligible student at an 14
eligible postsecondary institution under the postsecondary 15
enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or 16
under the career and technical preparation act, 2000 PA 258, MCL 17
388.1901 to 388.1913, by paying eligible charges on behalf of the 18
district pupil as required under those acts. 19
(2) A district is not required to pay transportation costs, 20
parking costs, or activity fees on behalf of an eligible student 21
for attendance at an eligible postsecondary institution as 22
described in subsection (1). 23
(3) A district may pay more money to an eligible postsecondary 24
institution on behalf of an eligible student than required under 25
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 26
to 388.524, or the career and technical preparation act, 2000 PA 27
258, MCL 388.1901 to 388.1913, and may use local school operating 28
revenue for that purpose. An eligible student is responsible for 29
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payment of the remainder of the costs associated with his or her 1
the eligible student's postsecondary enrollment that exceed the 2
amount the district is required to pay under the postsecondary 3
enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or the 4
career and technical preparation act, 2000 PA 258, MCL 388.1901 to 5
388.1913, and that are not paid by the district. As used in this 6
subsection, "local school operating revenue" means that term as 7
defined in section 22b. 8
(4) From the state school aid fund money appropriated in 9
section 11, there is allocated for 2025-2026 an amount not to 10
exceed $60,000,000.00 to reimburse districts for eligible charges 11
paid on behalf of eligible students to an eligible postsecondary 12
institution. 13
(5) To receive funds under subsection (4), a district must 14
provide a report of the district's dual enrollment participation, 15
and eligible charges paid by the district, to the department of 16
lifelong education, advancement, and potential in a form and manner 17
consistent with data reported to the center for school aid 18
purposes. The department of lifelong education, advancement, and 19
potential may require additional information be provided before 20
distributing funds under this section. 21
(6) If the allocation under subsection (4) is insufficient to 22
fully fund payments as calculated under subsection (4), the 23
department of lifelong education, advancement, and potential shall 24
prorate payments on an equal percentage basis. 25
(7) (4) As used in this section, "eligible charges", "eligible 26
student", and "eligible postsecondary institution" mean those terms 27
as defined in section 3 of the postsecondary enrollment options 28
act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3 of the 29
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career and technical preparation act, 2000 PA 258, MCL 388.1903, as 1
applicable. 2
Sec. 21f. (1) A primary district shall enroll an eligible 3
pupil in virtual courses in accordance with the provisions of this 4
section. A primary district shall not offer a virtual course to an 5
eligible pupil unless the virtual course is published in the 6
primary district's catalog of board-approved courses or in the 7
statewide catalog of virtual courses maintained by the Michigan 8
Virtual University pursuant to section 98. The primary district 9
shall also provide on its publicly accessible website a link to the 10
statewide catalog of virtual courses maintained by the Michigan 11
Virtual University. Unless the pupil is at least age 18 or is an 12
emancipated minor, a pupil must not be enrolled in a course that 13
meets virtually for more than 6 days in a school year without the 14
consent of the pupil's parent or legal guardian. 15
(2) Subject to subsection (3), a primary district shall enroll 16
an eligible pupil in up to 2 virtual courses as requested by the 17
pupil during an academic term, semester, or trimester. 18
(3) A pupil may be enrolled in more than 2 virtual courses in 19
a specific academic term, semester, or trimester if both of the 20
following conditions are met: 21
(a) The primary district has determined that it is in the best 22
interest of the pupil. 23
(b) The pupil agrees with the recommendation of the primary 24
district. 25
(4) If the number of applicants eligible for acceptance in a 26
virtual course does not exceed the capacity of the provider to 27
provide the virtual course, the provider shall accept for 28
enrollment all of the applicants eligible for acceptance. If the 29
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number of applicants exceeds the provider's capacity to provide the 1
virtual course, the provider shall use a random draw system, 2
subject to the need to abide by state and federal 3
antidiscrimination laws and court orders. A primary district that 4
is also a provider shall determine whether or not it has the 5
capacity to accept applications for enrollment from nonresident 6
applicants in virtual courses and may use that limit as the reason 7
for refusal to enroll a nonresident applicant. 8
(5) A primary district may not establish additional 9
requirements beyond those specified in this subsection that would 10
prohibit a pupil from taking a virtual course. A pupil's primary 11
district may deny the pupil enrollment in a virtual course if any 12
of the following apply, as determined by the district: 13
(a) The pupil is enrolled in any of grades K to 5. 14
(b) The pupil has previously gained the credits that would be 15
provided from the completion of the virtual course. 16
(c) The virtual course is not capable of generating academic 17
credit. 18
(d) The virtual course is inconsistent with the remaining 19
graduation requirements or career interests of the pupil. 20
(e) The pupil has not completed the prerequisite coursework 21
for the requested virtual course or has not demonstrated 22
proficiency in the prerequisite course content. 23
(f) The pupil has failed a previous virtual course in the same 24
subject during the 2 most recent academic years. 25
(g) The virtual course is of insufficient quality or rigor. A 26
primary district that denies a pupil enrollment request for this 27
reason shall enroll the pupil in a virtual course in the same or a 28
similar subject that the primary district determines is of 29
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acceptable rigor and quality. 1
(h) The cost of the virtual course exceeds the amount 2
identified in subsection (10), unless the pupil or the pupil's 3
parent or legal guardian agrees to pay the cost that exceeds this 4
amount. 5
(i) The request for a virtual course enrollment did not occur 6
within the same timelines established by the primary district for 7
enrollment and schedule changes for regular courses. 8
(j) The request for a virtual course enrollment was not made 9
in the academic term, semester, trimester, or summer preceding the 10
enrollment. This subdivision does not apply to a request made by a 11
pupil who is newly enrolled in the primary district. 12
(6) If a pupil is denied enrollment in a virtual course by the 13
pupil's primary district, the primary district shall provide 14
written notification to the pupil of the denial, the reason or 15
reasons for the denial under subsection (5), and a description of 16
the appeal process. The pupil may appeal the denial by submitting a 17
letter to the superintendent of the intermediate district in which 18
the pupil's primary district is located. The letter of appeal must 19
include the reason provided by the primary district for not 20
enrolling the pupil and the reason why the pupil is claiming that 21
the enrollment should be approved. The intermediate district 22
superintendent or designee shall respond to the appeal within 5 23
days after it is received. If the intermediate district 24
superintendent or designee determines that the denial of enrollment 25
does not meet 1 or more of the reasons specified in subsection (5), 26
the primary district shall enroll the pupil in the virtual course. 27
(7) To provide a virtual course to an eligible pupil under 28
this section, a provider must do all of the following: 29
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(a) Ensure that the virtual course has been published in the 1
pupil's primary district's catalog of board-approved courses or 2
published in the statewide catalog of virtual courses maintained by 3
the Michigan Virtual University. 4
(b) Assign to each pupil a teacher of record and provide the 5
primary district with the personnel identification code assigned by 6
the center for the teacher of record. If the provider is a 7
community college, the virtual course must be taught by an 8
instructor employed by or contracted through the providing 9
community college. 10
(c) Offer the virtual course on an open entry and exit method, 11
or aligned to a semester, trimester, or accelerated academic term 12
format. 13
(d) If the virtual course is offered to eligible pupils in 14
more than 1 district, the following additional requirements must 15
also be met: 16
(i) Provide the Michigan Virtual University with a course 17
syllabus that meets the definition under subsection (14)(g) in a 18
form and manner prescribed by the Michigan Virtual University for 19
inclusion in a statewide catalog of virtual courses. 20
(ii) Not later than October 1 of each fiscal year, provide the 21
Michigan Virtual University with an aggregated count of enrollments 22
for each virtual course the provider delivered to pupils under this 23
section during the immediately preceding school year, and the 24
number of enrollments in which the pupil earned 60% or more of the 25
total course points for each virtual course. 26
(8) To provide a virtual course under this section, a 27
community college shall ensure that each virtual course it provides 28
under this section generates postsecondary credit. 29
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(9) For any virtual course a pupil enrolls in under this 1
section, the pupil's primary district must assign to the pupil a 2
mentor and shall supply the provider with the mentor's contact 3
information. 4
(10) For a pupil enrolled in 1 or more virtual courses, the 5
primary district shall use foundation allowance or per-pupil funds 6
calculated under section 20 to pay for the expenses associated with 7
the virtual course or courses. A primary district is not required 8
to pay toward the cost of a virtual course an amount that exceeds 9
6.67% of the target foundation allowance for the current fiscal 10
year as calculated under section 20. 11
(11) A virtual learning pupil has the same rights and access 12
to technology in the pupil's primary district's school facilities 13
as all other pupils enrolled in the pupil's primary district. The 14
department shall establish standards for hardware, software, and 15
internet access for pupils who are enrolled in more than 2 virtual 16
courses under this section in an academic term, semester, or 17
trimester taken at a location other than a school facility. 18
(12) If a pupil successfully completes a virtual course, as 19
determined by the pupil's primary district, the pupil's primary 20
district shall grant appropriate academic credit for completion of 21
the course and shall count that credit toward completion of 22
graduation and subject area requirements. A pupil's school record 23
and transcript must identify the virtual course title as it appears 24
in the virtual course syllabus. 25
(13) The enrollment of a pupil in 1 or more virtual courses 26
must not result in a pupil being counted as more than 1.0 full-time 27
equivalent pupils under this article. The minimum requirements to 28
count the pupil in membership are those established by the pupil 29
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accounting manual as it was in effect for the 2015-2016 school year 1
or as subsequently amended by the department if the department 2
notifies the legislature about the proposed amendment at least 60 3
days before the amendment becomes effective. 4
(14) Subject to the requirements of this subsection, a 5
district may provide virtual instruction under this subsection for 6
not more than 6 days in a school year. If a district plans to 7
provide instruction under this subsection to pupils for more than 6 8
days during a school year, the district's plan must be approved by 9
the board of the district, and the district must provide notice of 10
the plan to impacted pupils and their parents or legal guardians 11
before enactment of the plan. Instruction may be provided 12
synchronously or asynchronously, as determined by the department. 13
Days of instruction under this subsection may be used only for the 14
following purposes, as defined by the department: 15
(a) A maximum of 3 days may be designated as testing days, 16
during which students are released from regular classroom 17
instruction to participate in state or federally mandated 18
assessments. Days of virtual instruction provided under this 19
subdivision are limited to buildings and grade levels impacted by 20
assessments. 21
(b) A maximum of 3 days of virtual instruction may be provided 22
due to conditions not within control of the district, including, 23
but not limited to, closures due to snow, ice, or other extreme 24
weather events or unforeseen emergencies. Days of virtual 25
instruction under this subdivision may be used only after a 26
district has exhausted all emergency closure days permitted under 27
section 101. 28
(15) The department shall promulgate rules for the conditions 29
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under which virtual instruction may be provided under subsection 1
(14) and the manner in which it may be provided. 2
(16) (14) As used in this section: 3
(a) "Instructor" means an individual who is employed by or 4
contracted through a community college. 5
(b) "Mentor" means a professional employee of the primary 6
district who monitors the pupil's progress, ensures the pupil has 7
access to needed technology, is available for assistance, and 8
ensures access to the teacher of record. A mentor may also serve as 9
the teacher of record if the primary district is the provider for 10
the virtual course and the mentor meets the requirements under 11
subdivision (e). 12
(c) "Primary district" means the district that enrolls the 13
pupil and reports the pupil for pupil membership purposes. 14
(d) "Provider" means the district, intermediate district, 15
community college, or other third-party vendor that the primary 16
district pays to provide the virtual course or the Michigan Virtual 17
University if it is providing the virtual course. 18
(e) "Teacher of record" means a teacher who meets all of the 19
following: 20
(i) Is appropriately placed under a valid Michigan teaching 21
certificate or a teaching permit, authorization, or approval issued 22
by the department. As used in this subparagraph, "appropriately 23
placed" means holding a valid Michigan educator credential with the 24
required grade range and discipline or subject area for the 25
assignment, as defined by the superintendent of public instruction. 26
(ii) Is responsible for providing instruction, determining 27
instructional methods for each pupil, diagnosing learning needs, 28
assessing pupil learning, prescribing intervention strategies and 29
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modifying lessons, reporting outcomes, and evaluating the effects 1
of instruction and support strategies. 2
(iii) Has a personnel identification code provided by the 3
center. 4
(iv) If the provider is a community college, is an instructor 5
employed by or contracted through the providing community college. 6
(f) "Virtual course" means a course of study that is capable 7
of generating a credit or a grade and that is provided in an 8
interactive learning environment where any portion of the 9
curriculum is delivered using the internet and in which pupils may 10
be separated from their instructor or teacher of record by time or 11
location, or both. 12
(g) "Virtual course syllabus" means a document that includes 13
all of the following: 14
(i) An alignment document detailing how the course meets 15
applicable state standards or, if the state does not have state 16
standards, nationally recognized standards. 17
(ii) The virtual course content outline. 18
(iii) The virtual course required assessments. 19
(iv) The virtual course prerequisites. 20
(v) Expectations for actual instructor or teacher of record 21
contact time with the virtual learning pupil and other 22
communications between a pupil and the instructor or teacher of 23
record. 24
(vi) Academic support available to the virtual learning pupil. 25
(vii) The virtual course learning outcomes and objectives. 26
(viii) The name of the institution or organization providing the 27
virtual content. 28
(ix) The name of the institution or organization providing the 29
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instructor or teacher of record. 1
(x) The course titles assigned by the provider and the course 2
titles and course codes from the National Center for Education 3
Statistics (NCES) school codes for the exchange of data (SCED). 4
(xi) The number of eligible pupils that will be accepted by the 5
provider in the virtual course. A primary district that is also the 6
provider may limit the enrollment to those pupils enrolled in the 7
primary district. 8
(xii) The results of the virtual course quality review using 9
the guidelines and model review process published by the Michigan 10
Virtual University. 11
(h) "Virtual learning pupil" means a pupil enrolled in 1 or 12
more virtual courses. 13
Sec. 21h. (1) From the state school aid pupil support reserve 14
fund money appropriated in section 11, there is allocated 15
$6,137,400.00 for 2025-2026 2026-2027 for assisting districts 16
assigned by the superintendent to participate in a partnership 17
district agreement to improve student achievement and district 18
financial stability. It is the intent of the legislature that the 19
appropriation in this section will be funded with state school aid 20
pupil support reserve fund money through 2027-2028. The 21
superintendent shall identify any conditions that may be 22
contributing to low academic performance within a district being 23
considered for assignment to a partnership district agreement. The 24
purpose of the partnership district agreement is to identify 25
district needs, develop intervention plans, and partner with 26
public, private, and nonprofit organizations to coordinate 27
resources and improve student achievement. Assignment of a district 28
to a partnership district agreement is made by the superintendent. 29
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(2) A district described in subsection (1) is eligible for 1
funding under this section if the district includes at least 1 2
school that has been identified as low performing under the 3
approved federal accountability system. A district described in 4
this subsection must do all of the following to be eligible for 5
funding under this section: 6
(a) Within 90 days of assignment to the partnership district 7
agreement described in this section, complete a comprehensive needs 8
assessment or evaluation in collaboration with an intermediate 9
district, community members, education organizations, and 10
postsecondary institutions, as applicable, that is approved by the 11
superintendent. The comprehensive needs assessment or evaluation 12
must include at least all of the following: 13
(i) A review of the district's implementation and utilization 14
of a multi-tiered system of supports to ensure that it is used to 15
appropriately inform instruction. 16
(ii) A review of the district and school building leadership 17
and educator capacity to substantially improve student outcomes. 18
(iii) A review of classroom, instructional, and operational 19
practices and curriculum to ensure alignment with research-based 20
instructional practices and state curriculum standards. 21
(b) Develop a district continuous improvement plan that has 22
been approved by the superintendent and that addresses the needs 23
identified in the comprehensive needs assessment or evaluation 24
completed under subdivision (a). The district continuous 25
improvement plan must include at least all of the following: 26
(i) Specific actions that will be taken by the district and 27
each of its partners to improve student achievement. 28
(ii) Specific measurable benchmarks that will be met within 18 29
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months to improve student achievement and identification of 1
expected student achievement outcomes to be attained within 3 years 2
after assignment to the partnership. 3
(iii) Measurable benchmarks that put pupils on track to meet or 4
exceed grade level proficiency, increase high school graduation 5
rates, reduce class sizes in grades K to 3, and improve attendance 6
rates. 7
(c) Provide access to training for district leadership, 8
including, but not limited to, the superintendent or chief 9
administrator and school board or board of directors members, on 10
areas of education fiscal and policy matters. The department may 11
require training for district leadership and all board members 12
under this subdivision at a rate and frequency needed to support 13
measurable academic outcomes for the district. 14
(3) Upon approval of the district continuous improvement plan 15
developed under subsection (2), the department shall assign a team 16
of individuals with expertise in comprehensive school and district 17
reform to partner with the district, the intermediate district, 18
community organizations, education organizations, and postsecondary 19
institutions identified in the academic and financial operating or 20
intervention district continuous improvement plan to review the 21
district's use of existing financial resources to ensure that those 22
resources are being used as efficiently and effectively as possible 23
to improve student academic achievement and to ensure district 24
financial stability. The superintendent of public instruction may 25
waive burdensome administrative rules for a partnership district 26
for the duration of the partnership district agreement. 27
(4) Funds allocated under this section, excluding funds 28
allocated under subsection (5), may be used to pay for district 29
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expenditures approved by the superintendent to improve student 1
achievement. Funds may be used for professional development for 2
teachers or district or school leadership, increased instructional 3
time, teacher mentors, literacy, numeracy, reducing K-3 class 4
sizes, reducing chronic absenteeism, or other expenditures that 5
directly impact student achievement and cannot be paid from 6
existing district financial resources. Notwithstanding section 17b, 7
the department shall make payments to districts under this section 8
on a schedule determined by the department. 9
(5) From the funds allocated under subsection (1), there is 10
allocated for 2025-2026 2026-2027 an amount not to exceed 11
$137,400.00 for the purchase of a data analytics tool to be used by 12
districts described in subsection (1). The superintendent of public 13
instruction shall require districts described in subsection (1) to 14
purchase a data analytics tool funded under this subsection as part 15
of the agreements described in this section. 16
(6) The department shall annually report to the legislature on 17
the activities funded under this section and how those activities 18
impacted student achievement in districts that received funds under 19
this section. To the extent possible, participating districts 20
receiving funding under this section shall participate in the 21
report. 22
(7) In addition to the allocation under subsection (1), from 23
the state school aid fund money appropriated in section 11, there 24
is allocated an amount not to exceed $36,000,000.00 to districts 25
described in subsection (1) for 2023-2024 only for supplemental 26
funding to be used by districts for the purposes of this section in 27
equal installments of $12,000,000.00 in each of the fiscal years 28
2023-2024, 2024-2025, and 2025-2026. The funds allocated under this 29
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subsection for 2023-2024 are a work project appropriation, and any 1
unexpended funds for 2023-2024 are carried forward into 2024-2025. 2
The purpose of the work project is to provide assistance to 3
districts eligible for funding under this section. The estimated 4
completion date of the work project described in this subsection is 5
September 30, 2026. 6
Sec. 22a. (1) From the state school aid fund money 7
appropriated in section 11, there is allocated an amount not to 8
exceed $3,927,000,000.00 for 2024-2025 and there is allocated an 9
amount not to exceed $3,785,000,000.00 $3,711,000,000.00 for 2025-10
2026 and there is allocated an amount not to exceed 11
$3,564,000,000.00 for 2026-2027 for payments to districts and 12
qualifying public school academies to guarantee each district and 13
qualifying public school academy an amount equal to its 1994-95 14
total state and local per-pupil revenue for school operating 15
purposes under section 11 of article IX of the state constitution 16
of 1963. Pursuant to section 11 of article IX of the state 17
constitution of 1963, this guarantee does not apply to a district 18
in a year in which the district levies a millage rate for school 19
district operating purposes less than it levied in 1994. However, 20
subsection (2) applies to calculating the payments under this 21
section. Funds allocated under this section that are not expended 22
in the fiscal year for which they were allocated, as determined by 23
the department, may be used to supplement the allocations under 24
sections 22b and 51c to fully fund those allocations for the same 25
fiscal year. 26
(2) To ensure that a district receives an amount equal to the 27
district's 1994-95 total state and local per-pupil revenue for 28
school operating purposes, there is allocated to each district a 29
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state portion of the district's 1994-95 foundation allowance in an 1
amount calculated as follows: 2
(a) Except as otherwise provided in this subsection, the state 3
portion of a district's 1994-95 foundation allowance is an amount 4
equal to the district's 1994-95 foundation allowance or $6,500.00, 5
whichever is less, minus the difference between the sum of the 6
product of the taxable value per membership pupil of all property 7
in the district that is nonexempt property times the district's 8
certified mills and, for a district with certified mills exceeding 9
12, the product of the taxable value per membership pupil of 10
property in the district that is commercial personal property times 11
the certified mills minus 12 mills and the quotient of the ad 12
valorem property tax revenue of the district captured under tax 13
increment financing acts divided by the district's membership. For 14
a district that has a millage reduction required under section 31 15
of article IX of the state constitution of 1963, the department 16
shall calculate the state portion of the district's foundation 17
allowance as if that reduction did not occur. For a receiving 18
district, if school operating taxes are to be levied on behalf of a 19
dissolved district that has been attached in whole or in part to 20
the receiving district to satisfy debt obligations of the dissolved 21
district under section 12 of the revised school code, MCL 380.12, 22
taxable value per membership pupil of all property in the receiving 23
district that is nonexempt property and taxable value per 24
membership pupil of property in the receiving district that is 25
commercial personal property do not include property within the 26
geographic area of the dissolved district; ad valorem property tax 27
revenue of the receiving district captured under tax increment 28
financing acts does not include ad valorem property tax revenue 29
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captured within the geographic boundaries of the dissolved district 1
under tax increment financing acts; and certified mills do not 2
include the certified mills of the dissolved district. For Except 3
as otherwise provided in this subdivision, for a community 4
district, the department shall reduce the allocation as otherwise 5
calculated under this section by an amount equal to the amount of 6
local school operating tax revenue that would otherwise be due to 7
the community district if not for the operation of section 386 of 8
the revised school code, MCL 380.386, and the amount of this 9
reduction is offset by the increase in funding under section 10
22b(2). Beginning with the fiscal year ending September 30, 2027, 11
it is the intent of the legislature that the previous sentence no 12
longer applies and the allocation for a community district under 13
this section shall not be reduced by the amount of local school 14
operating tax revenue that would otherwise be due to the community 15
district if not for the operation of section 386 of the revised 16
school code, MCL 380.386, and no offset is provided by increased 17
funding under section 22b(2). 18
(b) For a district that had a 1994-95 foundation allowance 19
greater than $6,500.00, the state payment under this subsection is 20
the sum of the amount calculated under subdivision (a) plus the 21
amount calculated under this subdivision. The amount calculated 22
under this subdivision must be equal to the difference between the 23
district's 1994-95 foundation allowance minus $6,500.00 and the 24
current year hold harmless school operating taxes per pupil. If the 25
result of the calculation under subdivision (a) is negative, the 26
negative amount is an offset against any state payment calculated 27
under this subdivision. If the result of a calculation under this 28
subdivision is negative, there is not a state payment or a 29
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deduction under this subdivision. The taxable values per membership 1
pupil used in the calculations under this subdivision are as 2
adjusted by ad valorem property tax revenue captured under tax 3
increment financing acts divided by the district's membership. For 4
a receiving district, if school operating taxes are to be levied on 5
behalf of a dissolved district that has been attached in whole or 6
in part to the receiving district to satisfy debt obligations of 7
the dissolved district under section 12 of the revised school code, 8
MCL 380.12, ad valorem property tax revenue captured under tax 9
increment financing acts do not include ad valorem property tax 10
revenue captured within the geographic boundaries of the dissolved 11
district under tax increment financing acts. 12
(3) For pupils in membership in a qualifying public school 13
academy, there is allocated under this section to the authorizing 14
body that is the fiscal agent for the qualifying public school 15
academy for forwarding to the qualifying public school academy an 16
amount equal to the 1994-95 per-pupil payment to the qualifying 17
public school academy under section 20. 18
(4) A district or qualifying public school academy may use 19
funds allocated under this section in conjunction with any federal 20
funds for which the district or qualifying public school academy 21
otherwise would be eligible. 22
(5) Except as otherwise provided in this subsection, for a 23
district that is formed or reconfigured after June 1, 2000 by 24
consolidation of 2 or more districts or by annexation, the 25
resulting district's 1994-95 foundation allowance under this 26
section beginning after the effective date of the consolidation or 27
annexation is the average of the 1994-95 foundation allowances of 28
each of the original or affected districts, calculated as provided 29
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in this section, weighted as to the percentage of pupils in total 1
membership in the resulting district in the fiscal year in which 2
the consolidation takes place who reside in the geographic area of 3
each of the original districts. If an affected district's 1994-95 4
foundation allowance is less than the 1994-95 basic foundation 5
allowance, the amount of that district's 1994-95 foundation 6
allowance is considered for the purpose of calculations under this 7
subsection to be equal to the amount of the 1994-95 basic 8
foundation allowance. This subsection does not apply to a receiving 9
district unless there is a subsequent consolidation or annexation 10
that affects the district. 11
(6) Payments under this section are subject to section 25g. 12
(6) (7) As used in this section: 13
(a) "1994-95 foundation allowance" means a district's 1994-95 14
foundation allowance calculated and certified by the department of 15
treasury or the superintendent under former section 20a as enacted 16
in 1993 PA 336 and as amended by 1994 PA 283. 17
(b) "Certified mills" means the lesser of 18 mills or the 18
number of mills of school operating taxes levied by the district in 19
1993-94. 20
(c) "Current fiscal year" means the fiscal year for which a 21
particular calculation is made. 22
(d) "Current year hold harmless school operating taxes per 23
pupil" means the per-pupil revenue generated by multiplying a 24
district's 1994-95 hold harmless millage by the district's current 25
year taxable value per membership pupil. For a receiving district, 26
if school operating taxes are to be levied on behalf of a dissolved 27
district that has been attached in whole or in part to the 28
receiving district to satisfy debt obligations of the dissolved 29
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district under section 12 of the revised school code, MCL 380.12, 1
taxable value per membership pupil does not include the taxable 2
value of property within the geographic area of the dissolved 3
district. 4
(e) "Dissolved district" means a district that loses its 5
organization, has its territory attached to 1 or more other 6
districts, and is dissolved as provided under section 12 of the 7
revised school code, MCL 380.12. 8
(f) "Hold harmless millage" means, for a district with a 1994-9
95 foundation allowance greater than $6,500.00, the number of mills 10
by which the exemption from the levy of school operating taxes on a 11
principal residence, qualified agricultural property, qualified 12
forest property, supportive housing property, industrial personal 13
property, commercial personal property, and property occupied by a 14
public school academy could be reduced as provided in section 1211 15
of the revised school code, MCL 380.1211, and the number of mills 16
of school operating taxes that could be levied on all property as 17
provided in section 1211(2) of the revised school code, MCL 18
380.1211, as certified by the department of treasury for the 1994 19
tax year. For a receiving district, if school operating taxes are 20
to be levied on behalf of a dissolved district that has been 21
attached in whole or in part to the receiving district to satisfy 22
debt obligations of the dissolved district under section 12 of the 23
revised school code, MCL 380.12, school operating taxes do not 24
include school operating taxes levied within the geographic area of 25
the dissolved district. 26
(g) "Membership" means the definition of that term under 27
section 6 as in effect for the particular fiscal year for which a 28
particular calculation is made. 29
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(h) "Nonexempt property" means property that is not a 1
principal residence, qualified agricultural property, qualified 2
forest property, supportive housing property, industrial personal 3
property, commercial personal property, or property occupied by a 4
public school academy. 5
(i) "Principal residence", "qualified agricultural property", 6
"qualified forest property", "supportive housing property", 7
"industrial personal property", and "commercial personal property" 8
mean those terms as defined in section 1211 of the revised school 9
code, MCL 380.1211. 10
(j) "Qualifying public school academy" means a public school 11
academy that was in operation in the 1994-95 school year and is in 12
operation in the current fiscal year. 13
(k) "Receiving district" means a district to which all or part 14
of the territory of a dissolved district is attached under section 15
12 of the revised school code, MCL 380.12. 16
(l) "School operating taxes" means local ad valorem property 17
taxes levied under section 1211 of the revised school code, MCL 18
380.1211, and retained for school operating purposes as defined in 19
section 20. 20
(m) "Tax increment financing acts" means parts 2, 3, 4, and 6 21
of the recodified tax increment financing act, 2018 PA 57, MCL 22
125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield 23
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. 24
(n) "Taxable value per membership pupil" means each of the 25
following divided by the district's membership: 26
(i) For the number of mills by which the exemption from the 27
levy of school operating taxes on a principal residence, qualified 28
agricultural property, qualified forest property, supportive 29
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housing property, industrial personal property, commercial personal 1
property, and property occupied by a public school academy may be 2
reduced as provided in section 1211 of the revised school code, MCL 3
380.1211, the taxable value of principal residence, qualified 4
agricultural property, qualified forest property, supportive 5
housing property, industrial personal property, commercial personal 6
property, and property occupied by a public school academy for the 7
calendar year ending in the current fiscal year. For a receiving 8
district, if school operating taxes are to be levied on behalf of a 9
dissolved district that has been attached in whole or in part to 10
the receiving district to satisfy debt obligations of the dissolved 11
district under section 12 of the revised school code, MCL 380.12, 12
mills do not include mills within the geographic area of the 13
dissolved district. 14
(ii) For the number of mills of school operating taxes that may 15
be levied on all property as provided in section 1211(2) of the 16
revised school code, MCL 380.1211, the taxable value of all 17
property for the calendar year ending in the current fiscal year. 18
For a receiving district, if school operating taxes are to be 19
levied on behalf of a dissolved district that has been attached in 20
whole or in part to the receiving district to satisfy debt 21
obligations of the dissolved district under section 12 of the 22
revised school code, MCL 380.12, school operating taxes do not 23
include school operating taxes levied within the geographic area of 24
the dissolved district. 25
Sec. 22b. (1) Except as otherwise provided in this section, 26
for discretionary nonmandated payments to districts under this 27
section, there is allocated for 2024-2025 an amount not to exceed 28
$6,220,000,000.00 from the state school aid fund and general fund 29
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appropriations in section 11 and an amount not to exceed 1
$41,000,000.00 from the community district education trust fund 2
appropriation in section 11, and there is allocated for 2025-2026 3
an amount not to exceed $6,696,500,000.00 $6,657,000,000.00 from 4
the state school aid fund and general fund appropriations in 5
section 11, and there is allocated for 2026-2027 an amount not to 6
exceed $6,925,850,000.00 from the state school aid fund and general 7
fund appropriations in section 11. In addition, there is allocated 8
for 2025-2026 only an amount not to exceed $124,000,000.00 from the 9
state school aid fund appropriation in section 11, . For 2024-2025, 10
the amount necessary, estimated at $77,700,000.00, must be 11
deposited from the general fund into the state school aid fund to 12
reimburse the state school aid fund for community district 13
education trust fund costs in excess of $41,000,000.00, as required 14
under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 15
12.262. For 2024-2025 only, if the amount allocated under this 16
subsection from the community district education trust fund 17
appropriation under section 11 is insufficient to pay for an 18
increase under this section, any amount exceeding that allocation 19
may be paid from other allocations under this subsection. and there 20
is allocated for 2026-2027 only an amount not to exceed 21
$130,000,000.00 from the enrollment stabilization fund 22
appropriation in section 11. Except for money allocated under this 23
section from the community district education trust fund 24
appropriation in section 11, funds allocated under this section 25
that are not expended in the fiscal year for which they were 26
allocated, as determined by the department, may be used to 27
supplement the allocations under sections 22a and 51c to fully fund 28
those allocations for the same fiscal year. 29
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(2) Subject to subsection (3) (4) and section 296, the 1
allocation to a district under this section subsection (1) is an 2
amount equal to the sum of the amounts calculated under sections 3
20, 20m, 51a(2), 51a(3), 51a(11), and 51e, minus the sum of the 4
allocations to the district under sections 22a and 51c. For Except 5
as otherwise provided in this subsection, for a community district, 6
the allocation as otherwise calculated under this section is 7
increased by an amount equal to the amount of local school 8
operating tax revenue that would otherwise be due to the community 9
district if not for the operation of section 386 of the revised 10
school code, MCL 380.386, to offset the absence of local school 11
operating revenue in a community district in the funding of the 12
state portion of the foundation allowance under section 20(4). , 13
and, for 2024-2025 only, this increase must be paid from the 14
community district education trust fund allocation in subsection 15
(1).Beginning with the fiscal year ending September 30, 2027, it is 16
the intent of the legislature that the previous sentence no longer 17
applies. 18
(3) To receive an allocation under subsection (1), this 19
section, each district must do all of the following: 20
(a) Comply with section 1280b of the revised school code, MCL 21
380.1280b. 22
(b) Comply with sections 1278a and 1278b of the revised school 23
code, MCL 380.1278a and 380.1278b. 24
(c) Furnish data and other information required by state and 25
federal law to the center and the department in the form and manner 26
specified by the center or the department, as applicable. 27
(d) Comply with section 1230g of the revised school code, MCL 28
380.1230g. 29
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(e) Comply with section 21f. 1
(f) For a district that has entered into a partnership 2
district agreement with the department, comply with section 22p. 3
(g) Comply with section 1280h of the revised school code, MCL 4
380.1280h. 5
(h) Comply with section 1280f of the revised school code, MCL 6
380.1280f. Beginning with the fiscal year ending September 30, 7
2026, if a district is not using a curriculum from the department's 8
evidence-based curriculum list required under section 1280f of the 9
revised school code, MCL 380.1280f, the district must provide a 10
notification to all parents or legal guardians of students in 11
grades K to 5 receiving instruction with that curriculum that 12
includes all of the following: 13
(i) A statement informing parents or legal guardians that the 14
curriculum used by the district is not evidence-based or not 15
aligned to state standards, which could negatively impact student 16
academic outcomes. 17
(ii) A statement explaining why the district is not using a 18
curriculum that is evidence-based or aligned to state standards. 19
(iii) A plan, including a projected timeline, for when a new 20
curriculum will be adopted that is evidence-based and aligned to 21
state standards. 22
(4) In addition to the allocation under subsection (1), and 23
subject to subsection (3) and section 296, from the state school 24
aid fund money appropriated in section 11 there is allocated an 25
amount not to exceed $1,696,087,600.00 to each district for a 26
weighted foundation payment. As used in this subsection, "weighted 27
foundation payment" is an amount equal to the target foundation 28
allowance multiplied by the weighted pupil membership for the 29
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district. 1
(5) (4) Districts are encouraged to use funds allocated under 2
this section for the purchase and support of payroll, human 3
resources, and other business function software that is compatible 4
with that of the intermediate district in which the district is 5
located and with other districts located within that intermediate 6
district. 7
(6) (5) From the allocation in subsection (1), the department 8
shall pay up to $1,000,000.00 in litigation costs incurred by this 9
state related to commercial or industrial property tax appeals, 10
including, but not limited to, appeals of classification, that 11
impact revenues dedicated to the state school aid fund. 12
(7) (6) From the allocation in subsection (1), the department 13
shall pay up to $1,000,000.00 in litigation costs incurred by this 14
state associated with lawsuits filed by 1 or more districts or 15
intermediate districts against this state. If the allocation under 16
this section is insufficient to fully fund all payments required 17
under this section, the payments under this subsection must be made 18
in full before any proration of remaining payments under this 19
section. 20
(8) (7) It is the intent of the legislature that all 21
constitutional obligations of this state have been fully funded 22
under sections 22a, 31d, 51a, 51c, 51e, and 152a. If a claim is 23
made by an entity receiving funds under this article that 24
challenges the legislative determination of the adequacy of this 25
funding or alleges that there exists an unfunded constitutional 26
requirement, the state budget director may escrow or allocate from 27
the discretionary funds for nonmandated payments under this section 28
the amount as may be necessary to satisfy the claim before making 29
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any payments to districts under subsection (2). If funds are 1
escrowed, the escrowed funds are a work project appropriation and 2
the funds are carried forward into the following fiscal year. The 3
purpose of the work project is to provide for any payments that may 4
be awarded to districts as a result of litigation. The work project 5
is completed upon resolution of the litigation. 6
(9) (8) If the local claims review board or a court of 7
competent jurisdiction makes a final determination that this state 8
is in violation of section 29 of article IX of the state 9
constitution of 1963 regarding state payments to districts, the 10
state budget director shall use work project funds under subsection 11
(7) (8) or allocate from the discretionary funds for nonmandated 12
payments under this section the amount as may be necessary to 13
satisfy the amount owed to districts before making any payments to 14
districts under subsection (2). 15
(10) (9) If a claim is made in court that challenges the 16
legislative determination of the adequacy of funding for this 17
state's constitutional obligations or alleges that there exists an 18
unfunded constitutional requirement, any interested party may seek 19
an expedited review of the claim by the local claims review board. 20
If the claim exceeds $10,000,000.00, this state may remove the 21
action to the court of appeals, and the court of appeals has and 22
shall exercise jurisdiction over the claim. 23
(11) (10) If payments resulting from a final determination by 24
the local claims review board or a court of competent jurisdiction 25
that there has been a violation of section 29 of article IX of the 26
state constitution of 1963 exceed the amount allocated for 27
discretionary nonmandated payments under this section, the 28
legislature shall provide for adequate funding for this state's 29
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constitutional obligations at its next legislative session. 1
(12) (11) If a lawsuit challenging payments made to districts 2
related to costs reimbursed by federal title XIX Medicaid funds is 3
filed against this state, then, for the purpose of addressing 4
potential liability under such a lawsuit, the state budget director 5
may place funds allocated under this section in escrow or allocate 6
money from the funds otherwise allocated under this section, up to 7
a maximum of 50% of the amount allocated in subsection (1). If 8
funds are placed in escrow under this subsection, those funds are a 9
work project appropriation and the funds are carried forward into 10
the following fiscal year. The purpose of the work project is to 11
provide for any payments that may be awarded to districts as a 12
result of the litigation. The work project is completed upon 13
resolution of the litigation. In addition, this state reserves the 14
right to terminate future federal title XIX Medicaid reimbursement 15
payments to districts if the amount or allocation of reimbursed 16
funds is challenged in the lawsuit. As used in this subsection, 17
"title XIX" means title XIX of the social security act, 42 USC 1396 18
to 1396w-6. 19
(13) (12) As used in this section: 20
(a) "Dissolved district" means that term as defined in section 21
20. 22
(b) "Local school operating revenue" means school operating 23
taxes levied under section 1211 of the revised school code, MCL 24
380.1211. For a receiving district, if school operating taxes are 25
to be levied on behalf of a dissolved district that has been 26
attached in whole or in part to the receiving district to satisfy 27
debt obligations of the dissolved district under section 12 of the 28
revised school code, MCL 380.12, local school operating revenue 29
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does not include school operating taxes levied within the 1
geographic area of the dissolved district. 2
(c) "Receiving district" and "school operating taxes" mean 3
those terms as defined in section 20. 4
(d) "Weighted pupil membership" means that term as defined in 5
section 6. 6
Sec. 22d. (1) From the state school aid fund money 7
appropriated under section 11, an amount not to exceed 8
$12,873,100.00 $13,772,300.00 is allocated for 2025-2026 2026-2027 9
for supplemental payments to rural districts under this section. 10
(2) From the allocation under subsection (1), there is 11
allocated for 2025-2026 2026-2027 an amount not to exceed 12
$3,906,200.00 $4,179,100.00 for payments under this subsection to 13
eligible districts. A district that meets all of the following is 14
an eligible district under this subsection: 15
(a) Operates grades K to 12. 16
(b) Has fewer than 250 pupils in membership. 17
(c) Each school building operated by the district meets at 18
least 1 of the following: 19
(i) Is located in the Upper Peninsula at least 30 miles from 20
any other public school building. 21
(ii) Is located on an island that is not accessible by bridge. 22
(3) The amount of the additional funding to each eligible 23
district under subsection (2) is determined under a spending plan 24
developed as provided in this subsection and approved by the 25
superintendent of public instruction. The spending plan must be 26
developed cooperatively by the intermediate superintendents of each 27
intermediate district in which an eligible district is located. The 28
intermediate superintendents shall review the financial situation 29
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of each eligible district, determine the minimum essential 1
financial needs of each eligible district, and develop and agree on 2
a spending plan that distributes the available funding under 3
subsection (2) to the eligible districts based on those financial 4
needs. The intermediate superintendents shall submit the spending 5
plan to the superintendent of public instruction for approval. Upon 6
approval by the superintendent of public instruction, the amounts 7
specified for each eligible district under the spending plan are 8
allocated under subsection (2) and must be paid to the eligible 9
districts in the same manner as payments under section 22b. 10
(4) Subject to subsection (7), from the allocation in 11
subsection (1), there is allocated for 2025-2026 2026-2027 an 12
amount not to exceed $8,412,100.00 $8,999,700.00 for payments under 13
this subsection to districts that have fewer than 10.0 pupils per 14
square mile, as determined by the department, or that have greater 15
than 250 square miles. 16
(5) The funds allocated under subsection (4) are allocated as 17
follows: 18
(a) An amount equal to $6,373,700.00 $6,818,900.00 is 19
allocated to districts with fewer than 8.0 pupils per square mile, 20
as determined by the department, on an equal per-pupil basis. 21
(b) The balance of the funding under subsection (4) is 22
allocated as follows: 23
(i) For districts with at least 8.0 but fewer than 9.0 pupils 24
per square mile, as determined by the department, the allocation is 25
an amount per pupil equal to 75% of the per-pupil amount allocated 26
to districts under subdivision (a). 27
(ii) For districts with at least 9.0 but fewer than 10.0 pupils 28
per square mile, as determined by the department, the allocation is 29
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an amount per pupil equal to 50% of the per-pupil amount allocated 1
to districts under subdivision (a). 2
(iii) For districts that have greater than 250 square miles, 3
have at least 10.0 pupils per square mile, and do not receive 4
funding under subsection (2), as determined by the department, the 5
allocation is an amount per pupil equal to 100% of the per-pupil 6
amount allocated to districts under subdivision (a). 7
(c) If the total funding allocated under subdivision (b) is 8
insufficient to fully fund payments as calculated under that 9
subdivision, the department shall prorate payments to districts 10
under subdivision (b) on an equal per-pupil basis. If funding 11
allocated under subdivision (b) remains unallocated after making 12
calculations under that subdivision, the department may provide the 13
remaining unallocated funding on an equal per-pupil basis to 14
districts receiving funding under subdivision (b)(i) and (ii). 15
(6) Subject to subsection (7), from the allocation under 16
subsection (1), there is allocated for 2025-2026 2026-2027 an 17
amount not to exceed $554,800.00 $593,500.00 for payments under 18
this subsection to districts where each school building operated by 19
the district is located on an island that is accessible by bridge. 20
(7) A district receiving funds allocated under subsection (2) 21
is not eligible for funding allocated under subsection (4) or (6). 22
A district receiving funds allocated under subsection (6) is not 23
eligible for funding under subsection (2) or (4). 24
Sec. 22k. (1) The school transportation fund is created as a 25
separate account within the state school aid fund for the purpose 26
of supporting district transportation costs. 27
(2) The state treasurer may receive money or other assets from 28
any source for deposit into the school transportation fund. The 29
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state treasurer shall direct the investment of the school 1
transportation fund. The state treasurer shall credit to the school 2
transportation fund interest and earnings from school 3
transportation fund investments. 4
(3) Money in the school transportation fund at the close of 5
the fiscal year remains in the school transportation fund and does 6
not lapse to the state school aid fund or the general fund. 7
(4) The department of treasury is the administrator of the 8
school transportation fund for auditing purposes. 9
(5) Money available in the school transportation fund must not 10
be expended without a specific appropriation. 11
(6) For the fiscal year ending September 30, 2026 2027 only, 12
$130,000,000.00 $150,000,000.00 from the state school aid fund must 13
be deposited into the school transportation fund. 14
Sec. 22l. (1) From the school transportation fund money 15
appropriated under section 11, there is allocated for 2025-2026 16
2026-2027 only an amount not to exceed $125,000,000.00, and from 17
the state school aid fund money appropriated under section 11, 18
there is allocated for 2026-2027 only an amount not to exceed 19
$25,000,000.00 to districts and intermediate districts for 20
transportation costs. Funding for each district or intermediate 21
district is as follows: 22
(a) The department must assign each district and intermediate 23
district to an octile based on the number of riders per square mile 24
and calculate the median cost per rider for each octile. 25
(b) Funds must be distributed to each district and 26
intermediate district as follows: 27
(i) An initial amount at the lesser of the octile's median cost 28
per rider or the actual transportation cost per general education 29
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rider at the district or intermediate district. 1
(ii) An additional amount for districts and intermediate 2
districts that have outlier costs per rider that are deemed 3
reasonable, as determined by the department. 4
(c) If funds are insufficient to fully fund payments under 5
this section, payments may be prorated on an equal percentage 6
basis. 7
(2) In addition to the funds allocated under subsection (1), 8
from the school transportation fund money appropriated under 9
section 11, there is allocated for 2022-2023 only an amount not to 10
exceed $200,000.00 to an intermediate district for a study on 11
district transportation costs. The intermediate district receiving 12
funds under this subsection must submit a report to the department, 13
the state budget director, the house and senate appropriations 14
subcommittees on school aid, and the house and senate fiscal 15
agencies by February 29, 2024 on the outcomes of the study under 16
this subsection. Notwithstanding section 18a, funds allocated under 17
this subsection may be available for expenditure until September 18
30, 2026. A recipient of funding under this subsection must return 19
any unexpended funds to the department in a manner prescribed by 20
the department by not later than October 30, 2026. 21
(2) (3) To remain eligible for funding under subsection (1), 22
by not later than December 1 of the current fiscal year, a school 23
district must submit, in a form and manner determined by the 24
department, to their intermediate district, and a public school 25
academy must submit, in a form and manner determined by the 26
department, to the intermediate district in which the public school 27
academy is located, the number of nonpublic school students the 28
district expects to transport as required under section 1321 of the 29
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revised school code, MCL 380.1321. Intermediate districts shall 1
submit this information to the department by not later than 2
February 1. 3
(3) (4) The department shall compile the reports provided by 4
intermediate districts under subsection (3) (2) into 1 legislative 5
report. The department shall provide this report not later than 6
March 1 of each fiscal year for which funding is allocated under 7
this section to the house and senate subcommittees responsible for 8
school aid, the house and senate fiscal agencies, and the state 9
budget director. 10
(4) (5) Notwithstanding section 17b, the department shall make 11
payments under this section on a schedule determined by the 12
department. 13
Sec. 22m. (1) From the state school aid fund money 14
appropriated in section 11, there is allocated for 2025-2026 2026-15
2027 an amount not to exceed $3,500,000.00 for supporting the 16
integration of local data systems into the Michigan data hub 17
network based on common standards and applications that are in 18
compliance with section 19(6). In addition, from the state school 19
aid fund money appropriated in section 11, there is allocated for 20
2025-2026 only an amount not to exceed $1,500,000.00 for the 21
purposes of this section. 22
(2) An entity that is the fiscal agent for no more than 5 23
consortia of intermediate districts that previously received 24
funding from the technology readiness infrastructure grant under 25
former section 22i for the purpose of establishing regional data 26
hubs that are part of the Michigan data hub network is eligible for 27
funding under this section. 28
(3) The center shall work with an advisory committee composed 29
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of representatives from intermediate districts within each of the 1
data hub regions to coordinate the activities of the Michigan data 2
hub network. 3
(4) The center, in collaboration with the Michigan data hub 4
network, shall determine the amount of funds distributed under this 5
section to each participating regional data hub within the network, 6
based upon a competitive grant process. The center shall ensure 7
that the entities receiving funding under this section represent 8
geographically diverse areas in this state. 9
(5) Notwithstanding section 17b, the department shall make 10
payments under this section on a schedule determined by the center. 11
(6) To receive funding under this section, a regional data hub 12
must have a governance model that ensures local control of data, 13
data security, and student privacy issues. The integration of data 14
within each of the regional data hubs must provide for the 15
actionable use of data by districts and intermediate districts 16
through common reports and dashboards and for efficiently providing 17
information to meet state and federal reporting purposes. 18
(7) Participation in a data hub region in the Michigan data 19
hub network under this section is voluntary and is not required. 20
(8) Entities receiving funding under this section shall use 21
the funds for all of the following: 22
(a) Creating an infrastructure that effectively manages the 23
movement of data between data systems used by intermediate 24
districts, districts, and other educational organizations in 25
Michigan based on common data standards to improve student 26
achievement. 27
(b) Utilizing the infrastructure to put in place commonly 28
needed integrations, reducing cost and effort to do that work while 29
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increasing data accuracy and usability. 1
(c) Promoting the use of a more common set of applications by 2
promoting systems that integrate with the Michigan data hub 3
network. 4
(d) Promoting 100% district adoption of the Michigan data hub 5
network. 6
(e) Ensuring local control of data, data security, and student 7
data privacy. 8
(f) Utilizing the infrastructure to promote the actionable use 9
of data through common reports and dashboards that are consistent 10
statewide. 11
(g) Creating a governance model to facilitate sustainable 12
operations of the infrastructure in the future, including 13
administration, legal agreements, documentation, staffing, hosting, 14
and funding. 15
(h) Evaluating future data initiatives at all levels to 16
determine whether the initiatives can be enhanced by using the 17
standardized environment in the Michigan data hub network. 18
(9) By not later than January 1 of each fiscal year, the 19
center shall prepare a summary report of information provided by 20
each entity that received funds under this section that includes 21
measurable outcomes based on the objectives described under this 22
section and a summary of compiled data from each entity to provide 23
a means to evaluate the effectiveness of the project. The center 24
shall submit the report to the house and senate appropriations 25
subcommittees on school aid and to the house and senate fiscal 26
agencies. 27
Sec. 23h. (1) From the state school aid fund money 28
appropriated in section 11, there is allocated an amount not to 29
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exceed $12,000,000.00 for 2026-2027 only to an intermediate 1
district in which the combined total number of pupils in membership 2
of all of its constituent districts is the fewest among all 3
intermediate districts in this state for the purpose of this 4
section. Funding must be used by the intermediate district, in 5
partnership with an association that represents intermediate 6
district administrators in this state, for the purposes described 7
in this section. 8
(2) From the state school aid fund money allocated in 9
subsection (1), there is allocated an amount not to exceed 10
$3,000,000.00 for professional learning opportunities for 11
mathematics educators, including instructional and leadership 12
coaching, designed to strengthen early mathematics content 13
knowledge and instructional practices among pre-K to 5 teachers. 14
Funds allocated under this subsection must be used for the 15
following: 16
(a) Development of local district professional learning 17
systems that incorporate job-embedded educator learning structures, 18
resources to support local district leadership teams, and the 19
intentional integration of the Michigan integrated continuous 20
improvement process, and the MiStrategy Bank. 21
(b) Professional learning for early mathematics specialists, 22
coaches, administrators, and teachers. 23
(c) Implementation of statewide and regional professional 24
learning networks in early mathematics instruction. 25
(d) Development and support of tools to support the 26
implementation at the intermediate district and district levels. 27
(3) From the state school aid fund money allocated in 28
subsection (1), there is allocated an amount not to exceed 29
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$9,000,000.00 to fund early mathematics specialists within 1
intermediate districts to assist teachers, school leaders, and 2
intermediate district leaders in implementing research-based 3
instructional strategies for grade pre-K to 5 students. All of the 4
following apply to funds allocated under this subsection: 5
(a) To be eligible to receive funds under this subsection, an 6
intermediate district must apply to the intermediate district 7
described in subsection (1) in a form and manner determined by the 8
intermediate district. The application for funds under this 9
subdivision must provide assurances that the early mathematics 10
specialists funded under this subsection demonstrate the following: 11
(i) A deep and broad understanding of mathematics content, 12
including the specialized knowledge needed for teaching. 13
(ii) Expertise in effective instructional and assessment 14
practices informed by research-based mathematical learning 15
trajectories. 16
(iii) Knowledge and skills for working with adult learners. 17
(iv) Leadership skills necessary to influence and support 18
educational efforts to improve mathematics teaching and learning. 19
(b) Funds allocated under this subsection must be awarded as 20
follows: 21
(i) An equal amount per eligible intermediate district 22
necessary to support the cost of 1 early mathematics specialist, as 23
determined by the intermediate district and association described 24
in subsection (1). 25
(ii) After initial distributions under subparagraph (i), any 26
remaining funds may be allocated by the intermediate district 27
described in subsection (1) to eligible intermediate districts for 28
early mathematics specialists based on regional need, using a 29
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rubric developed by the department and the Michigan Association of 1
Intermediate School Administrators Early Mathematics Task Force. 2
(4) By not later than September 1 of each year, the 3
intermediate district and the association described in subsection 4
(1), in consultation with grant recipients, shall submit a report 5
to the chairs of the senate and house appropriations subcommittees 6
on school aid, the chairs of the senate and house standing 7
committees responsible for education legislation, the house and 8
senate fiscal agencies, and the state budget director. The report 9
must include, at a minimum, an assessment of the impact of funds 10
allocated in this section on mathematics instruction and learning 11
at the intermediate district, district, and student level. 12
(5) Notwithstanding section 17b, the department shall make 13
payments under this section on a schedule determined by the 14
department. 15
(6) Notwithstanding section 18a, funds allocated under this 16
section may be available for expenditure until September 30, 2029. 17
A recipient of funding under this section must return any 18
unexpended funds to the department in the manner prescribed by the 19
department by not later than October 30, 2030. 20
Sec. 24. (1) From the state school aid fund money appropriated 21
in section 11, there is allocated for 2025-2026 2026-2027 an amount 22
not to exceed $7,650,000.00 for payments to the educating district 23
or intermediate district for educating pupils assigned by a court 24
or the department of health and human services to reside in or to 25
attend a juvenile detention facility or child caring institution 26
licensed by the department of health and human services and 27
approved by the department to provide an on-grounds education 28
program. The amount of the payment under this section to a district 29
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or intermediate district is calculated as prescribed under 1
subsection (2). 2
(2) The department shall allocate the total amount allocated 3
under this section by paying to the educating district or 4
intermediate district an amount equal to the lesser of the 5
district's or intermediate district's added cost or the 6
department's approved per-pupil allocation for the district or 7
intermediate district. For the purposes of this subsection: 8
(a) "Added cost" means 100% of the added cost each fiscal year 9
for educating all pupils assigned by a court or the department of 10
health and human services to reside in or to attend a juvenile 11
detention facility or child caring institution licensed by the 12
department of health and human services or the department of 13
licensing and regulatory affairs and approved by the department to 14
provide an on-grounds education program. Added cost is computed by 15
deducting all other revenue received under this article for pupils 16
described in this section from total costs, as approved by the 17
department, in whole or in part, for educating those pupils in the 18
on-grounds education program or in a program approved by the 19
department that is located on property adjacent to a juvenile 20
detention facility or child caring institution. Costs reimbursed by 21
federal funds are not included. 22
(b) "Department's approved per-pupil allocation" for a 23
district or intermediate district is determined by dividing the 24
total amount allocated under this section for a fiscal year by the 25
full-time equated membership total for all pupils approved by the 26
department to be funded under this section for that fiscal year for 27
the district or intermediate district. 28
(3) A district or intermediate district educating pupils 29
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described in this section at a residential child caring institution 1
may operate, and receive funding under this section for, a 2
department-approved on-grounds educational program for those pupils 3
that is longer than 181 days, but not longer than 233 days, if the 4
child caring institution was licensed as a child caring institution 5
and offered in 1991-92 an on-grounds educational program that was 6
longer than 181 days but not longer than 233 days and that was 7
operated by a district or intermediate district. 8
(4) Special education pupils funded under section 53a are not 9
funded under this section. 10
Sec. 24a. From the state school aid fund money appropriated in 11
section 11, there is allocated an amount not to exceed 12
$1,355,700.00 for 2025-2026 2026-2027 for payments to intermediate 13
districts for pupils who are placed in juvenile justice service 14
facilities operated by the department of health and human services. 15
The amount of the payment to each intermediate district is an 16
amount equal to the state share of those costs that are clearly and 17
directly attributable to the educational programs for pupils placed 18
in facilities described in this section that are located within the 19
intermediate district's boundaries. The intermediate districts 20
receiving payments under this section shall cooperate with the 21
department of health and human services to ensure that all funding 22
allocated under this section is utilized by the intermediate 23
district and department of health and human services for 24
educational programs for pupils described in this section. Pupils 25
described in this section are not eligible to be funded under 26
section 24. However, a program responsibility or other fiscal 27
responsibility associated with these pupils must not be transferred 28
from the department of health and human services to a district or 29
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intermediate district unless the district or intermediate district 1
consents to the transfer. 2
Sec. 25f. (1) From the state school aid fund money 3
appropriated in section 11, there is allocated an amount not to 4
exceed $1,600,000.00 for 2025-2026 2026-2027 for payments to strict 5
discipline academies and qualified districts, as provided under 6
this section. 7
(2) To receive funding under this section, a strict discipline 8
academy or qualified district must first comply with section 25e 9
and use the pupil transfer process described in that section for 10
changes in enrollment as prescribed under that section and apply 11
annually for funding under section 24. 12
(3) The total amount allocated to a strict discipline academy 13
or qualified district under this section is equal to the strict 14
discipline academy's or qualified district's pupil membership in 15
the immediately preceding year multiplied by an amount calculated 16
by dividing the total allocation under this section by the total 17
pupil membership for eligible strict discipline academies and 18
qualified districts in the immediately preceding year. However, the 19
sum of the amounts received by a strict discipline academy or 20
qualified district under this section and under section 24 must not 21
exceed the product of the strict discipline academy's or qualified 22
district's per-pupil allocation calculated under section 20 23
multiplied by the strict discipline academy's or qualified 24
district's full-time equated membership. The department shall 25
allocate funds to strict discipline academies and qualified 26
districts under this section on a monthly basis. 27
(4) Special education pupils funded under section 53a are not 28
funded under this section. 29
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(5) The department shall make payments to strict discipline 1
academies and qualified districts under this section according to 2
the payment schedule under section 17b. 3
(6) For purposes of this section, the pupil membership for the 4
current fiscal year for a qualified district is the actual number 5
of pupils that are in the custody of a county juvenile agency as 6
described in subsection (7)(a). 7
(7) As used in this section: 8
(a) "Qualified district" means a public school academy that is 9
not a strict discipline academy that enrolls individuals who are in 10
the custody of a county juvenile agency to which both of the 11
following are applicable: 12
(i) The agency had custody of individuals who were enrolled in 13
a strict discipline academy in the 2020-2021 school year. 14
(ii) The strict discipline academy that the individuals 15
described in subparagraph (i) were enrolled in subsequently closed. 16
(b) "Strict discipline academy" means a public school academy 17
established under sections 1311b to 1311m of the revised school 18
code, MCL 380.1311b to 380.1311m. 19
Sec. 26a. From the state school aid fund money appropriated in 20
section 11, there is allocated an amount not to exceed 21
$14,000,000.00 for 2025-2026 to reimburse districts and 22
intermediate districts under section 12 of the Michigan renaissance 23
zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2024. 24
2025. From the state school aid fund money appropriated in section 25
11, there is allocated an amount not to exceed $14,000,000.00 for 26
2026-2027 to reimburse districts and intermediate districts under 27
section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 28
125.2692, for taxes levied in 2026. The department shall pay the 29
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allocations by not later than 60 days after the department of 1
treasury certifies to the department and to the state budget 2
director that the department of treasury has received all necessary 3
information to properly determine the amounts due to each eligible 4
recipient. 5
Sec. 26b. (1) From the state school aid fund money 6
appropriated in section 11, there is allocated an amount not to 7
exceed $5,549,000.00 for 2025-2026 2026-2027 for payments to 8
districts, intermediate districts, and community college districts 9
for the portion of the payment in lieu of taxes obligation that is 10
attributable to districts, intermediate districts, and community 11
college districts under section 2154 of the natural resources and 12
environmental protection act, 1994 PA 451, MCL 324.2154. 13
(2) If the amount appropriated under this section is 14
insufficient to fully pay obligations under this section, payments 15
are prorated on an equal basis among all eligible districts, 16
intermediate districts, and community college districts. 17
Sec. 26c. (1) From the state school aid fund money 18
appropriated under section 11, there is allocated an amount not to 19
exceed $37,700,000.00 for 2024-2025 and there is allocated an 20
amount not to exceed $43,300,000.00 for 2025-2026 there is 21
allocated an amount not to exceed $48,300,000.00 for 2026-2027 to 22
the promise zone fund created in subsection (3). The funds 23
allocated under this section reflect the amount of revenue from the 24
collection of the state education tax captured under section 17 of 25
the Michigan promise zone authority act, 2008 PA 549, MCL 390.1677. 26
(2) Funds allocated to the promise zone fund under this 27
section must be used solely for payments to eligible districts and 28
intermediate districts, in accordance with section 17 of the 29
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Michigan promise zone authority act, 2008 PA 549, MCL 390.1677, 1
that have a promise zone development plan approved by the 2
department of treasury under section 7 of the Michigan promise zone 3
authority act, 2008 PA 549, MCL 390.1667. Eligible districts and 4
intermediate districts shall use payments made under this section 5
for reimbursement for qualified educational expenses as that term 6
is defined in section 3 of the Michigan promise zone authority act, 7
2008 PA 549, MCL 390.1663. 8
(3) The promise zone fund is created as a separate account 9
within the state school aid fund to be used solely for the purposes 10
of the Michigan promise zone authority act, 2008 PA 549, MCL 11
390.1661 to 390.1679. All of the following apply to the promise 12
zone fund: 13
(a) The state treasurer shall direct the investment of the 14
promise zone fund. The state treasurer shall credit to the promise 15
zone fund interest and earnings from fund investments. 16
(b) Money in the promise zone fund at the close of a fiscal 17
year remains in the promise zone fund and does not lapse to the 18
general fund. 19
(4) Subject to subsection (2), the state treasurer may make 20
payments from the promise zone fund to eligible districts and 21
intermediate districts under the Michigan promise zone authority 22
act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used for the 23
purposes of a promise zone authority created under that act. 24
(5) Notwithstanding section 17b, the department shall make 25
payments under this section on a schedule determined by the 26
department. 27
Sec. 26d. (1) From the state school aid fund money 28
appropriated under section 11, there is allocated an amount not to 29
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exceed $14,400,000.00 $19,000,000.00 for 2025-2026 and an amount 1
not to exceed $21,800,000.00 for reimbursements to intermediate 2
districts as required under section 15b of the brownfield 3
redevelopment financing act, 1996 PA 381, MCL 125.2665b. 4
(2) The amounts reimbursed under subsection (1) must be used 5
by the intermediate district only for the purposes for which the 6
property taxes were originally levied. 7
(3) The Michigan strategic fund and the Michigan economic 8
development corporation shall work with the department of treasury 9
in identifying the amount of tax revenues that are to be reimbursed 10
under subsection (1). 11
(4) Notwithstanding section 17b, the department of treasury 12
shall make payments under this section on a schedule determined by 13
the department of treasury. 14
Sec. 27a. (1) From the educator fellowship public provider 15
fund money appropriated in section 11, there is allocated for 2025-16
2026 2026-2027 an amount not to exceed $10,000,000.00, from the 17
state school aid fund money appropriated in section 11, there is 18
allocated for 2025-2026 2026-2027 an amount not to exceed 19
$10,000,000.00, and from the general fund money appropriated in 20
section 11, there is allocated for 2025-2026 2026-2027 only an 21
amount not to exceed $5,000,000.00 for the MI future educator 22
fellowship program. The funds allocated under this section must be 23
used to offset tuition costs for individuals who are working toward 24
earning their initial teacher certification. At the close of the 25
fiscal year, money allocated under this section that is unspent 26
must be deposited as follows: 27
(a) For state school aid fund money, into the educator 28
fellowship public provider fund in section 27d. 29
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(b) For general fund money, into the educator fellowship 1
private provider fund in section 27e. 2
(2) To establish initial eligibility for an award from funding 3
under this section, an individual must meet all of the following 4
conditions by the date of enrollment described in subdivision 5
(b):(a): 6
(a) Have graduated from high school with a diploma or 7
certificate of completion or achieved a high school equivalency 8
certificate. 9
(a) (b) Be admitted to an eligible educator preparation 10
program; be working toward a teacher certification; be enrolled in 11
enough coursework to be considered enrolled full-time during the 12
academic year, as determined by the student's educator preparation 13
program, or the equivalent of full-time participation for 14
individuals enrolled in an alternative certification program, as 15
defined by the department; and, for students at institutions of 16
higher education, be considered at least a junior-level student, as 17
determined by the institution of higher education. 18
(b) (c) Not have previously earned a teacher certification. 19
(c) (d) Timely complete a grant application in a form and 20
manner prescribed by the department of lifelong education, 21
advancement, and potential. 22
(d) (e) Timely file the Free Application for Federal Student 23
Aid for the enrollment period described in subdivision (b).(a). 24
(e) (f) Timely apply for all available gift aid for the 25
enrollment period described in subdivision (b).(a). 26
(f) (g) Agree to repay any funds received from funding under 27
this section if the individual does not maintain enrollment in 28
their educator preparation program, the individual does not 29
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successfully complete their educator program, or the individual 1
does not complete the work requirement described in subsection (7). 2
(g) (h) Have a high school or college grade point average of 3
at least 3.0. 4
(h) (i) Be a resident of this state, as determined for 5
purposes of the Free Application for Federal Student Aid. 6
(3) To establish continuing eligibility for an award under 7
this section at an eligible educator preparation program, an 8
individual must meet all of the following conditions: 9
(a) Maintain full-time continuous enrollment in an eligible 10
educator preparation program, as determined by the educator 11
preparation program, or the equivalent of full-time participation 12
for individuals enrolled in an alternative certification program, 13
as defined by the department, excluding any period of time missed 14
due to a medical or other emergency, as determined by the 15
department of lifelong education, advancement, and potential. 16
(b) Maintain satisfactory academic progress, including a grade 17
point average of at least 3.0, in courses provided by the eligible 18
educator preparation program and meet requirements established by 19
the eligible educator preparation program. 20
(c) Participate in relevant academic and career advising 21
programs offered by the eligible educator preparation program. 22
(d) Timely file the Free Application for Federal Student Aid 23
for each academic year in which the individual receives an award 24
from funding under this section. 25
(e) Timely apply for all available gift aid for each academic 26
year in which the individual applies for funding under this 27
section. 28
(f) Maintain residency in this state, as determined for 29
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purposes of the Free Application for Federal Student Aid. 1
(4) An award under this section must not exceed $10,000.00 per 2
academic year or the cost of tuition at the eligible educator 3
preparation program attended, whichever is less. As used in this 4
subsection, the cost of tuition at an educator preparation program 5
that is an institution of higher education is the in-district 6
resident rate plus other required fees, as determined by the 7
department of lifelong education, advancement, and potential; and 8
the cost of tuition at an educator preparation program that is an 9
alternative certification provider is the cost of tuition plus 10
other required fees, as determined by the department of lifelong 11
education, advancement, and potential. 12
(5) Awards under this section must be distributed to eligible 13
educator preparation programs on behalf of an eligible recipient on 14
a timeline determined by the department of lifelong education, 15
advancement, and potential. 16
(6) Pending available funds, applicants may renew their award 17
for up to 3 years, or until program completion, whichever comes 18
first. 19
(7) To be an eligible recipient of fellowship funding under 20
this section, an individual must pledge to work as a certified 21
teacher in a public school or a qualifying public preschool program 22
in this state and must meet 1 of the following work requirements: 23
(a) For a recipient of funding under this section who received 24
an award for 1 academic year, 3 years of work as a certified 25
teacher in a public school or a qualifying public preschool program 26
in this state. 27
(b) For a recipient of funding under this section who received 28
an award for 2 academic years, 4 years of work as a certified 29
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teacher in a public school or a qualifying public preschool program 1
in this state. 2
(c) For a recipient of funding under this section who received 3
an award for 3 academic years, 5 years of work as a certified 4
teacher in a public school or a qualifying public preschool program 5
in this state. 6
(d) For a recipient working in a critical needs district, 3 7
years of work as a certified teacher. As used in this subdivision, 8
"critical needs district" means a district with a median household 9
income in the lowest quartile in each prosperity region, as 10
determined by the department. 11
(8) If an award recipient does not maintain enrollment in 12
their educator preparation program as required under subsection 13
(3)(a), does not successfully complete their educator preparation 14
program, or does not meet the work requirement described in 15
subsection (7), any amount received from funds under this section 16
converts to a 0% interest loan that must be repaid to this state 17
within 10 years, plus any deferment period as determined and 18
approved by the department of lifelong education, advancement, and 19
potential. The amount of repayment must be reduced proportionate to 20
the number of years worked in schools or qualifying public 21
preschool programs in this state as a certificated teacher out of 5 22
years. The department of lifelong education, advancement, and 23
potential shall develop guidance to enforce this subsection. 24
(9) An individual may not concurrently receive funding through 25
programs funded under this section and grow your own programs 26
funded under section 27b. 27
(10) If the amount allocated in subsection (1) is insufficient 28
to fully fund awards under this section, there is appropriated from 29
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the educator fellowship public provider fund in section 27d or the 1
educator fellowship private provider fund in section 27e, as 2
applicable, the amount necessary to fully fund these programs. The 3
state budget director shall provide notification to the house and 4
senate appropriations subcommittees on K to 12 school aid and the 5
house and senate fiscal agencies for any additional appropriation 6
described under this subsection. 7
(11) Notwithstanding section 17b, the department of lifelong 8
education, advancement, and potential shall make payments under 9
this section on a schedule determined by the department of lifelong 10
education, advancement, and potential. 11
(12) The department of lifelong education, advancement, and 12
potential shall report to the chairpersons of the house 13
appropriations subcommittee on school aid and education and the 14
senate appropriations subcommittee on pre-K to 12 by February 15 of 15
the current fiscal year. The report must include the following: 16
(a) The number and amount of awards granted in the previous 17
fiscal year. 18
(b) The number of recipients in the previous fiscal year that 19
had their awards converted to loans under subsection (8). 20
(13) As used in this section, "eligible educator preparation 21
program" means a public or nonpublic institution of higher 22
education or an alternative route provider that meets all of the 23
following, as applicable: 24
(a) Is approved by the department to offer teacher preparation 25
programming. 26
(b) Enrolls 1 or more future educator fellowship recipients. 27
(c) Has not been deemed as ineligible to receive Michigan 28
achievement scholarship funding under section 248 as a result of 29
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exceeding tuition restraint requirements described in section 248. 1
(d) Includes, as part of its required educator preparation 2
coursework, pedagogical methods grounded in the science of reading. 3
If an educator preparation program does not include pedagogical 4
methods grounded in the science of reading, the program may 5
maintain eligibility by providing to the department of lifelong 6
education, advancement, and potential a detailed public plan, in a 7
form and manner determined by the department of lifelong education, 8
advancement, and potential, to comply with section 1531e of the 9
revised school code, MCL 380.1531e, by not later than September 30, 10
2027. 11
Sec. 27b. (1) From the state school aid fund money 12
appropriated in section 11, there is allocated for 2025-2026 only 13
an amount not to exceed $70,000,000.00 to districts, intermediate 14
districts, and consortia of intermediate districts for grow your 15
own programs and educator development programs as described in this 16
section and subject to subsection (5), and there is allocated for 17
2026-2027 only an amount not to exceed $25,000,000.00 to districts, 18
intermediate districts, and consortia of intermediate districts for 19
grow your own programs, educator workforce innovation programs, and 20
educator development and retention programs as described in this 21
section. 22
(2) The department shall establish a competitive grant process 23
to distribute funds under this section. A district, intermediate 24
district, or consortium of intermediate districts must apply for 25
funds in a form and manner prescribed by the department. As part of 26
the application described in this subsection, a district, 27
intermediate district, or consortium of intermediate districts must 28
submit the following information and assurances: 29
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(a) Demonstrated need for funding in the district, 1
intermediate district, or consortium of intermediate districts or 2
the broader community, including projected workforce needs, and a 3
proposed spending plan on how the funds will be utilized that 4
includes, but is not limited to, administrative costs, expected 5
tuition, fees, and books for the program. 6
(b) Number of support staff projected to participate in a 7
program described in this section. 8
(c) The planned activities for programs described in this 9
section. 10
(d) Projected outcomes of programs described in this section, 11
which must include, but are not limited to, the following: 12
(i) Teacher and school leader retention and satisfaction. 13
(ii) Teacher and school leader efficacy. 14
(iii) Anticipated school or district partners, evidenced by 15
signed partnership agreements. 16
(iv) Beginning in 2026-2027, demonstration of addressing 17
projected workforce needs. 18
(e) Assurances that the programs described in this section 19
will be no cost for participants and that participants will be 20
compensated as an employee for the duration of their training, 21
including a paid residency, fellowship, or student teaching. 22
(f) Beginning in 2026-2027, assurances that any educator 23
preparation program partnering with the district, intermediate 24
district, or consortium of intermediate districts to support a grow 25
your own program under this section is approved by the department 26
for the preparation of teachers in this state. 27
(3) Recipients of grants under this section must submit 28
performance reports to the department not less than twice per year. 29
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Each report must include the following information: 1
(a) (i) The number of program participants served and retention 2
in the program or district. 3
(b) (ii) Qualitative and quantitative participant feedback. 4
(c) (iii) Evidence of efficacy and progress toward projected 5
outcomes. 6
(4) The department shall ensure that all performance reports 7
required under subsection (3) are made publicly available on the 8
department's website. 9
(5) Grant awards under this section must be structured into 3 10
tiers, as described in subsections (6), (8), (9), and (11). (12), 11
or be used for the purposes described in subsection (17). All 12
programs funded under this section must address a measurable and 13
critical problem related to the health and efficacy of this state's 14
education talent working in Michigan schools and be data- and 15
research-driven, demonstrating effectiveness against intended and 16
measurable outcomes. 17
(6) Funding For 2025-2026 only, funding for tier 1 grant 18
awards must not exceed $50,000,000.00, unless otherwise directed by 19
the legislature. The In 2025-2026, the department shall allocate at 20
least 1 tier 1 grant of not less than $40,000,000.00. Tier Subject 21
to subsection (7), tier 1 grants must sustain or further scale grow 22
your own programs or educator development programs that meet all of 23
the following criteria: 24
(a) Have For 2025-2026 only, have been in operation in this 25
state for at least 5 years, and evaluated for at least 2 years by a 26
rigorous, independent Michigan-based evaluator, and results of the 27
program have been made publicly available. 28
(b) Have For 2025-2026 only, have at least 2 consecutive years 29
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of public financial audits of the program with no material 1
findings. 2
(c) Demonstrate For 2025-2026 only, demonstrate broad 3
geographic reach and investment into teachers and school leaders at 4
every experience level, in partnerships established with not fewer 5
than 15 local education agencies across both urban and rural 6
regions, that extend back to the start of the 2023-2024 school 7
year, bound by written agreements that include data sharing with an 8
independent evaluator for evaluation purposes. 9
(d) Generate For 2025-2026 only, generate private matching 10
funds. 11
(e) For 2026-2027, have been in operation at least 3 years. 12
(f) For 2026-2027, demonstrate a proven track record of 13
success, as evidenced by internal data showing both of the 14
following: 15
(i) High rates of educator retention within the profession or 16
participating districts after program completion. 17
(ii) Active and ongoing engagement and partnership with school 18
districts in each of the state's intermediate districts. 19
(g) For 2026-2027, operate as a statewide program, 20
demonstrating the ability to serve a geographically diverse 21
population, including both urban and rural areas. 22
(h) For 2026-2027, have a demonstrated track record of 23
receiving private philanthropic or corporate funding. 24
(7) For 2025-2026 only, tier 1 grants under subsection (6) may 25
be used to support operating costs associated with teacher 26
recruitment, retention, development, innovation, and evaluation 27
costs. 28
(8) (7) Notwithstanding section 18a, funds allocated in 2025-29
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2026 for programs described in subsection (6) may be available for 1
expenditure until September 30, 2029. A recipient of funding for a 2
program described in subsection (6) must return any unexpended 3
funds to the department in a manner prescribed by the department by 4
not later than October 30, 2029. 5
(9) (8) Tier 2 grants must scale or sustain grow your own 6
programs or educator development programs that meet all of the 7
following criteria: 8
(a) Have For 2025-2026 only, have been in operation for at 9
least 3 years. 10
(b) Demonstrate For 2025-2026 only, demonstrate promising 11
internal results, but are not yet supported by an independent 12
evaluation. 13
(c) Serve For 2025-2026 only, serve a geographically diverse 14
population, including both urban and rural areas. 15
(d) Have a demonstrated track record of receiving private 16
philanthropic or corporate funding. 17
(e) For 2026-2027, have been in operation for at least 4 18
years. 19
(f) For 2026-2027, serve both K to 12 and the early childhood 20
educator pipelines in a geographically diverse population, 21
including both urban and rural areas. 22
(g) For 2026-2027, demonstrate promising internal results and 23
have contracted with a third-party vendor. 24
(h) For 2026-2027, have a demonstrated track record of 25
launching grow your own programs with more than 100 participants in 26
geographically diverse areas of the state. 27
(i) For 2026-2027, have partnered with at least 6 school 28
districts to adopt innovative staffing models, including strategic 29
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staffing. 1
(j) For 2026-2027, have led at least 1 program that supports 2
updates and improvements to educator preparation programs. 3
(10) (9) Grant For 2025-2026 only, grant awards for programs 4
described in subsection (8) (9) must not exceed $12,500,000.00 per 5
year. 6
(11) (10) Notwithstanding section 18a, funds allocated in 7
2025-2026 for programs described in subsection (8) (9) may be 8
available for expenditure until September 30, 2027. A recipient of 9
funding in 2025-2026 for a program described in subsection (8) (9) 10
must return any unexpended funds to the department in a manner 11
prescribed by the department by not later than October 30, 2027. 12
(12) (11) Tier 3 grants must fund pilot-stage or early-stage 13
grow your own programs or educator development programs that meet 14
all of the following criteria: 15
(a) Have For 2025-2026 only, have been in operation for fewer 16
than 2 years. 17
(b) Do not yet have independent evaluation data available. 18
(c) Are limited in scope or geography. 19
(d) Include a documented path to scale or expand the program 20
to serve more educators or additional districts. 21
(13) (12) Grant For 2025-2026 only, grant awards for programs 22
described in subsection (11) (12) must not exceed $5,000,000.00 per 23
year. 24
(14) (13) Notwithstanding section 18a, funds allocated in 25
2025-2026 for programs described in subsection (11) (12) may be 26
available for expenditure until September 30, 2027. A recipient of 27
funding for a program described in subsection (11) (12) must return 28
any unexpended funds to the department in a manner prescribed by 29
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the department by not later than October 30, 2027. 1
(15) Notwithstanding section 18a, funds allocated in 2026-2027 2
for programs described in this section may be available for 3
expenditure for up to 3 fiscal years after the fiscal year in which 4
funds were made available to the program. A recipient of funding 5
for a program under this section must return any unexpended funds 6
to the department in a manner and time frame prescribed by the 7
department. 8
(16) (14) An individual may not concurrently receive funding 9
for programs under this section and programs funded under sections 10
27a and 27c. 11
(17) From the state school aid fund money allocated in 12
subsection (1) for 2026-2027, an amount not to exceed $3,000,000.00 13
may be awarded by the department for school librarian specialist 14
certification grants. These grants may be awarded to eligible grow 15
your own programs, educator development programs, or other programs 16
that provide a pathway for certified teachers to receive a school 17
librarian specialist (NQ) endorsement from the department. In 18
awarding grants under this subsection, the department shall 19
prioritize awards for applicants serving in schools that have 20
libraries but do not have staff with an NQ endorsement. 21
(18) (15) Notwithstanding section 17b, the department shall 22
make payments under this section by not later than December 15, 23
2025.2026. 24
(19) The funds allocated under this section for 2026-2027 are 25
a work project appropriation, and any unexpended funds for 2026-26
2027 are carried forward into 2027-2028. The purpose of the work 27
project is to continue funding supports for grow your own educator 28
programs. The estimated completion date of the work project is 29
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September 30, 2031. 1
Sec. 27c. (1) From the state school aid fund money 2
appropriated in section 11, there is allocated $30,000,000.00 for 3
2025-2026 2026-2027 and from the educator fellowship public 4
provider fund money appropriated in section 11, there is allocated 5
$20,000,000.00 for 2025-2026 2026-2027 for the MI future educator 6
student teacher stipend program. Except as otherwise provided in 7
this section, the funds allocated under this section must be paid 8
to eligible educator preparation programs for payments to eligible 9
student teachers working in a district. At the close of the fiscal 10
year, state school aid fund money allocated under this section that 11
is unspent must be deposited into the educator fellowship public 12
provider fund in section 27d. 13
(2) An eligible student teacher under this subsection must 14
meet all of the following: 15
(a) The individual must be admitted to an eligible educator 16
preparation program, be working toward a teacher certification, and 17
be participating in required student teaching coursework. As used 18
in this subdivision, "required student teaching coursework" means 19
credit hours, or the program equivalent, required by an eligible 20
educator preparation program for successful completion of the 21
program. This coursework must include regular placement in a 22
district where the student gains real-world, first-hand experience 23
working in a classroom, teaching students, engaging in the day-to-24
day activities of a certified teacher, and working daily under the 25
guidance of a certified teacher. 26
(b) The individual must timely complete an application in a 27
form and manner prescribed by the department of lifelong education, 28
advancement, and potential. The application must include the 29
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district in which the individual is working as a student teacher 1
and must include a certification by the district and the 2
individual's eligible educator preparation program that the student 3
is working as a student teacher. If the individual's eligible 4
educator preparation program is not provided by a public 5
institution of higher education, the district in which the 6
individual is working must also provide an assurance that they will 7
forward any amount received under this section from the department 8
of lifelong education, advancement, and potential for purposes of 9
the program described in this section to the individual's eligible 10
educator preparation program. 11
(c) The individual must not have received a payment from funds 12
under this subsection previously, unless the individual is enrolled 13
in an eligible educator preparation program that requires multiple 14
semesters of student teaching. An individual may receive not more 15
than 2 awards under this section. 16
(d) If an individual is employed by their district as a 17
teacher of record, they are not eligible for payment under this 18
section. 19
(e) An individual that is a current City Year corps member 20
enrolled in an eligible educator preparation program is eligible 21
for payment under this section. 22
(3) The department of lifelong education, advancement, and 23
potential shall pay each eligible educator preparation program an 24
amount not to exceed $9,600.00 per academic semester for each 25
eligible student teacher working in a district. If the individual's 26
eligible educator preparation program is not provided by a public 27
institution of higher education, the department of lifelong 28
education, advancement, and potential shall pay an amount not to 29
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exceed $9,600.00 per academic semester to the district in which the 1
individual is working as a student teacher, and that district must 2
forward the amount received to the individual's eligible educator 3
preparation program. It is intended that payments under this 4
subsection are made at the beginning of the semester in 1 lump sum 5
for eligible student teachers. 6
(4) Eligible educator preparation programs shall pay funds 7
received under this section, in entirety, to the eligible student 8
teacher. 9
(5) Notwithstanding section 17b, the department of lifelong 10
education, advancement, and potential shall make payments under 11
this section on a schedule determined by the department of lifelong 12
education, advancement, and potential. 13
(6) If the amount allocated in subsection (1) is insufficient 14
to fully fund awards under this section, there is appropriated from 15
the educator fellowship public provider fund in section 27d the 16
amount necessary to fully fund the programs described in this 17
section. The state budget director shall notify the house and 18
senate appropriations subcommittees on K to 12 school aid and the 19
house and senate fiscal agencies of any additional appropriation 20
described in this subsection. 21
(7) As used in this section, "eligible educator preparation 22
program" means an institution of higher education that meets all of 23
the following: 24
(a) Is a public or private institution of higher education in 25
this state. 26
(b) Has an established school of education with an educator 27
preparation program approved by the department. 28
(c) Has not been deemed as ineligible to receive Michigan 29
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achievement scholarship funding under section 248 as a result of 1
exceeding tuition restraint requirements described in section 248. 2
(d) Includes, as part of its required educator preparation 3
coursework, pedagogical methods grounded in the science of reading. 4
If an educator preparation program does not meet this standard, the 5
program may maintain eligibility by providing to the department of 6
lifelong education, advancement, and potential a detailed public 7
plan, in a form and manner determined by the department of lifelong 8
education, advancement, and potential, to comply with section 1531e 9
of the revised school code, MCL 380.1531e, by not later than 10
September 30, 2027. 11
Sec. 27j. (1) The student loan repayment assistance reserve 12
fund is created as a separate account within the state school aid 13
fund. to provide supplemental funding for the student loan 14
repayment assistance program in section 27k. 15
(2) The state treasurer may receive money or other assets from 16
any source for deposit into the student loan repayment assistance 17
reserve fund. The state treasurer shall direct the investment of 18
the student loan repayment assistance reserve fund. The state 19
treasurer shall credit to the student loan repayment assistance 20
reserve fund interest and earnings from student loan repayment 21
assistance reserve fund investments. 22
(3) Money in the student loan repayment assistance reserve 23
fund at the close of the fiscal year remains in the student loan 24
repayment assistance reserve fund and does not lapse lapses to the 25
state school aid fund. 26
(4) The department of treasury is the administrator of the 27
student loan repayment assistance reserve fund for auditing 28
purposes. 29
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(5) Money available in the student loan repayment assistance 1
reserve fund must not be expended without a specific appropriation. 2
(6) At the close of each fiscal year, unspent funds from state 3
sources allocated in section 27k must be deposited into the student 4
loan repayment assistance reserve fund created in this section. 5
Sec. 27l. (1) From the state school aid fund money appropriated 6
in section 11, there is allocated $203,000,000.00 $150,000,000.00 7
for 2024-2025 only, and from the MPSERS obligation reform reserve 8
fund money appropriated under section 11, there is allocated the 9
remaining balance, estimated at $147,300,000.00 for 2024-2025 2026-10
2027 only to districts and intermediate districts for the purposes 11
of this section. The state school aid fund allocation in this 12
section is conditional on the effective issuance of a directive by 13
the state budget director, pursuant to section 451a of the 14
management and budget act, 1984 PA 431, MCL 18.451a, to lapse all 15
remaining funding from a work project that was established under 16
section 27k in 2023-2024. The amount allocated from the state 17
school aid fund under this section may not exceed the amount lapsed 18
from the work project as described in the immediately preceding 19
sentence. 20
(2) The state school aid fund money allocated in subsection 21
(1) is allocated to districts and intermediate districts in an 22
equal amount per pupil. Subject to subsection (3), (2), a district 23
or intermediate district shall use all of the funding allocated 24
under this subsection to increase compensation for educators in the 25
district or intermediate district. 26
(2) (3) If there are 1 or multiple labor unions representing 27
educators in the district or intermediate district, the district or 28
intermediate district shall bargain any increases in compensation 29
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under subsection (2) (1) with those unions. All payments to 1
educators made by districts or intermediate districts with funds 2
allocated under subsection (2) (1) shall be in addition to any 3
existing compensation negotiated in a collective bargaining 4
agreement. 5
(4) The MPSERS obligation reform reserve fund money allocated 6
in subsection (1) is allocated for payments to participating 7
entities to offset normal costs associated with retiree health 8
benefits. The amount allocated to each participating entity under 9
this subsection must be based on the participating entity's 10
proportion of the total funding distributed in 2024-2025 under 11
section 147g. Participating entities must use funding distributed 12
under this subsection as an offset for normal costs associated with 13
retiree health benefits. 14
(3) (5) Notwithstanding section 17b, the department shall make 15
payments under this section on a schedule determined by the 16
department. 17
(6) The funds allocated under this section for 2024-2025 are a 18
work project appropriation, and any unexpended funds for 2024-2025 19
are carried forward into 2025-2026. The purpose of the work project 20
is to increase compensation for educators and offset normal costs 21
associated with retiree health care benefits. The estimated 22
completion date of the work project is September 30, 2026. 23
(4) The funds appropriated under this section for payments to 24
educators are intended as 1-time bonus payments. Pursuant to 25
section 3a(3) of the public school employees retirement act of 26
1979, 1980 PA 300, MCL 38.1303a, payments under this section are 27
not considered compensation for retirement purposes and are not 28
subject to member or employer contribution requirements under the 29
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Michigan public school employees' retirement system (MPSERS). 1
(5) (7) As used in this section, : 2
(a) "Educator" includes, but is not limited to, teachers, 3
librarians, speech therapists, language therapists, physical 4
therapists, occupational therapists, school counselors, school 5
social workers, school psychologists, school nurses, 6
paraprofessionals aids, food service workers, custodians, bus 7
drivers, and literacy coaches. Educator also includes any other 8
school employee covered under a collective bargaining agreement. 9
(b) "Participating entity" means a district, intermediate 10
district, district library, or community college that is a 11
reporting unit of the Michigan public school employees' retirement 12
system under the public school employees retirement act of 1979, 13
1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to 14
the Michigan public school employees' retirement system for the 15
applicable fiscal year. 16
Sec. 27m. (1) From the state school aid fund money 17
appropriated under section 11, there is allocated for 2023-2024 18
only, $4,000,000.00 Subject to the provisions in this subsection, 19
and in addition to the funds appropriated in section 11, from the 20
state school aid fund, there is appropriated and allocated an 21
amount not to exceed $2,900,000.00 to districts and intermediate 22
districts to fund financial awards to eligible Michigan teachers 23
who hold National Board Certification. The appropriation and 24
allocation under this subsection is contingent on the effective 25
issuance of a directive by the budget director, pursuant to section 26
451a of the management and budget act, 1984 PA 431, MCL 18.1451a, 27
to lapse the remaining funding from a work project that was 28
established under this section in 2023-2024. The amount allocated 29
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under this subsection may not exceed the amount lapsed from the 1
work project referenced in the immediately preceding sentence. 2
(2) A district or intermediate district must apply in a form 3
and manner determined by the department. Awards must be granted as 4
$4,000.00 to all eligible teachers who hold National Board 5
Certification, and an additional $6,000.00 for eligible teachers 6
who hold National Board Certification and serve in Title I schools. 7
(3) To be eligible to receive an award, eligible teachers must 8
meet the following, as applicable: 9
(a) Be employed in classroom teaching at least 50% of the 10
teacher's full-time hours, as determined by the district or 11
intermediate district. 12
(b) To receive an award under subsection (4), hold National 13
Board Certification by January 1, 2024. 14
(4) Subject to subsection (6), and notwithstanding section 15
17b, awards under subsection (2) must be paid to the districts and 16
intermediate districts by April 30, 2024. 17
(5) If the amount allocated under subsection (1) is 18
insufficient to fully make payments to all eligible participants as 19
required under subsection (1), the department shall prorate the 20
amount paid to districts and intermediate districts to distribute 21
to all eligible participants on an equal basis. 22
(3) (6) If funding remains after the awards under subsection 23
(4) are granted, the The department shall grant additional awards 24
under subsection (2) this section on a first-come, first-served 25
basis. An eligible teacher may receive more than 1 award under 26
subsection (2), but shall not receive more than 1 award in a single 27
fiscal year. 28
(7) In addition to the funds allocated in subsection (1), an 29
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amount not to exceed $1,000,000.00 for 2023-2024 only from the 1
state school aid fund money appropriated in section 11 must be used 2
for eligible teachers to cover National Board for Professional 3
Teaching Standards Certification fees for first-time candidates in 4
Title I schools. 5
(8) A district or intermediate district shall apply for 6
funding under subsection (7) in a form and manner determined by the 7
department. The department shall approve applications under 8
subsection (7) on a first-come, first-served basis. Notwithstanding 9
section 17b, awards under subsection (7) must be paid on a schedule 10
determined by the department. 11
(4) (9) The funds allocated under this section for 2023-2024 12
2026-2027 are a work project appropriation, and any unexpended 13
funds for 2023-2024 2026-2027 are carried forward into 2024-2025. 14
2027-2028. The purpose of the work project is to enable and 15
encourage teachers to get National Board Certification. The 16
estimated completion date of the work project is September 30, 17
2026.2031. 18
(5) The funds appropriated under this section are intended as 19
1-time bonus payments. Pursuant to section 3a(3) of the public 20
school employees retirement act of 1979, 1980 PA 300, MCL 38.1303a, 21
these payments are not considered compensation for retirement 22
purposes and are not subject to member or employer contribution 23
requirements under the Michigan public school employees' retirement 24
system (MPSERS). 25
(6) (10) As used in this section, "eligible teacher" includes 26
individuals who hold a valid or expired Michigan teaching 27
certificate and are employed by the district or intermediate 28
district as teachers, including those in teacher leadership roles 29
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as a peer assistance and review coach, mentor, or other teacher 1
support provider if the position does not require a school 2
administrator certificate. 3
Sec. 28. (1) To recognize differentiated instructional costs 4
for different types of pupils as well as additional costs to 5
provide essential services in 2025-2026, 2026-2027, the following 6
sections provide a weighted foundation allocation or an additional 7
payment of some type in the following amounts, as allocated under 8
those sections: 9
(a) Section 22b, weighted foundation payment, 10
$1,696,087,600.00. 11
(b) (a) Section 22d, isolated and rural districts, 12
$12,873,100.00.$13,772,300.00. 13
(c) (b) Section 22l, transportation reimbursement, 14
$125,000,000.00.$150,000,000.00. 15
(c) Section 29, declining enrollment, $71,000,000.00. 16
(d) Section 31a, at risk, $1,293,655,000.00. 17
(d) (e) Section 32d, great start readiness program, 18
$656,217,600.00.$794,667,600.00. 19
(f) Section 41, bilingual education for English language 20
learners, $62,732,600.00. 21
(e) (g) Section 51c, special education, mandated percentages, 22
$1,107,900,000.00.$1,140,700,000.00. 23
(f) (h) Section 54d, early on, $23,670,700.00.$25,120,700.00. 24
(g) (i) Section 61a, career and technical education, standard 25
reimbursement, $41,733,800.00.$44,233,800.00. 26
(j) Section 61d, career and technical education incentives, 27
$13,400,000.00. 28
(h) Section 61b, career and technical education, early middle 29
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college and career and technical education, $8,868,000.00. 1
(2) The funding described in subsection (1) is not a separate 2
allocation of any funding but is instead a listing of funding 3
allocated in the sections listed in subsection (1). 4
Sec. 30d. (1) From the state school aid fund money 5
appropriated in section 11, there is allocated an amount not to 6
exceed $200,000,000.00 for 2025-2026, 2026-2027, and from the 7
general fund money appropriated in section 11, there is allocated 8
an amount not to exceed $1,600,000.00 for 2025-2026 only 2026-2027 9
for the purpose of making payments to participating entities to 10
provide free school lunch and breakfast to public school and 11
nonpublic school pupils in grades pre-K to 12. 12
(2) To receive funding under this section, a participating 13
entity must participate in the National School Lunch Program and 14
School Breakfast Program and must do all of the following: 15
(a) Provide reimbursable breakfasts and reimbursable lunches 16
at no cost to all students for any school breakfast program or 17
school lunch program operated by the participating entity. 18
(b) Submit information regarding the number of reimbursable 19
breakfasts and reimbursable lunches served in a manner prescribed 20
by the department. 21
(c) Maximize federal reimbursement for reimbursable breakfasts 22
and reimbursable lunches by operating under the CEP if the 23
participating entity has an identified student percentage greater 24
than or equal to the minimum requirement to be eligible to 25
participate in the CEP. For purposes of this subdivision, all 26
eligible participating entities must elect CEP on behalf of a 27
single school, a group or groups of schools, or all schools in the 28
participating entity, as applicable, in a manner that maximizes 29
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federal reimbursement. 1
(d) Meet all applicable state and federal standards in its 2
school breakfast and lunch programs, as determined by the 3
department. 4
(e) Take all efforts to maximize and implement policies that 5
require parents or guardians to fill out relevant family income 6
information, in a manner prescribed by the department, for the 7
purposes of determining student eligibility for federal free or 8
reduced cost meal reimbursement rates and CEP eligibility 9
determinations. 10
(f) Forgive all school meal debt related to federally 11
reimbursable meals, as determined by the department. 12
(3) Participating entities are encouraged to offer meals that 13
meet students' dietary restrictions, including the provision of 14
gluten-free meals, vegetarian meals, vegan meals, and, upon 15
request, kosher meals, halal meals, and meals meeting any allergy 16
restrictions as confirmed by a doctor's note. Participating 17
entities are encouraged to purchase food from Michigan growers when 18
possible and practical. 19
(4) For each eligible participating entity, the department 20
shall pay an amount equal to the following: 21
(a) The amount equal to the federal rate per student paid per 22
pupil per free breakfast and lunch under the Child Nutrition Act 23
child nutrition act of 1966, 42 USC 21 1771 to 1793, and the 24
Richard B. Russell National School Lunch Act, national school lunch 25
act, 42 USC 1751 to 1769j, multiplied by the number of breakfasts 26
and lunches provided by the participating entity to students, less 27
the federal revenue received by the participating entity under the 28
school breakfast program and the school lunch program under the 29
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Child Nutrition Act child nutrition act of 1966, 42 USC 21 1771 to 1
1793, and the Richard B. Russell National School Lunch Act, 2
national school lunch act, 42 USC 1751 to 1769j, and other state 3
lunch payments received under section 31d. 4
(b) The amount equal to the federal rate per student paid per 5
pupil per free breakfast and lunch under the Child Nutrition Act 6
child nutrition act of 1966, 42 USC 21 1771 to 1793, and the 7
Richard B. Russell National School Lunch Act, national school lunch 8
act, 42 USC 1751 to 1769j, multiplied by the number of breakfasts 9
and lunches provided by the participating entity, as applicable, to 10
children participating in the Great Start Readiness Program under 11
section 32d at the participating entity, less all other federal and 12
state lunch payments made for those children. For purposes of this 13
subdivision, compliance with 7 CFR 226.9 is required. The 14
department shall assign rates of reimbursement pursuant to 7 CFR 15
226.9, at least annually, on the basis of family size and income 16
information reported by each eligible participating entity. 17
Assigned rates of reimbursement must be adjusted annually to 18
reflect changes in the national average payment rates. 19
(5) Notwithstanding section 17b, the department may make 20
payments under this section on a schedule determined by the 21
department. 22
(6) As used in this section: 23
(a) "CEP" means the Community Eligibility Provision under the 24
Richard B. Russell National School Lunch Act, national school lunch 25
act, 42 USC 1751 to 1769j. 26
(b) "Participating entity" means a district, intermediate 27
district, nonpublic school, or the Michigan Schools for the Deaf 28
and Blind. 29
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(7) In addition to the appropriations in section 11, if the 1
amount allocated in subsection (1) is insufficient to fully 2
reimburse districts for meals as required in this section, there is 3
appropriated from the school meals reserve fund created in section 4
30e the amount necessary to fully fund these reimbursements. 5
Sec. 31a. (1) There is allocated for 2025-2026 an amount not 6
to exceed $1,336,805,000.00 from the state school aid fund money 7
appropriated in section 11 and an amount not to exceed 8
$1,500,000.00 from the general fund money appropriated in section 9
11 for payments to eligible districts and eligible public school 10
academies for the purposes of ensuring that pupils are proficient 11
in English language arts by the end of grade 3, that pupils are 12
proficient in mathematics by the end of grade 8, that pupils are 13
attending school regularly, that high school graduates are career 14
and college ready, and for the purposes under subsections (7), (8), 15
and (23). 16
(2) For a district or public school academy to be eligible to 17
receive funding under this section, other than funding under 18
subsection (7), (8), or (23), the district or public school 19
academy, for grades K to 12, must comply with the requirements 20
under section 1280f of the revised school code, MCL 380.1280f, and 21
must use resources to address early literacy and numeracy, and for 22
at least grades K to 12 or, if the district or public school 23
academy does not operate all of grades K to 12, for all of the 24
grades it operates, must implement a multi-tiered system of 25
supports that is an evidence-based framework that uses data driven 26
problem solving to integrate academic and behavioral instruction 27
and that uses intervention delivered to all pupils in varying 28
intensities based on pupil needs. The multi-tiered system of 29
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supports described in this subsection must provide at least all of 1
the following essential components: 2
(a) Team-based leadership. 3
(b) A tiered delivery system. 4
(c) Selection and implementation of instruction, 5
interventions, and supports. 6
(d) A comprehensive screening and assessment system. 7
(e) Continuous data-based decision making. 8
(3) From the state school aid fund money allocated under 9
subsection (1), there is allocated for 2025-2026 an amount not to 10
exceed $1,293,655,000.00 to continue a weighted foundation per 11
pupil payment for districts and public school academies enrolling 12
economically disadvantaged pupils. The department shall pay under 13
this subsection to each eligible district or eligible public school 14
academy an amount per pupil equal to a percentage calculated under 15
subsection (4) multiplied by the target foundation allowance for 16
the following, as applicable: 17
(a) Except as otherwise provided under subdivision (b), (c), 18
or (d) the greater of the following: 19
(i) The number of membership pupils in the district or public 20
school academy who are determined to be economically disadvantaged, 21
as reported to the center in the form and manner prescribed by the 22
center not later than the fifth Wednesday after the pupil 23
membership count day of the immediately preceding fiscal year. 24
(ii) If the district or public school academy is in the 25
community eligibility program, the number of pupils determined to 26
be eligible based on the product of the identified student 27
percentage multiplied by the total number of pupils in the district 28
or public school academy, as reported to the center in the form and 29
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manner prescribed by the center not later than the fifth Wednesday 1
after the pupil membership count day of the immediately preceding 2
fiscal year. These calculations must be made at the building level. 3
This subparagraph only applies to an eligible district or eligible 4
public school academy for the fiscal year immediately following the 5
first fiscal year in which it is in the community eligibility 6
program. As used in this subparagraph, "identified student 7
percentage" means the quotient of the number of pupils in an 8
eligible district or eligible public school academy who are 9
determined to be economically disadvantaged, as reported to the 10
center in a form and manner prescribed by the center, not later 11
than the fifth Wednesday after the pupil membership count day in 12
the fiscal year preceding the first fiscal year in which the 13
eligible district or eligible public school academy is in the 14
community eligibility program, divided by the total number of 15
pupils counted in an eligible district or eligible public school 16
academy on the pupil membership count day in the fiscal year 17
preceding the first fiscal year in which the eligible district or 18
eligible public school academy is in the community eligibility 19
program. 20
(b) If the district or public school academy began operations 21
as a district or public school academy after the pupil membership 22
count day of the immediately preceding school year, the number of 23
membership pupils in the district or public school academy who are 24
determined to be economically disadvantaged, as reported to the 25
center in the form and manner prescribed by the center not later 26
than the fifth Wednesday after the pupil membership count day of 27
the current fiscal year. 28
(c) If the district or public school academy began operations 29
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as a district or public school academy after the pupil membership 1
count day of the current fiscal year, the number of membership 2
pupils in the district or public school academy who are determined 3
to be economically disadvantaged, as reported to the center in the 4
form and manner prescribed by the center not later than the fifth 5
Wednesday after the supplemental count day of the current fiscal 6
year. 7
(d) If, for a particular fiscal year, the number of membership 8
pupils in a district or public school academy who are determined 9
under subdivision (a) to be economically disadvantaged or to be 10
eligible based on the identified student percentage varies by more 11
than 20 percentage points from the number of those pupils in the 12
district or public school academy as calculated under subdivision 13
(a) for the immediately preceding fiscal year caused by an 14
egregious reporting error by the district or public school academy, 15
the department may choose to have the calculations under 16
subdivision (a) instead be made using the number of membership 17
pupils in the district or public school academy who are determined 18
to be economically disadvantaged, as reported to the center in the 19
form and manner prescribed by the center not later than the fifth 20
Wednesday after the supplemental count day of the immediately 21
preceding fiscal year. 22
(4) Each district or public school academy must be assigned an 23
opportunity index score each fiscal year, the value of which is the 24
quotient of the number of economically disadvantaged pupils as 25
determined under subsection (3) for the district or public school 26
academy and the total number of pupils in the district or public 27
school academy in the immediately preceding fiscal year, multiplied 28
by 100 and rounded up to the nearest whole number. Each district or 29
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public school academy must be assigned an opportunity index band as 1
follows: 2
(a) A district or public school academy with an opportunity 3
index score greater than or equal to 0 but less than 20 must be 4
assigned to band 1 and shall receive reimbursement under subsection 5
(3) at a rate of at least 35.0% and less than 36.0%. The 6
reimbursement rate under this subdivision must be an amount equal 7
to the district's opportunity index score minus 1, multiplied by 8
the band adjustment factor applicable to this subdivision, plus 9
35.0%. 10
(b) A district or public school academy with an opportunity 11
index score greater than or equal to 20 but less than 44 must be 12
assigned to band 2 and shall receive reimbursement under subsection 13
(3) at a rate of at least 36.0% and less than 37.5%. The 14
reimbursement rate under this subdivision must be an amount equal 15
to the district's opportunity index score minus 20, multiplied by 16
the band adjustment factor applicable to this subdivision, plus 17
36.0%. 18
(c) A district or public school academy with an opportunity 19
index score greater than or equal to 44 but less than 59 must be 20
assigned to band 3 and shall receive reimbursement under subsection 21
(3) at a rate of at least 37.5% and less than 39.0%. The 22
reimbursement rate under this subdivision must be an amount equal 23
to the district's opportunity index score minus 44, multiplied by 24
the band adjustment factor applicable to this subdivision, plus 25
37.5%. 26
(d) A district or public school academy with an opportunity 27
index score greater than or equal to 59 but less than 73 must be 28
assigned to band 4 and shall receive reimbursement under subsection 29
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(3) at a rate of at least 39.0% and less than 42.0%. The 1
reimbursement rate under this subdivision must be an amount equal 2
to the district's opportunity index score minus 59, multiplied by 3
the band adjustment factor applicable to this subdivision, plus 4
39.0%. 5
(e) A district or public school academy with an opportunity 6
index score greater than or equal to 73 but less than 85 must be 7
assigned to band 5 and shall receive reimbursement under subsection 8
(3) at a rate of at least 42.0% and less than 47.0%. The 9
reimbursement rate under this subdivision must be an amount equal 10
to the district's opportunity index score minus 73, multiplied by 11
the band adjustment factor applicable to this subdivision, plus 12
42.0%. 13
(f) A district or public school academy with an opportunity 14
index score greater than or equal to 85 must be assigned to band 6 15
and shall receive reimbursement under subsection (3) at a rate of 16
47.0%. 17
(g) As used in this subsection, "band adjustment factor" means 18
an amount equal to the difference between the lowest and highest 19
reimbursement bounds for each band, divided by the number of 20
possible opportunity index scores in that band. 21
(5) Except as otherwise provided in this section, a district 22
or public school academy receiving funding under this section shall 23
use that money only to provide instructional programs and direct 24
noninstructional services, including, but not limited to, medical, 25
mental health, or counseling services, for at-risk pupils; for 26
school health clinics; and for the purposes of subsection (6), (7), 27
(8), or (23). In addition, a district that is a school district of 28
the first class or a district or public school academy in which at 29
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least 50% of the pupils in membership were determined to be 1
economically disadvantaged in the immediately preceding state 2
fiscal year, as determined and reported as described in subsection 3
(3), may use the funds it receives under this section for school 4
security or school parent liaison personnel. The uses of the funds 5
described in the immediately preceding sentence must align to the 6
needs assessment and the multi-tiered system of supports model and, 7
for funds spent on parent liaison personnel, must connect parents 8
to the school community. A district or public school academy shall 9
not use any of the money received under this section for 10
administrative costs. The instruction or direct noninstructional 11
services provided under this section may be conducted before or 12
after regular school hours or by adding extra school days to the 13
school year. 14
(6) A district or public school academy that receives funds 15
under this section and that operates a school breakfast program 16
under section 1272a of the revised school code, MCL 380.1272a, 17
shall use from the funds received under this section an amount, not 18
to exceed $10.00 per pupil for whom the district or public school 19
academy receives funds under this section, necessary to pay for 20
costs associated with the operation of the school breakfast 21
program. 22
(1) (7) From the state school aid fund money allocated under 23
subsection (1), appropriated in section 11, there is allocated for 24
2025-2026 2026-2027 an amount not to exceed $33,000,000.00, to 25
support primary health care services provided to children and 26
adolescents up to age 21. These funds must be expended in a form 27
and manner determined jointly by the department and the department 28
of health and human services. When making funding decisions for new 29
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adolescent health centers under this subsection, the department and 1
department of health and human services shall prioritize support 2
for primary health care services in unserved and underserved 3
counties as determined by the department of health and human 4
services. An amount equal to 4% of the funds allocated under this 5
subsection must be made available for technical support and 6
coordination services from a nonprofit organization exclusively 7
dedicated to serving adolescent health centers in this state and 8
that has a membership that includes federally qualified health 9
centers, local public health departments, hospital systems, and 10
public school districts. As a requirement of being awarded the 11
funds under this subsection as prescribed under this subsection, a 12
nonprofit organization described in this subsection shall make 13
readily available technical support and coordination services to 14
all child and adolescent health centers in this state. 15
(2) (8) From the state school aid fund money allocated under 16
subsection (1), appropriated in section 11, there is allocated for 17
2025-2026 2026-2027 an amount not to exceed $10,150,000.00 for the 18
state portion of the hearing and vision screenings as described in 19
part 93 of the public health code, 1978 PA 368, MCL 333.9301 to 20
333.9329, and, from the general state school aid fund money 21
allocated under subsection (1), appropriated in section 11, there 22
is allocated for 2025-2026 2026-2027 an amount not to exceed 23
$1,500,000.00 for the state portion of the dental screenings as 24
described in part 93 of the public health code, 1978 PA 368, MCL 25
333.9301 to 333.9329. A local public health department shall pay at 26
least 50% of the total cost of the screenings. The frequency of the 27
vision screenings must be as required under R 325.13091 to R 28
325.13096 of the Michigan Administrative Code and the frequency of 29
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the hearing screenings must be as required under R 325.3271 to R 1
325.3276 of the Michigan Administrative Code. Funds must be awarded 2
in a form and manner approved jointly by the department and the 3
department of health and human services. 4
(3) Notwithstanding section 17b, the department shall make 5
payments to eligible entities under this subsection section on a 6
schedule determined by the department. 7
(9) Each district or public school academy receiving funds 8
under this section shall submit to the department by July 15 of 9
each fiscal year a report, in the form and manner prescribed by the 10
department, that includes a brief description of each program 11
conducted or services performed by the district or public school 12
academy using funds under this section, the amount of funds under 13
this section allocated to each of those programs or services, the 14
total number of at-risk pupils served by each of those programs or 15
services, and the data necessary for the department and the 16
department of health and human services to verify matching funds 17
for the temporary assistance for needy families program. In 18
prescribing the form and manner of the report, the department shall 19
ensure that districts are allowed to expend funds received under 20
this section on any activities that are permissible under this 21
section. If a district or public school academy does not comply 22
with this subsection, the department shall withhold an amount equal 23
to the August payment due under this section until the district or 24
public school academy complies with this subsection. If the 25
district or public school academy does not comply with this 26
subsection by the end of the fiscal year, the withheld funds are 27
forfeited to the school aid fund. 28
(10) To receive funds under this section, a district or public 29
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school academy must allow access for the department or the 1
department's designee to audit all records related to the program 2
for which it receives those funds. The district or public school 3
academy shall reimburse the state for all disallowances found in 4
the audit. 5
(11) Subject to subsections (6), (7), (8), and (23), for 6
schools in which more than 40% of pupils are identified as at-risk, 7
a district or public school academy may use the funds it receives 8
under this section to implement tier 1, evidence-based practices in 9
schoolwide reforms that are guided by the district's comprehensive 10
needs assessment and are included in the district improvement plan. 11
Schoolwide reforms must include parent and community supports, 12
activities, and services, that may include the pathways to 13
potential program created by the department of health and human 14
services or the communities in schools program. As used in this 15
subsection, "tier 1, evidence-based practices" means research based 16
instruction and classroom interventions that are available to all 17
learners and effectively meet the needs of most pupils. 18
(12) A district or public school academy that receives funds 19
under this section may use those funds to provide research based 20
professional development and to implement a coaching model that 21
supports the multi-tiered system of supports framework. 22
Professional development may be provided to district and school 23
leadership and teachers and must be aligned to professional 24
learning standards; integrated into district, school building, and 25
classroom practices; and solely related to the following: 26
(a) Implementing the multi-tiered system of supports required 27
in subsection (2) with fidelity and utilizing the data from that 28
system to inform curriculum and instruction. 29
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(b) Implementing section 1280f of the revised school code, MCL 1
380.1280f, as required under subsection (2), with fidelity. 2
(13) A district or public school academy that receives funds 3
under subsection (3) may use funds received under subsection (3) 4
for support staff providing services to at-risk pupils. 5
(14) A district or public school academy may use up to 60% of 6
the funds it receives under this section for the following 7
purposes: 8
(a) Up to 30% to reduce the teacher to pupil ratio in grades K 9
to 3. 10
(b) Up to 30% to support retention and recruitment efforts 11
that help reduce staff turnover and vacancies of instructional and 12
support staff if the district or public school academy is assigned 13
to opportunity index band 4, 5, or 6. 14
(15) Funds used as described in subsection (14) must align 15
with the needs assessment and the multi-tiered system of supports 16
model. A district or public school academy shall not use any of the 17
money described in subsection (14) for administrative costs or to 18
supplant existing funding, including, but not limited to, 19
maintaining existing salaries or costs. A district or public school 20
academy shall report its intent to use funds described in 21
subsection (14) to the department by not later than November 1 of 22
the current fiscal year. 23
(16) A district or public school academy determined to be 24
eligible to use a portion of funds received under subsection (3) 25
for the purposes described in subsection (14) retains the ability 26
to use funding for the purposes described in subsection (14) for 27
the fiscal year in which eligibility was determined plus 2 28
additional fiscal years beyond that fiscal year. 29
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(17) Beginning with the fiscal year ending September 30, 2026, 1
and each year thereafter, for a district receiving funding under 2
this section through the opportunity index formula, the district 3
must provide a report to parents or legal guardians that details 4
the amount of funding received under that allocation, how the 5
district distributed that funding in a way to target buildings with 6
the highest needs, and what evidence-based interventions were 7
implemented with those dollars. The report must include a method, 8
including contact information, for parents or legal guardians to 9
provide feedback on the use of these dollars as well as to seek 10
more information about services and interventions available for 11
their children. 12
(18) A district or public school academy that receives funds 13
under this section may use up to 10% of the funds received under 14
this section to provide evidence-based instruction for pre-15
kindergarten instructional and noninstructional services to at-risk 16
pupils. 17
(19) Except as otherwise provided in this subsection, if 18
necessary, the department shall prorate payments under this 19
section, except payments under subsection (7), (8), or (23), by 20
reducing the amount of the allocation as otherwise calculated under 21
this section by an equal percentage per district. Subject to the 22
availability of funds, if proration is necessary under this 23
subsection, the department must ensure that no district receives an 24
amount less than 11.5% of the target foundation for each 25
economically disadvantaged pupil enrolled in the district. 26
(20) If a district is dissolved pursuant to section 12 of the 27
revised school code, MCL 380.12, the intermediate district to which 28
the dissolved district was constituent shall determine the 29
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estimated number of pupils that are economically disadvantaged and 1
that are enrolled in each of the other districts within the 2
intermediate district and provide that estimate to the department 3
for the purposes of distributing funds under this section within 60 4
days after the district is declared dissolved. 5
(21) A district or public school academy that receives funds 6
under this section may use funds received under this section to 7
provide an anti-bullying or crisis intervention program. 8
(22) The department shall collaborate with the department of 9
health and human services to prioritize assigning Pathways to 10
Potential success coaches to elementary schools that have a high 11
percentage of pupils in grades K to 3 who are not proficient in 12
English language arts, based upon state assessments for pupils in 13
those grades. 14
(23) From the state school aid fund money appropriated under 15
section 11, there is allocated for 2023-2024 only an amount not to 16
exceed $10,000,000.00 for an electronic patient data and health 17
care analytic system to be made available to each child and 18
adolescent health center program. The department of health and 19
human services shall collaborate on system implementation with a 20
nonprofit organization exclusively dedicated to serving child and 21
adolescent health center programs in this state and that has a 22
membership that includes federally qualified health centers, local 23
public health departments, hospital systems, and public school 24
districts, including, but not limited to, technology assessment, 25
design, coordination, and system implementation with child and 26
adolescent health center programs. Funds appropriated under this 27
subsection are a work project appropriation and any unexpended 28
funds for 2023-2024 are carried forward into 2024-2025. The purpose 29
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of the work project is to continue to implement an electronic 1
patient data and health care analytic system. The estimated 2
completion date of the work project is September 30, 2028. 3
(24) As used in this section: 4
(a) "At-risk pupil" means a pupil in grades pre-K to 12 for 5
whom the district has documentation that the pupil meets any of the 6
following criteria: 7
(i) The pupil is economically disadvantaged. 8
(ii) The pupil is an English language learner. 9
(iii) The pupil is chronically absent as defined by and reported 10
to the center. 11
(iv) The pupil is a victim of child abuse or neglect. 12
(v) The pupil is a pregnant teenager or teenage parent. 13
(vi) The pupil has a family history of school failure, 14
incarceration, or substance abuse. 15
(vii) The pupil is an immigrant who has immigrated within the 16
immediately preceding 3 years. 17
(viii) The pupil did not complete high school in 4 years and is 18
still continuing in school as identified in the Michigan cohort 19
graduation and dropout report. 20
(ix) For pupils for whom the results of the state summative 21
assessment have been received, is a pupil who did not achieve 22
proficiency on the English language arts, mathematics, science, or 23
social studies content area assessment. 24
(x) Is a pupil who is at risk of not meeting the district's or 25
public school academy's core academic curricular objectives in 26
English language arts or mathematics, as demonstrated on local 27
assessments. 28
(b) "Economically disadvantaged" means a pupil who has been 29
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determined eligible for free or reduced-price meals as determined 1
under the Richard B. Russell national school lunch act, 42 USC 1751 2
to 1769j; who is in a household receiving supplemental nutrition 3
assistance program or temporary assistance for needy families 4
assistance; or who is homeless, migrant, or in foster care, as 5
reported to the center. 6
(c) "English language learner" means limited English 7
proficient pupils who speak a language other than English as their 8
primary language and have difficulty speaking, reading, writing, or 9
understanding English as reported to the center. 10
Sec. 31c. (1) From the state school aid fund money 11
appropriated in section 11, there is allocated for 2025-2026 2026-12
2027 only an amount not to exceed $65,000,000.00 $50,000,000.00 for 13
grants to eligible districts for pilot programs to maintain or 14
establish small classes in grades K to 3 in eligible school 15
buildings in the district. 16
(2) To be eligible for a grant under subsection (1), a 17
district must have at least 1 eligible school building and must 18
apply to the department in the form and manner prescribed by the 19
department. A district shall include in its application a projected 20
budget for maintaining or establishing small classes in grades K to 21
3 and shall demonstrate in the projected budget that at least 30% 22
10% of the funds received by the district under section 31a 22b(4) 23
will be used to support small classes under this section. 24
(3) For a school building to be considered an eligible school 25
building under subsection (2), the school building must meet all of 26
the following requirements: 27
(a) Operate at least 1 of grades K to 3. 28
(b) Be operated by a district that operates all of grades K to 29
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12 and that receives funds under section 31a.22b. 1
(c) Be located in a district that is in an opportunity index 2
band, as described in section 31a, determined under section 6(21), 3
of 4 or higher. 4
(4) Not more than 25% of the total allocation under this 5
section may be paid to any single district. The department shall 6
make allocations under this section to districts that are 7
geographically diverse, including urban, suburban, and rural 8
districts. Grants issued under this section must be awarded to at 9
least the following districts: 10
(a) Muskegon Heights Public School Academy System. 11
(b) Benton Harbor Area Schools. 12
(c) Flint School District. 13
(d) Wayne-Westland Community School District. 14
(5) A district that receives funds under this section shall 15
use the funds to maintain or establish small classes in grades K to 16
3 in school buildings of the district for which funds are received 17
under this section. The average class size must be not more than 17 18
pupils per class, with not more than 19 pupils in any particular 19
class. A district that receives funds under this section shall use 20
at least 30% 10% of the funds the district receives for 2025-2026 21
2026-2027 under section 31a 22b(4) for the purposes of this 22
section. 23
(6) Funding to districts under this section for 2025-2026 24
2026-2027 is intended to be for the first of 2 years of funding. 25
(7) The funds allocated in this section for 2026-2027 are a 26
work project appropriation, and any unexpended funds for 2025-2026 27
2026-2027 are carried forward into 2026-2027. 2027-2028. The 28
purpose of the work project is to lower class sizes in grades K to 29
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3. The estimated completion date of the work project is September 1
30, 2030.2031. 2
(8) Notwithstanding section 17b, the department shall make 3
payments under this section on a schedule determined by the 4
department. 5
Sec. 31d. (1) From the state school aid fund money 6
appropriated in section 11, there is allocated an amount not to 7
exceed $29,553,400.00 for 2025-2026 2026-2027 for the purpose of 8
making payments to districts and other eligible entities under this 9
section. 10
(2) The amounts allocated from state sources under this 11
section are used to pay the amount necessary to reimburse districts 12
for 6.0127% of the necessary costs of the state mandated portion of 13
lunch programs provided by those districts. The department shall 14
calculate the amount due to each district under this section using 15
the methods of calculation adopted by the Michigan supreme court in 16
the consolidated cases known as Durant v State of Michigan, 456 17
Mich 175 (1997). 18
(3) The payments made under this section include all state 19
payments made to districts so that each district receives at least 20
6.0127% of the necessary costs of operating the state mandated 21
portion of the lunch program in a fiscal year. 22
(4) The payments made under this section to districts and 23
other eligible entities that are not required under section 1272a 24
of the revised school code, MCL 380.1272a, to provide a lunch 25
program must be in an amount not to exceed $10.00 per eligible 26
pupil plus 5 cents for each free lunch and 2 cents for each reduced 27
price lunch provided, as determined by the department. 28
(5) From the federal funds appropriated in section 11, there 29
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is allocated for 2025-2026 2026-2027 all available federal funding, 1
estimated at $901,400,000.00 for child nutrition programs and, for 2
2025-2026, 2026-2027, all available federal funding, estimated at 3
$22,000,000.00, for food distribution programs. 4
(6) Notwithstanding section 17b, the department shall make 5
payments to eligible entities other than districts under this 6
section on a schedule determined by the department. 7
(7) In purchasing food for a lunch program funded under this 8
section, a district or other eligible entity shall give preference 9
to food that is grown or produced by Michigan businesses if it is 10
competitively priced and of comparable quality. 11
(8) In addition to the appropriations in section 11, if the 12
amount allocated in subsection (1) is insufficient to fully 13
reimburse districts for meals as required under this section, there 14
is appropriated from the school meals reserve fund created under 15
section 30e the amount necessary to fully fund these 16
reimbursements. 17
Sec. 31f. (1) From the state school aid fund money 18
appropriated in section 11, there is allocated an amount not to 19
exceed $16,900,000.00 for 2025-2026 2026-2027 for the purpose of 20
making payments to districts to reimburse for the cost of providing 21
breakfast. 22
(2) The funds allocated under this section for school 23
breakfast programs are made available to all eligible applicant 24
districts that meet all of the following criteria: 25
(a) The district participates in the federal school breakfast 26
program and meets all standards as prescribed by 7 CFR parts 210, 27
220, 225, 226, and 245. 28
(b) Each breakfast eligible for payment meets the federal 29
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standards described in subdivision (a). 1
(3) The payment for a district under this section is at a per 2
meal rate equal to the lesser of the district's actual cost or 100% 3
of the statewide average cost of a meal served, as determined and 4
approved by the department, less federal reimbursement, participant 5
payments, and state breakfast reimbursements received under section 6
30d. The department shall determine the statewide average cost 7
using costs as reported in a manner approved by the department for 8
the preceding school year. 9
(4) Notwithstanding section 17b, the department may make 10
payments under this section pursuant to an agreement with the 11
department. 12
(5) In purchasing food for a school breakfast program funded 13
under this section, a district shall give preference to food that 14
is grown or produced by Michigan businesses if it is competitively 15
priced and of comparable quality. 16
(6) In addition to the appropriations in section 11, if the 17
amount allocated in subsection (1) is insufficient to fully 18
reimburse districts for meals as required under this section, there 19
is appropriated from the school meals reserve fund created under 20
section 30e the amount necessary to fully fund these 21
reimbursements. 22
Sec. 31n. (1) From the state school aid fund money 23
appropriated in section 11, there is allocated for 2025-2026 2026-24
2027 for the purposes of this section an amount not to exceed 25
$106,545,000.00 and from the general fund money appropriated in 26
section 11, there is allocated for 2025-2026 2026-2027 for the 27
purposes of this section an amount not to exceed $1,300,000.00. The 28
department and the department of health and human services shall 29
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continue a program to distribute this funding to add licensed 1
behavioral health providers for general education pupils, and 2
recipients of the funds under subsection (6) shall continue to seek 3
federal Medicaid match funding for all eligible mental health and 4
support services. 5
(2) The department and the department of health and human 6
services shall maintain an advisory council for programs funded 7
under this section and any other funding under this act to improve 8
or maintain the mental health of students, pupils, except for 9
programs funded under section 31a(7) and (8). 31a(1) and (2). The 10
advisory council shall define goals for implementation of programs, 11
and shall provide feedback on that implementation. At a minimum, 12
the advisory council shall consist of representatives of state 13
associations representing school health, school mental health, 14
school counseling, education, health care, and other organizations, 15
representatives from the department and the department of health 16
and human services, and a representative from the school safety and 17
mental health commission. The department and department of health 18
and human services, working with the advisory council, shall 19
determine an approach to increase capacity for mental health and 20
support services in schools for general education pupils, and shall 21
determine where that increase in capacity qualifies for federal 22
Medicaid match funding. 23
(3) The advisory council shall develop a fiduciary agent 24
checklist for intermediate districts to facilitate development of a 25
plan to submit to the department and to the department of health 26
and human services. The department and department of health and 27
human services shall determine the requirements and format for 28
intermediate districts to submit a plan for possible funding under 29
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subsection (6). The department shall make applications for funding 1
for this program available to districts and intermediate districts 2
by not later than December 1 of each fiscal year for which funds 3
are allocated under this section and shall award the funding by not 4
later than February 1 of each fiscal year for which funds are 5
allocated under this section. 6
(4) The department of health and human services shall amend 7
ensure that the state Medicaid plan continues to be written in a 8
way sufficient to obtain appropriate Medicaid waivers as necessary 9
for the purpose of generating to generate additional Medicaid match 10
funding for school mental health and support services for general 11
education pupils , and this expansion is called through the Caring 12
for Students (C4S) expansion. 13
(5) From the state school aid fund money allocated under 14
subsection (1), there is allocated for 2025-2026 2026-2027 an 15
amount not to exceed $14,300,000.00 to be distributed to the 16
network of child and adolescent health centers to place a licensed 17
master's level behavioral health provider in schools that do not 18
currently have services available to general education students. 19
pupils. Child and adolescent health centers that are part of the 20
network described in this subsection shall provide a commitment to 21
maintain services and implement all available federal Medicaid 22
match methodologies. The department of health and human services 23
shall use all existing or additional federal Medicaid match 24
opportunities to maximize funding allocated under this subsection. 25
The department shall provide funds under this subsection to child 26
and adolescent health centers that are part of the network 27
described in this subsection in the same proportion that funding 28
under section 31a(7) 31a(1) is provided to child and adolescent 29
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health centers that are part of the network described in this 1
subsection and that are located and operating in those districts. A 2
payment from funding allocated under this subsection must not be 3
paid to an entity that is not part of the network described in this 4
subsection. 5
(6) From the state school aid fund money allocated under 6
subsection (1), there is allocated for 2025-2026 2026-2027 an 7
amount not to exceed $87,245,000.00 to be distributed to 8
intermediate districts for the provision of mental health and 9
support services to general education students. pupils. Recipients 10
of funds under this subsection shall continue to seek federal 11
Medicaid match funding for all eligible mental health and support 12
services. If a district or intermediate district is not able to 13
procure the services of a licensed master's level behavioral health 14
provider, the district or intermediate district shall notify the 15
department and the department of health and human services and, if 16
the department and department of health and human services verify 17
that the district or intermediate district attempted to procure 18
services from a master's level behavioral health provider and was 19
not able to do so, then the district or intermediate district may 20
instead procure services from a provider with less than a master's 21
degree in behavioral health. To be able to use the exemption in the 22
immediately preceding sentence, the district or intermediate 23
district must submit evidence satisfactory to the department and 24
department of health and human services demonstrating that the 25
district or intermediate district took measures to procure the 26
services of a licensed master's level behavioral health provider 27
but was unable to do so, and the department and department of 28
health and human services must be able to verify this evidence. 29
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From the first $56,173,600.00 of the funds allocated under this 1
subsection, the department shall distribute up to $1,003,100.00 for 2
2025-2026 2026-2027 to each intermediate district that submits a 3
plan approved by the department and the department of health and 4
human services by February 1 of each fiscal year for which funds 5
are allocated under this section. The department shall distribute 6
the remaining $31,071,400.00 of the funds allocated under this 7
subsection for 2025-2026 2026-2027 to intermediate districts that 8
submit a plan approved by the department and the department of 9
health and human services by February 1 of each fiscal year for 10
which funds are allocated under this section on an equal per-pupil 11
basis based on the combined total number of pupils in membership in 12
the intermediate district and its constituent districts, including 13
public school academies that are considered to be constituent 14
districts under section 705(7) of the revised school code, MCL 15
380.705. The department and department of health and human services 16
shall work cooperatively in providing oversight and assistance to 17
intermediate districts and shall monitor the program upon 18
implementation. An intermediate district shall use funds awarded 19
under this subsection to provide funding to its constituent 20
districts, including public school academies that are considered to 21
be constituent districts under section 705(7) of the revised school 22
code, MCL 380.705, for the provision of mental health and support 23
services to general education students. pupils. In addition to the 24
criteria identified under subsection (9), an intermediate district 25
shall consider geography, cost, or other challenges when awarding 26
funding to its constituent districts. Districts receiving funding 27
under this subsection are encouraged to provide suicide prevention 28
and awareness education and counseling. 29
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(7) If funding awarded to an intermediate district remains 1
after funds are provided by the intermediate district to its 2
constituent districts, the intermediate district shall notify the 3
department and department of health and human services and submit 4
evidence satisfactory to the department and department of health 5
and human services demonstrating how it would like to use funds for 6
purposes other than hiring licensed behavioral health providers for 7
general education pupils. With permission from the department and 8
department of health and human services, the intermediate district 9
may hire or contract for experts to provide mental health and 10
support services to general education students pupils residing 11
within the boundaries of the intermediate district, including, but 12
not limited to, expanding, hiring, or contracting for staff and 13
experts to provide those services directly or to increase access to 14
those services through coordination with outside mental health 15
agencies; the intermediate district may also contract with 1 or 16
more other intermediate districts for coordination and the 17
facilitation of activities related to providing mental health and 18
support services to general education students pupils residing 19
within the boundaries of the intermediate district; the 20
intermediate district may also use the funds under this section to 21
create or strengthen school-based behavioral health assessment 22
teams that focus on providing age-appropriate interventions, 23
identifying behaviors that suggest a pupil may be struggling with 24
mental health challenges, providing treatment and support of the 25
pupil, and using disciplinary interventions and the criminal 26
justice system as methods of last resort; and the intermediate 27
district may also use the funds under this section to provide 28
evidence-based trainings that support student pupil mental health. 29
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(8) If funding awarded to an intermediate district under this 1
section remains unspent, or if the intermediate district submits an 2
application requesting a lower allocation than the maximum amount 3
permitted, the department, in conjunction with the intermediate 4
district, may reallocate the funds to another intermediate district 5
or other intermediate districts capable of expending the funds 6
before the funding deadline in accordance with this section as if 7
those funds were originally allocated to the intermediate district 8
or intermediate districts to which the funds are being reallocated. 9
(9) A district requesting funds under this section from the 10
intermediate district in which it is located shall submit an 11
application for funding for the provision of mental health and 12
support services to general education pupils. A district receiving 13
funding from the application process described in this subsection 14
shall provide services to nonpublic students pupils upon request. 15
An intermediate district shall not discriminate against an 16
application submitted by a public school academy simply on the 17
basis of the applicant being a public school academy. The 18
department shall approve grant applications based on the following 19
criteria: 20
(a) The district's commitment to maintain mental health and 21
support services delivered by licensed providers into future fiscal 22
years. 23
(b) The district's commitment to work with its intermediate 24
district to use funding it receives under this section that is 25
spent by the district for general education pupils toward 26
participation in federal Medicaid match methodologies. A district 27
must provide a local match of at least 20% of the funding allocated 28
to the district under section 31n. 29
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(c) The district's commitment to adhere to any local funding 1
requirements determined by the department and the department of 2
health and human services. 3
(d) The extent of the district's existing partnerships with 4
community health care providers or the ability of the district to 5
establish such partnerships. 6
(e) The district's documentation of need, including gaps in 7
current mental health and support services for the general 8
education population. 9
(f) The district's submission of a formal plan of action 10
identifying the number of schools and students pupils to be served. 11
(g) Whether the district will participate in ongoing 12
trainings. 13
(h) Whether the district will submit an annual report to the 14
state. 15
(i) Whether the district demonstrates a willingness to work 16
with the state to establish program and service delivery 17
benchmarks. 18
(j) Whether the district has developed a school safety plan or 19
is in the process of developing a school safety plan. 20
(k) Any other requirements determined by the department or the 21
department of health and human services. 22
(10) Funding under this section, including any federal 23
Medicaid funds that are generated, must not be used to supplant 24
existing services. 25
(11) Both of the following are allocated to the department of 26
health and human services from the general fund money allocated 27
under subsection (1): 28
(a) For 2025-2026, 2026-2027, an amount not to exceed 29
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$1,000,000.00 for the purpose of upgrading technology and systems 1
infrastructure and other administrative requirements to support the 2
programs funded under this section. 3
(b) For 2025-2026, 2026-2027, an amount not to exceed 4
$300,000.00 for the purpose of administering the programs under 5
this section and working on generating additional Medicaid funds as 6
a result of programs funded under this section. 7
(12) From the state school aid fund money allocated under 8
subsection (1), there is allocated for 2025-2026 2026-2027 an 9
amount not to exceed $5,000,000.00 to intermediate districts on an 10
equal per intermediate district basis for the purpose of 11
administering programs funded under this section. Recipients of the 12
funds under this subsection shall continue to seek federal Medicaid 13
match funding for all eligible mental health and support services 14
and participate in all learning collaboratives about C4S required 15
by the department and department of health and human services. 16
(13) The department and the department of health and human 17
services shall work with the advisory council to develop proposed 18
measurements of outcomes and performance. Those measurements must 19
include, at a minimum, the number of pupils served, the number of 20
schools served, and where those pupils and schools were located. 21
The department and the department of health and human services 22
shall compile data necessary to measure outcomes and performance, 23
and districts and intermediate districts receiving funding under 24
this section shall provide data requested by the department and 25
department of health and human services for the measurement of 26
outcomes and performance. The department and department of health 27
and human services shall provide an annual report by not later than 28
December 1 of each year to the house and senate appropriations 29
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subcommittees on school aid and health and human services, to the 1
house and senate fiscal agencies, and to the state budget director. 2
At a minimum, the report must include measurements of outcomes and 3
performance, proposals to increase efficacy and usefulness, 4
proposals to increase performance, and proposals to expand 5
coverage. 6
(14) A district or intermediate district that receives funding 7
directly or indirectly under this section may carry over any 8
unexpended funds received under this section for up to 2 fiscal 9
years beyond the fiscal year in which the funds were received. 10
(15) As used in this section, "general education pupil" 11
includes children served under sections 32d and 32t. 12
Sec. 31aa. (1) From the state school aid fund money 13
appropriated in section 11, there is allocated $300,000,000.00 for 14
2025-2026 2026-2027 only, and from the general fund money 15
appropriated in section 11, there is allocated $21,000,000.00 for 16
2025-2026 only, to support school safety and mental health. 17
(2) From the state school aid fund money allocated in 18
subsection (1), an amount not to exceed $200,000,000.00, and from 19
the general fund money allocated in subsection (1), an amount not 20
to exceed $14,000,000.00 $255,000,000.00 may be used to provide 21
payments to districts, intermediate districts, nonpublic schools, 22
and the Michigan Schools for the Deaf and Blind that opt in and 23
agree to receive funding under this subsection, for activities to 24
improve student mental health and improve student safety. The 25
allowable expenditures of funds under this subsection are as 26
follows: 27
(a) Hiring or contracting for support staff for student mental 28
health needs, including, but not limited to, school psychologists, 29
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social workers, counselors, and school nurses. 1
(b) Purchasing and implementing mental health screening tools. 2
(c) Purchasing a statewide, integrated technology platform 3
that streamlines behavioral health documentation and care 4
coordination. 5
(d) Providing school-based mental health personnel access to 6
consultation with behavioral health clinicians to respond to 7
complex student mental health needs. 8
(e) Purchasing and implementing an online behavioral health 9
tool moderated and led by licensed behavioral health professionals. 10
(f) Hiring or contracting a behavioral health coordinator. 11
(g) Evidence-based trainings to support mental health. 12
(h) Costs associated with collaboration between school 13
employees, families, and community partners to address the 14
academic, behavioral, and social needs of all students through 15
collaborative partnerships, resource coordination, data collection, 16
and data sharing. 17
(i) Costs associated with conducting a systematic school 18
mental health needs assessment and resource mapping that identifies 19
programmatic and systemic needs and helps staff determine 20
priorities and create action plans. 21
(j) Coordination with local law enforcement. 22
(k) Training for school staff on threat assessment. 23
(l) Training for school staff and students on threat response. 24
(m) Training for school staff on crisis communication. 25
(n) Safety infrastructure, including, but not limited to, 26
cameras, door blocks, hardened vestibules, window screening, and 27
technology necessary to operate buzzer systems. This may also 28
include firearm detection software that integrates to existing 29
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security cameras to detect and alert school personnel and first 1
responders to visible firearms on school property. 2
(o) Age-appropriate training for students and families on 3
responsible firearm ownership, including safe handling and safe 4
storage of firearms. 5
(p) School resource officers and safety dogs. School resource 6
officers hired under this subsection must be properly licensed and 7
in good standing with the Michigan commission on law enforcement 8
standards, and must be in compliance with all applicable laws. 9
(q) Student Safety Management System, the information 10
technology platform and related services to improve student safety 11
by mitigating cyberbullying, school violence, human trafficking, 12
and self-harm that supports students from grades K to 12. 13
(r) A secure platform, administered by the department of state 14
police, for school officials, emergency responders, and emergency 15
management coordinators to house all school safety-related items, 16
including, but not limited to, EOP templates, EOP guidance, 17
reference documents, and security assessments. The platform should 18
use existing password-protected access control methods schools 19
currently utilize and, to the extent possible, be capable of 20
integrating with existing platforms or technologies used by 21
districts for school safety. Through permissions-based access 22
control, the platform should be able to relay information clearly 23
and in real time to each person or entity necessary to provide a 24
unified response to a safety incident, or to take appropriate 25
action in response to an anticipated disruption to the normal 26
functions of the surrounding community. 27
(s) Emergency infrastructure needs to respond to an immediate 28
threat to the health or safety of students and staff in the 29
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district, intermediate district, nonpublic school, or the Michigan 1
Schools for the Deaf and Blind. A district, intermediate district, 2
nonpublic school, or the Michigan Schools for the Deaf and Blind 3
shall not expend funds for this purpose without first obtaining 4
approval from the department. In making a determination of 5
approval, the department shall, at a minimum, assess whether the 6
district, intermediate district, nonpublic school, or the Michigan 7
Schools for the Deaf and Blind is responding to an immediate threat 8
to the health or safety of students and staff, and whether the 9
district, intermediate district, nonpublic school, or the Michigan 10
Schools for the Deaf and Blind has other sources of funding that 11
should be utilized first. 12
(t) A contract with a vendor for a comprehensive safety and 13
security assessment or a comprehensive safety and security event 14
assessment in schools operated by the district, intermediate 15
district, nonpublic school, or the Michigan Schools for the Deaf 16
and Blind. 17
(u) An emergency response system. 18
(v) Implementing cell phone free school policies. As used in 19
this subdivision, "cell phone free school policy" means a policy 20
that prohibits students from accessing or using a personal 21
communication device capable of telecommunication or digital 22
communication during instructional time, as determined by the 23
school. 24
(3) By not later than December 31 of each fiscal year, from 25
the state school aid fund money allocated in subsection (1), the 26
department shall make payments to districts, intermediate 27
districts, and the Michigan Schools for the Deaf and Blind that opt 28
in and agree to receive funding in an equal amount per pupil based 29
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on the total number of pupils in membership in each district, 1
intermediate district, and the Michigan Schools for the Deaf and 2
Blind that opts in and agrees to receive funding. By December 31 of 3
each fiscal year, from the general fund money allocated in 4
subsection (2), the department shall make payments to nonpublic 5
schools that opt in and agree to receive funding in an equal amount 6
per pupil based on the total number of pupils in membership in each 7
nonpublic school that opts in and agrees to receive funding, using 8
pupil counts determined by the department. The department shall 9
ensure that the amount per pupil paid to nonpublic schools does not 10
exceed the amount per pupil paid to districts and intermediate 11
districts. Districts, intermediate districts, and the Michigan 12
Schools for the Deaf and Blind , and nonpublic schools may opt in 13
and agree to receive funding in a form and manner determined by the 14
department. 15
(4) From the state school aid fund money allocated in 16
subsection (1), there is allocated an amount not to exceed 17
$50,000,000.00, and from the general fund money allocated in 18
subsection (1), there is allocated an amount not to exceed 19
$3,500,000.00 for competitive grants to districts, intermediate 20
districts, and nonpublic schools for school resource officers and 21
safety dogs. To receive funding under this subsection, a district, 22
intermediate district, or nonpublic school must apply for funding 23
to the department in a form and manner prescribed by the 24
department. The department shall prioritize applicants who include 25
a spending plan to sustain salaries after grant funding has 26
concluded. Recipients of funding under this subsection shall ensure 27
that any school resource officer hired with these funds has 28
completed training by the Michigan commission on law enforcement 29
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standards.$20,000,000.00 for grants to districts to support the 1
efforts of community violence intervention plans to reduce or 2
prevent youth violence. Both of the following apply to grants 3
described in this subsection: 4
(a) Districts must apply on a competitive basis for funding 5
under this subsection in a form and manner determined by the 6
department. The department shall coordinate with the office of 7
community violence intervention in the department of health and 8
human services to evaluate applications submitted under this 9
subsection. Awards must be granted based on competitive criteria 10
determined by the department and the department of health and human 11
services but must prioritize grants for local district plans that 12
include comprehensive strategies with demonstrated external 13
partnerships to support successful implementation. 14
(b) Districts may use funding received under this subsection 15
to contract with nonprofits, community-based organizations, subject 16
matter experts, or other governmental entities to implement a plan 17
to reduce or prevent youth violence. A plan to reduce or prevent 18
youth violence implemented under this subsection must use evidence-19
based practices, include mentorship and community engagement 20
strategies, and may include, but is not limited to, increased 21
academic, counseling, health, and wrap-around services to youth. 22
(5) From the state school aid fund money allocated in 23
subsection (1), there is allocated an amount not to exceed 24
$50,000,000.00 and from the general fund money allocated in 25
subsection (1), there is allocated an amount not to exceed 26
$3,500,000.00 for competitive grants to districts, intermediate 27
districts, and nonpublic schools to hire or contract for support 28
staff for student mental health needs, including, but not limited 29
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to, school psychologists, social workers, and counselors. To 1
receive funding under this subsection, a district, intermediate 2
district, or nonpublic school must apply for funding to the 3
department in a form and manner prescribed by the department. The 4
department shall prioritize applicants that include a spending plan 5
to sustain salaries after grant funding has concluded. 6
$25,000,000.00 to districts and intermediate districts that opt in 7
and agree to receive funding on an equal per-pupil basis. All of 8
the following apply to funds received under this subsection: 9
(a) Districts and intermediate districts that receive funds 10
under this subsection must implement a behavior warning system 11
described in this subdivision. The department shall select a vendor 12
to provide districts and intermediate districts with a computer-13
based behavior warning system that meets all of the following 14
requirements: 15
(i) Provides a common way of identifying and collecting early 16
behaviors that could require intervention to prevent abuse, self-17
harm, or violence in schools. As used in this subparagraph, "early 18
behaviors that require intervention to prevent abuse, self-harm, or 19
violence in schools" includes, but is not limited to, any of the 20
following behaviors: 21
(A) Changes in attendance. 22
(B) Changes in academic performance. 23
(C) Changes in emotional response. 24
(D) Withdrawal. 25
(E) The beginning signs of self-harm. 26
(F) Problematic peer interaction. 27
(G) Discipline concerns that could result in any of the 28
following outcomes: 29
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(I) Specific interventions, including mental health or 1
behavioral supports. 2
(II) Academic support. 3
(III) Parent or legal guardian conferences. 4
(IV) Discipline referrals. 5
(V) Other restorative practices. 6
(ii) Utilizes tools to inform any behavioral threat assessment 7
and assessment teams. 8
(iii) Ensures that all information recorded in the computer-9
based system remains confidential, in accordance with 20 USC 1232g, 10
commonly referred to as the family educational rights and privacy 11
act of 1974, and state law. 12
(b) The vendor selected under subdivision (a) must provide 13
school personnel with training to identify warning signs and how to 14
use the computer-based system described in subdivision (a). 15
(c) Using funds allocated under this subsection, districts 16
shall implement a technology tool capable of screening visitors 17
against national sex offender registries in all states. The 18
technology tool described in this subdivision must provide a badge 19
to the visitor, and must store a picture of the visitor and a 20
record of the visitor's campus destinations. A district shall 21
request that a visitor provide identification before receiving a 22
badge described in this subdivision. However, a district may 23
accommodate a visitor without any form of identification in a way 24
that aligns with district policy and prioritizes the protection of 25
students, teachers, and staff. As used in this subdivision, 26
"visitor" includes any contractor hired by the district. 27
(d) Using funds allocated under this subsection, districts 28
must implement a mobile panic alert system capable of connecting 29
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disparate emergency services technologies to ensure real-time 1
coordination between local and state law enforcement and first 2
responder agencies. The system described in this subdivision must 3
integrate with local public safety answering point infrastructure 4
to transmit 9-1-1 calls and mobile activations. 5
(e) Districts and intermediate districts may use funds 6
allocated under this subsection for activities and equipment that 7
further promote cardiac emergency response plan preparedness, 8
including, but not limited to, the purchase and maintenance of 9
automated external defibrillators (AEDs), the purchase of CPR 10
training kits or CPR training for faculty and staff, or the 11
purchase of basic first aid training and educational material. 12
(6) Recipients of funding under this section must provide a 13
final expense report to the department by July 1 of each fiscal 14
year. If the department determines that the eligible recipient has 15
misused the funds allocated under this section, the eligible 16
recipient shall reimburse the department for the amount of state 17
funding misused. 18
(7) The department shall use the information received under 19
subsection (6) to compile a report that includes the number of 20
recipients that have hired school resource officers using funds 21
received under this section and any supporting information provided 22
by the recipients. By not later than August 1 of each year, the 23
department shall provide the report compiled under this subsection 24
to the senate and house appropriations subcommittees on school aid, 25
the senate and house fiscal agencies, the senate and house policy 26
offices, the state budget office, and the Michigan commission on 27
law enforcement standards. 28
(8) Districts receiving funds under this section must 29
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coordinate with intermediate districts to avoid duplication of 1
services and to streamline delivery of services to students. 2
(9) To receive funding under this section, a district, an 3
intermediate district, a nonpublic school, or the Michigan Schools 4
for the Deaf and Blind must agree to be subject to a comprehensive 5
investigation , must affirmatively agree to waive any privilege 6
that may otherwise protect information from disclosure in the event 7
of a mass casualty event, and must agree to comply with a 8
comprehensive investigation. after a mass casualty event, as 9
defined in subsection (11). All of the following apply to a 10
comprehensive investigation described in this subsection: 11
(a) The comprehensive investigation will assess the 12
circumstances surrounding the mass casualty event, including, but 13
not limited to: 14
(i) Emergency response effectiveness. 15
(ii) Compliance with safety protocols. 16
(iii) Communication procedures. 17
(iv) Any factors contributing to the incident. 18
(b) The governor shall designate an appropriate person or 19
investigative entity to conduct the comprehensive investigation. 20
This person or investigative entity may include, but is not limited 21
to, state law enforcement agencies, independent review boards, or 22
specially appointed task forces. The person or designated 23
investigative entity has the authority to do all of the following: 24
(i) Access relevant records and data from the district. 25
(ii) Interview witnesses and district personnel involved. 26
(iii) Issue findings and recommendations based on the 27
investigation. 28
(c) The person or investigative entity designated in 29
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subdivision (b) shall prepare a detailed report of its findings and 1
submit the report to the governor and relevant legislative 2
committees within 90 days following the conclusion of the 3
investigation. The report must include recommendations for 4
preventing future incidents and improving school safety protocols. 5
(10) Funds allocated under subsection (4) for 2025-2026 2026-6
2027 are a work project appropriation, and any unexpended funds for 7
2025-2026 2026-2027 are carried forward into 2026-2027. 2027-2028. 8
The purpose of the work project is to continue providing funding to 9
support districts, intermediate districts, and nonpublic schools in 10
having school resource officers. support the work of community 11
violence intervention programs in districts and intermediate 12
districts. The estimated completion date of the work project is 13
September 30, 2029.2031. 14
(11) Funds allocated under subsection (5) for 2025-2026 are a 15
work project appropriation, and any unexpended funds for 2025-2026 16
are carried forward into 2026-2027. The purpose of the work project 17
is to continue providing funding to support districts, intermediate 18
districts, and nonpublic schools in hiring staff to support student 19
mental health. The estimated completion date of the work project is 20
September 30, 2029. 21
(11) (12) As used in this section: 22
(a) "Mass casualty event" means any of the following that 23
occur an incident of targeted violence that occurs on school 24
grounds or at a school-sponsored event and that meets all of the 25
following criteria: 26
(i) An incident resulting in significant injuries to not fewer 27
than 3 individuals.The incident involves the use of a lethal 28
weapon. As used in this subparagraph, "lethal weapon" means a 29
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firearm as defined in 18 USC 921, an explosive or incendiary 1
device, or a weapon defined in section 222 of the Michigan penal 2
code, 1931 PA 328, MCL 750.222. 3
(ii) An The incident resulting in fatalities.results in at 4
least 1 fatality, or significant bodily injuries to not fewer than 5
2 individuals, excluding the perpetrator. 6
(iii) An The incident that exceeds the normal resources for 7
emergency response available in the jurisdiction where the incident 8
takes place. 9
(iv) An incident that results in a sudden and timely surge of 10
injured individuals necessitating emergency services. 11
(b) "Safety dog" means a dog that is contracted by a law 12
enforcement agency of this state, a local unit of government of 13
this state, or a district or an intermediate district and that is 14
trained for detection of firearms, explosives, narcotics, or vape 15
substances.is the result of a deliberate and malicious act and is 16
not a motor vehicle accident. 17
(b) "Motor vehicle accident" means that term as defined in 18
section 503 of the Michigan vehicle code, 1949 PA 300, MCL 257.503. 19
(c) "School grounds" means all properties owned or operated by 20
the district, including transportation vehicles owned or operated 21
by the district. 22
(d) "School-sponsored event" means any activity organized or 23
sanctioned by the district. 24
(12) (13) Notwithstanding section 17b, the department shall 25
make payments under this section on a schedule determined by the 26
department. 27
Sec. 32d. (1) From the state school aid fund money 28
appropriated in section 11, there is allocated to eligible 29
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intermediate districts and consortia of intermediate districts for 1
great start readiness programs and other purposes described in this 2
section an amount not to exceed $609,720,000.00 for 2024-2025 and 3
$638,217,600.00 for 2025-2026. From the general fund money 4
appropriated under section 11, there is allocated $600,000.00 for 5
2024-2025 and $350,000.00 for 2025-2026, $801,667,600.00 for 2026-6
2027, and from the great start readiness reserve fund money 7
appropriated in section 11, there is allocated $18,000,000.00 for 8
2024-2025 and 2025-2026 2026-2027 for the purposes of this section. 9
For 2024-2025, an intermediate district or consortium shall use 10
funds allocated under this section for great start readiness 11
programs to provide part-day programs, school-day programs, GSRP 12
extended programs, GSRP/Head Start school-day blended programs, or 13
GSRP/Head Start extended blended programs that are comprehensive, 14
free, compensatory classroom programs designed to improve the 15
readiness and subsequent achievement of children who meet the 16
participant eligibility and prioritization guidelines as defined by 17
the department of lifelong education, advancement, and potential. 18
For 2025-2026, an An intermediate district or consortium shall use 19
funds allocated under this section for eligible great start 20
readiness program options. For a child to be eligible to 21
participate in a program under this section, the child must be at 22
least 4, but less than 5, years of age as of September 1 of the 23
school year in which the program is offered and must meet those 24
eligibility and prioritization guidelines. After eligible children 25
who will be 4 years of age as of September 1 are enrolled, a child 26
who is not 4 years of age as of September 1, but who will be 4 27
years of age by not later than December 1, is eligible to 28
participate if both of the following are met: 29
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(a) The child's parent or legal guardian seeks a waiver from 1
the September 1 eligibility date by submitting a request for 2
enrollment in a program to the responsible intermediate district. 3
(b) The child meets eligibility and prioritization guidelines. 4
(2) From the state school aid fund money allocated under 5
subsection (1), an amount not to exceed $597,720,000.00 for 2024-6
2025 and $626,217,600.00 $764,667,600.00 for 2025-2026 2026-2027 is 7
allocated to intermediate districts or consortia of intermediate 8
districts based on the formula in section 39. An intermediate 9
district or consortium of intermediate districts receiving funding 10
under this section shall act as the fiduciary for the great start 11
readiness programs. An intermediate district or consortium of 12
intermediate districts receiving funding under this section may 13
collaborate with local governments to identify children eligible 14
for programs funded under this section and may contract with local 15
governments to provide services. To be eligible to receive funds 16
allocated under this subsection from an intermediate district or 17
consortium of intermediate districts, a district, a consortium of 18
districts, a local government, or a public or private for-profit or 19
nonprofit legal entity or agency must comply with this section and 20
section 39. For 2024-2025, if, due to the number of GSRP extended 21
program or GSRP/Head Start extended blended program slots awarded, 22
the amount allocated in this subsection is insufficient to award at 23
least the same number of part-day program and school-day program 24
slots as awarded in the immediately preceding fiscal year, there is 25
appropriated from the great start readiness program reserve fund 26
the amount necessary to fully award the same number of part-day 27
program and full-day program slots as awarded in the immediately 28
preceding fiscal year. For 2025-2026, if If the amount allocated in 29
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this subsection is insufficient to fully fund allocations 1
calculated under section 39, there is appropriated from the great 2
start readiness program reserve fund the amount necessary and 3
available to fully fund those allocations. 4
(3) From the general state school aid fund money allocated 5
under subsection (1), there is allocated an amount not to exceed 6
$600,000.00 for 2024-2025 and an amount not to exceed $350,000.00 7
for 2025-2026 for (2), the department of lifelong education, 8
advancement, and potential shall award a competitive grant to a 9
state public university to continue a longitudinal evaluation of 10
children who have participated in great start readiness programs. 11
(4) Except as otherwise provided in subsection (5), to be 12
eligible for funding under this section, a program must prepare 13
children for success in school through comprehensive part-day 14
programs, school-day programs, GSRP extended programs, GSRP/Head 15
Start school-day blended programs, GSRP/Head Start extended blended 16
programs, or other eligible great start readiness program options 17
that contain all of the following program components, as determined 18
by the department of lifelong education, advancement, and 19
potential: 20
(a) Participation in a collaborative recruitment and 21
enrollment process to ensure that each child is enrolled in the 22
program most appropriate to the child's needs and to maximize the 23
use of federal, state, and local funds. For 2025-2026, as part of 24
this requirement, programs Programs receiving funding under this 25
section must provide current enrollment data, including slots open 26
for enrollment and slots filled, to the intermediate district or 27
consortium of intermediate districts from which funding is received 28
for that program. The enrollment process must ensure that children 29
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in families with lower income and children with other risk factors, 1
as determined by the department of lifelong education, advancement, 2
and potential, are enrolled before children with lesser needs. 3
(b) An age-appropriate educational curriculum that is in 4
compliance with the early childhood standards of quality for birth 5
to kindergarten children adopted by the state board, including, at 6
least, the Connect4Learning curriculum. 7
(c) Nutritional services for all program participants 8
supported by federal, state, and local resources as applicable. 9
(d) Physical and dental health and developmental screening 10
services for all program participants. 11
(e) Referral services for families of program participants to 12
community social service agencies, including mental health 13
services, as appropriate. 14
(f) Active and continuous involvement of the parents or 15
guardians of the program participants. 16
(g) A plan to conduct and report annual great start readiness 17
program evaluations and continuous improvement plans using criteria 18
approved by the department of lifelong education, advancement, and 19
potential. 20
(h) Participation in a school readiness advisory committee 21
convened as a workgroup of the great start collaborative that 22
provides for the involvement of classroom teachers, parents or 23
guardians of program participants, and community, volunteer, and 24
social service agencies and organizations, as appropriate. The 25
advisory committee shall annually review and make recommendations 26
regarding the program components listed in this subsection. The 27
advisory committee also shall make recommendations to the great 28
start collaborative regarding other community services designed to 29
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improve all children's school readiness. 1
(i) The ongoing articulation of the kindergarten and first 2
grade programs offered by the program provider. 3
(j) Participation in this state's great start to quality 4
process with a level of at least enhancing quality level. 5
(5) To help expand access to great start readiness programs, 6
the department of lifelong education, advancement, and potential 7
may waive the requirements under subsections (4) and (8)(c) 8
subsection (4) and a program may be eligible for funding under this 9
section for new or expanding programs if the program demonstrates 10
to the satisfaction of the department of lifelong education, 11
advancement, and potential that the program meets all of the 12
following: 13
(a) Is a licensed group or child care center or is a licensed 14
program. 15
(b) Provides the minimum instructional time as required by the 16
department of lifelong education, advancement, and potential. 17
(c) Participates in this state's quality improvement system at 18
a level determined by the department of lifelong education, 19
advancement, and potential. 20
(d) Implements a professional educator preparation plan, as 21
defined by the department of lifelong education, advancement, and 22
potential, for educators not meeting teacher credentialing 23
standards described in subsection (8). or (9). 24
(e) Uses a developmentally appropriate curriculum, as 25
determined by the department of lifelong education, advancement, 26
and potential. 27
(f) Conducts a developmental screening and referral process, 28
as determined by the department of lifelong education, advancement, 29
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and potential. 1
(g) Commits to participating in program financial review and 2
monitoring, as determined by the department of lifelong education, 3
advancement, and potential. 4
(h) Provides a plan to implement an approved great start 5
readiness program curriculum and meet additional great start 6
readiness program standards, as determined by the department of 7
lifelong education, advancement, and potential. 8
(6) A waiver under subsection (5) may be granted for up to 3 9
years for requirements related to program credentialing and may be 10
granted for up to 2 years for all other requirements, as determined 11
by the department of lifelong education, advancement, and 12
potential. 13
(7) The department of lifelong education, advancement, and 14
potential shall provide a report to the house and senate 15
appropriations subcommittees on school aid, the state budget 16
director, and the house and senate fiscal agencies that summarizes 17
the number and types of exemptions granted under subsection (5) and 18
progress made by programs granted waivers under subsection (5) by 19
September 30 of each fiscal year. It is the intent of the 20
legislature to review the waiver allowability under subsection (5) 21
before the fiscal year ending September 30, 2027. 22
(8) For applications submitted before September 30, 2025, an 23
application for funding under this section must provide for the 24
following, in a form and manner determined by the department of 25
lifelong education, advancement, and potential: 26
(a) Ensure either of the following: 27
(i) That the applicant complies with all program components 28
described in subsection (4). 29
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(ii) That the applicant meets the requirements of a waiver 1
under subsection (5). 2
(b) Except as otherwise provided in this subdivision, ensure 3
that children participating in an eligible great start readiness 4
program for whom the intermediate district is receiving funds under 5
this section are children who live with families with a household 6
income that is equal to or less than 400% of the federal poverty 7
guidelines. If the intermediate district determines that all 8
eligible children are being served and that there are no children 9
on the waiting list who live with families with a household income 10
that is equal to or less than 400% of the federal poverty 11
guidelines, the intermediate district may then enroll children who 12
live with families with a household income that is greater than 13
400% of the federal poverty guidelines. The enrollment process must 14
consider income and risk factors, such that children determined 15
with higher need are enrolled before children with lesser need. For 16
purposes of this subdivision, all age-eligible children served in 17
foster care or who are experiencing homelessness or who have 18
individualized education programs recommending placement in an 19
inclusive preschool setting are considered to live with families 20
with household income equal to or less than 400% of the federal 21
poverty guidelines regardless of actual family income and are 22
prioritized for enrollment within the lowest quintile. The 23
department of lifelong education, advancement, and potential shall 24
publish the household income thresholds under this subdivision in a 25
clear manner on its website and the great start to quality website. 26
(c) Except as provided in subsection (5), ensure that the 27
applicant only uses qualified personnel for this program, as 28
follows: 29
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(i) Teachers possessing proper training. A lead teacher must 1
have a valid Michigan teaching certificate with an early childhood 2
or lower elementary endorsement or a bachelor's or higher degree in 3
child development or early childhood education with specialization 4
in preschool teaching. However, except as otherwise provided in 5
this subparagraph, if an applicant demonstrates to the department 6
of lifelong education, advancement, and potential that it is unable 7
to fully comply with this subparagraph after making reasonable 8
efforts to comply, teachers or paraprofessionals with at least 5 9
years of experience as a paraprofessional in a great start 10
readiness program, Head Start, or licensed child care center 11
classroom who have significant but incomplete training in early 12
childhood education or child development may be used if the 13
applicant provides to the department of lifelong education, 14
advancement, and potential, and the department of lifelong 15
education, advancement, and potential approves, a plan for each 16
teacher to come into compliance with the standards in this 17
subparagraph. Individuals may qualify with at least 3 years of 18
experience and significant training in early childhood education or 19
child development, based on the recommendation of the intermediate 20
district after a classroom observation. A teacher's compliance plan 21
must be completed within 3 years of the date of employment. 22
Progress toward completion of the compliance plan consists of at 23
least 2 courses per calendar year. 24
(ii) Paraprofessionals possessing proper training in early 25
childhood education, including an associate degree in early 26
childhood education or child development or the equivalent, or a 27
child development associate (CDA) credential. However, if an 28
applicant demonstrates to the department of lifelong education, 29
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advancement, and potential that it is unable to fully comply with 1
this subparagraph after making reasonable efforts to comply, the 2
applicant may use paraprofessionals who have completed at least 1 3
course that earns college credit in early childhood education or 4
child development or enroll in a child development associate 5
credential with at least 6 months of verified experience in early 6
education and care, if the applicant provides to the department of 7
lifelong education, advancement, and potential, and the department 8
of lifelong education, advancement, and potential approves, a plan 9
for each paraprofessional to come into compliance with the 10
standards in this subparagraph. A paraprofessional's compliance 11
plan must be completed within 3 years of the date of employment. 12
Progress toward completion of the compliance plan consists of at 13
least 2 courses, 60 clock hours, or an equivalent of training per 14
calendar year. 15
(d) Include a program budget that contains only those costs 16
that are not reimbursed or reimbursable by federal funding, that 17
are clearly and directly attributable to the great start readiness 18
program, and that would not be incurred if the program were not 19
being offered. Eligible costs include transportation costs. The 20
program budget must indicate the extent to which these funds will 21
supplement other federal, state, local, or private funds. An 22
applicant shall not use funds received under this section to 23
supplant any federal funds received by the applicant to serve 24
children eligible for a federally funded preschool program that has 25
the capacity to serve those children. 26
(8) (9) Beginning in 2025-2026, applications Applications for 27
funding under this section must be submitted to the department of 28
lifelong education, advancement, and potential in a form and manner 29
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determined by the department of lifelong education, advancement, 1
and potential. The application must demonstrate, at a minimum, 2
compliance with program requirements described in subsection (4) or 3
(5) and must ensure that recipients will only utilize qualified 4
personnel, as determined by the department of lifelong education, 5
advancement, and potential, for eligible great start readiness 6
program options. 7
(10) For a grant recipient that enrolls pupils in a school-day 8
program or GSRP extended program funded under this section, each 9
child enrolled in the school-day program or GSRP extended program 10
is counted as described in section 39 for purposes of determining 11
the amount of the grant award. This subsection does not apply after 12
September 30, 2025. 13
(9) (11) For a grant recipient that enrolls pupils in an 14
eligible great start readiness program option that blends GSRP and 15
Head Start programming, the grant recipient shall ensure that all 16
Head Start and GSRP policies and regulations are applied to the 17
blended slots, with adherence to the highest standard from either 18
program, to the extent allowable under federal law. A grant 19
recipient may request a waiver from the department of lifelong 20
education, advancement, and potential to align GSRP policies and 21
regulations with Head Start national standards for quality, 22
including ratios, and the department of lifelong education, 23
advancement, and potential may approve the waiver. Not later than 24
March 1 of each year, the department of lifelong education, 25
advancement, and potential will report to the legislature and post 26
on a publicly available website a list by intermediate district or 27
consortium with the number and type of each waiver requested and 28
approved. 29
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(10) (12) To help expand access to great start readiness 1
programs, the department of lifelong education, advancement, and 2
potential may allow great start readiness programs to implement 3
Head Start national performance standards for quality as an 4
alternative to great start readiness program policies and 5
regulations if the great start readiness program demonstrates to 6
the satisfaction of the department of lifelong education, 7
advancement, and potential that the great start readiness program 8
is meeting the requirements of the Head Start national performance 9
standards. 10
(11) (13) Beginning in 2025-2026, an An intermediate district 11
or consortia of intermediate districts receiving funding under this 12
section must publish, on an easily accessible website, a data 13
dashboard containing the number of allocations requested from the 14
state, a list of programs offering great start readiness programs 15
in their boundaries, and current enrollment data for each 16
subrecipient, including total slots open for enrollment, slots 17
filled, and waitlist information, if applicable. A link to this 18
website must be provided to families on waitlists for any great 19
start readiness program in their boundaries. 20
(12) (14) An intermediate district or consortium of 21
intermediate districts receiving a grant under this section shall 22
designate an early childhood coordinator, and may provide services 23
directly or may contract with 1 or more districts or public or 24
private for-profit or nonprofit providers that meet all 25
requirements of subsection (4) , (8), or (9), or (8), as 26
applicable. 27
(13) (15) An intermediate district or consortium of 28
intermediate districts may retain for administrative services 29
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provided by the intermediate district or consortium of intermediate 1
districts an amount not to exceed 4% of the grant amount. Expenses 2
incurred by subrecipients engaged by the intermediate district or 3
consortium of intermediate districts for directly running portions 4
of the program are considered program costs or a contracted program 5
fee for service. Subrecipients operating early childhood programs 6
may include indirect costs, not to exceed the federal de minimis. 7
(14) (16) An intermediate district or consortium of 8
intermediate districts may expend not more than 2% of the total 9
grant amount for outreach, recruiting, and public awareness of the 10
program, if the intermediate district or consortium of intermediate 11
districts also participates in related statewide marketing and 12
outreach efforts. 13
(17) Each grant recipient shall enroll children identified 14
under subsection (8)(b) according to how far the child's household 15
income is below 400% of the federal poverty guidelines by ranking 16
each applicant child's household income from lowest to highest and 17
dividing the applicant children into quintiles based on how far the 18
child's household income is below 400% of the federal poverty 19
guidelines, and then enrolling children in the quintile with the 20
lowest household income before enrolling children in the quintile 21
with the next lowest household income until slots are completely 22
filled. If the grant recipient determines that all eligible 23
children are being served and that there are no children on the 24
waiting list who live with families with a household income that is 25
equal to or less than 400% of the federal poverty guidelines, the 26
grant recipient may then enroll children who live with families 27
with a household income that is greater than 400% of the federal 28
poverty guidelines. The enrollment process must consider income and 29
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risk factors, such that children determined with higher need are 1
enrolled before children with lesser need. For purposes of this 2
subsection, all age-eligible children served in foster care or who 3
are experiencing homelessness or who have individualized education 4
programs recommending placement in an inclusive preschool setting 5
are considered to live with families with household income equal to 6
or less than 400% of the federal poverty guidelines regardless of 7
actual family income and are prioritized for enrollment within the 8
lowest quintile. This subsection does not apply after September 30, 9
2025. 10
(15) (18) An intermediate district or consortium of 11
intermediate districts receiving a grant under this section shall 12
allow parents of eligible children who are residents of the 13
intermediate district or within the consortium to choose a program 14
operated by or contracted with another intermediate district or 15
consortium of intermediate districts and shall enter into a written 16
agreement regarding payment, in a manner prescribed by the 17
department of lifelong education, advancement, and potential. 18
(16) (19) An intermediate district or consortium of 19
intermediate districts receiving a grant under this section shall 20
conduct a local process to contract with interested and eligible 21
public and private for-profit and nonprofit community-based 22
providers that meet all requirements of subsection (4) for at least 23
30% of its total allocation. For 2024-2025, for the purposes of 24
this 30% allocation, an intermediate district or consortium of 25
intermediate districts may count children served by a Head Start 26
grantee or delegate in a GSRP/Head Start school-day blended 27
program, GSRP/Head Start extended blended program, GSRP extended 28
program, and great start readiness school-day program. Children 29
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served in a program funded only through only Head Start are not 1
counted toward this 30% allocation. Beginning in 2025-2026, the The 2
department of lifelong education, advancement, and potential shall 3
provide guidance to intermediate districts and consortia of 4
intermediate districts on counting children served by Head Start 5
programming for the purposes of this 30% allocation. For 2024-2025, 6
an intermediate district or consortium shall report to the 7
department of lifelong education, advancement, and potential, in a 8
manner prescribed by the department of lifelong education, 9
advancement, and potential, a detailed list of community-based 10
providers by provider type, including private for-profit, private 11
nonprofit, community college or university, Head Start grantee or 12
delegate, and district or intermediate district, and the number and 13
proportion of its total allocation allocated to each provider as 14
subrecipient. Beginning in 2025-2026, an An intermediate district 15
or consortium shall report to the department of lifelong education, 16
advancement, and potential, in a manner prescribed by the 17
department of lifelong education, advancement, and potential, 18
information necessary for the department of lifelong education, 19
advancement, and potential to determine the intermediate district's 20
or consortium of intermediate districts' compliance with this 21
subsection. If the intermediate district or consortium is not able 22
to contract for at least 30% of its total allocation, the 23
intermediate district or consortium shall notify the department of 24
lifelong education, advancement, and potential and, if the 25
department of lifelong education, advancement, and potential 26
verifies that the intermediate district or consortium attempted to 27
contract for at least 30% of its total allocation and was not able 28
to do so, the intermediate district or consortium may retain and 29
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use all of its allocation as provided under this section. To be 1
able to use this exemption, the intermediate district or consortium 2
shall demonstrate to the department of lifelong education, 3
advancement, and potential that the intermediate district or 4
consortium increased the percentage of its total allocation for 5
which it contracts with a community-based provider and the 6
intermediate district or consortium shall submit evidence 7
satisfactory to the department of lifelong education, advancement, 8
and potential, and the department of lifelong education, 9
advancement, and potential must be able to verify this evidence, 10
demonstrating that the intermediate district or consortium took 11
measures to contract for at least 30% of its total allocation as 12
required under this subsection, including, but not limited to, at 13
least all of the following measures: 14
(a) The intermediate district or consortium notified each 15
nonparticipating licensed child care center located in the service 16
area of the intermediate district or consortium regarding the 17
center's eligibility to participate, in a manner prescribed by the 18
department of lifelong education, advancement, and potential. 19
(b) The intermediate district or consortium provided to each 20
nonparticipating licensed child care center located in the service 21
area of the intermediate district or consortium information 22
regarding great start readiness program requirements and a 23
description of the application and selection process for community-24
based providers. 25
(c) The intermediate district or consortium provided to the 26
public and to participating families a list of community-based 27
great start readiness program subrecipients with a great start to 28
quality level of at least enhancing quality level. 29
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(17) (20) If an intermediate district or consortium of 1
intermediate districts receiving a grant under this section fails 2
to submit satisfactory evidence to demonstrate its effort to 3
contract for at least 30% of its total allocation, as required 4
under subsection (19), (16), the department of lifelong education, 5
advancement, and potential may reduce the allocation to the 6
intermediate district or consortium by a percentage equal to the 7
difference between the percentage of an intermediate district's or 8
consortium's total allocation awarded to community-based providers 9
and 30% of its total allocation. 10
(18) (21) To assist intermediate districts and consortia in 11
complying with the requirement to contract with community-based 12
providers, for at least 30% of their total allocation, the 13
department of lifelong education, advancement, and potential shall 14
do all of the following: 15
(a) Ensure that a great start resource center or the 16
department of lifelong education, advancement, and potential 17
provides each intermediate district or consortium receiving a grant 18
under this section with the contact information for each licensed 19
child care center located in the service area of the intermediate 20
district or consortium by March 1 of each year. 21
(b) Provide, or ensure that an organization with which the 22
department of lifelong education, advancement, and potential 23
contracts provides, a community-based provider with a validated 24
great start to quality rating within 90 days of the provider's 25
having submitted a request and self-assessment. This subdivision 26
does not apply after September 30, 2025. 27
(b) (c) Ensure that all intermediate district, district, 28
community college or university, Head Start grantee or delegate, 29
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private for-profit, and private nonprofit providers are subject to 1
a single great start to quality continuous quality improvement 2
system. The continuous quality improvement system must ensure that 3
regulators process all prospective providers at the same pace on a 4
first-come, first-served basis and must not allow 1 type of 5
provider to receive a great start to quality level ahead of any 6
other type of provider. 7
(c) (d) By not later than March 1 of each year, compile the 8
results of the information reported by each intermediate district 9
or consortium under subsection (19) (16) and report to the 10
legislature and post on a publicly available website a list by 11
intermediate district or consortium with the number and percentage 12
of each intermediate district's or consortium's total allocation 13
allocated to community-based providers by provider type, including 14
private for-profit, private nonprofit, community college or 15
university, Head Start grantee or delegate, and district or 16
intermediate district. 17
(d) (e) Allow intermediate districts and consortia and 18
eligible community-based providers to utilize materials and 19
supplies purchased for great start readiness programs within their 20
facilities for other early care and education activities, in the 21
following order of priority: 22
(i) Early care and education activities under a federal award. 23
(ii) Early care and education activities under other state 24
awards. 25
(iii) Early care and education activities under local or 26
regional awards. 27
(19) (22) A recipient of funds under this section shall report 28
to the center in a form and manner prescribed by the center the 29
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information necessary to derive the number of children 1
participating in the program, the number of eligible children not 2
participating in the program and on a waitlist, and the total 3
number of children participating in the program by various 4
demographic groups and eligibility factors necessary to analyze 5
equitable and priority access to services for the purposes of 6
subsection (3). 7
(20) (23) As used in this section: 8
(a) "Child care center" means that term as defined in section 9
1 of 1973 PA 116, MCL 722.111. 10
(b) "Eligible great start readiness program options" means a 11
program option that operates on a school-day, part-day, or extended 12
schedule length, as determined by the department of lifelong 13
education, advancement, and potential. The department of lifelong 14
education, advancement, and potential must maintain and publish on 15
its website requirements for each eligible schedule length, 16
including the minimum day length, the minimum number of days per 17
week, and the minimum number of weeks per year. These programs may 18
be blended with Head Start programs, if allowable by federal rules 19
and regulations. 20
(c) "Federal poverty guidelines" means the guidelines 21
published annually in the Federal Register by the United States 22
Department of Health and Human Services under its authority to 23
revise the poverty line under 42 USC 9902. 24
(d) "GSRP extended program" means a program that operates for 25
at least the same length of day as a district's first grade program 26
for a minimum of 5 days per week, 36 weeks per year. 27
(e) "GSRP/Head Start extended blended program" means a program 28
funded under this section and a Head Start program that are 29
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combined for an extended program. 1
(f) "GSRP/Head Start school-day blended program" means a part-2
day program funded under this section and a Head Start program, 3
which are combined for a school-day program. 4
(g) "Licensed child care center" means a child care center 5
that has been issued a license under 1973 PA 116, MCL 722.111 to 6
722.128, to operate a child care center. 7
(h) "Part-day program" means a program that operates at least 8
4 days per week, 30 weeks per year, for at least 3 hours of 9
teacher-child contact time per day but for fewer hours of teacher-10
child contact time per day than a school-day program. 11
(i) "School-day program" means a program that operates for at 12
least the same length of day as a district's first grade program 13
for a minimum of 4 days per week, 30 weeks per year. A classroom 14
that offers a school-day program must enroll all children for the 15
school day to be considered a school-day program. 16
(21) (24) From the state school aid fund money allocated in 17
subsection (1), there is allocated for 2024-2025 and 2025-2026 18
2026-2027 an amount not to exceed $10,000,000.00 and, from the 19
great start readiness program reserve fund money allocated in 20
subsection (1), there is allocated for 2024-2025 and 2025-2026 21
2026-2027 an amount not to exceed $18,000,000.00 for reimbursement 22
of transportation costs for children attending great start 23
readiness programs funded under this section. To receive 24
reimbursement under this subsection, by not later than November 1 25
of each year, a program funded under this section that provides 26
transportation shall submit to the intermediate district that is 27
the fiscal agent for the program a projected transportation budget. 28
The amount of the reimbursement for transportation under this 29
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subsection is no more than the projected transportation budget or 1
$500.00 multiplied by the number of children funded for the program 2
under this section. If the amount allocated under this subsection 3
is insufficient to fully reimburse the transportation costs for all 4
programs that provide transportation and submit the required 5
information, the department of lifelong education, advancement, and 6
potential shall prorate the reimbursement in an equal amount per 7
child funded. The department of lifelong education, advancement, 8
and potential shall make payments to the intermediate district that 9
is the fiscal agent for each program, and the intermediate district 10
shall then reimburse the program provider for transportation costs 11
as prescribed under this subsection. 12
(22) (25) For 2024-2025, subject to, and from the funds 13
allocated under, subsection (24), the department of lifelong 14
education, advancement, and potential shall reimburse a program for 15
transportation costs related to parent- or guardian-accompanied 16
transportation provided by transportation service companies, buses, 17
or other public transportation services. Beginning in 2025-2026, 18
subject Subject to, and from the funds allocated under, subsection 19
(24), (21), the department of lifelong education, advancement, and 20
potential shall allow programs to utilize those funds for costs 21
related to parent- or guardian-provided transportation and for 22
costs related to parent- or guardian-accompanied transportation 23
provided by transportation service companies, buses, or other 24
public transportation services. For payments related to parent- or 25
guardian-provided transportation, the department of lifelong 26
education, advancement, and potential shall develop parameters to 27
ensure dollars are utilized in a way that improves access to 28
eligible great start readiness program options for low-income and 29
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geographically isolated families. To be eligible for reimbursement 1
under this subsection in 2024-2025, and to utilize funding under 2
this subsection, in 2025-2026, a program must submit to the 3
intermediate district or consortia of intermediate districts all of 4
the following: 5
(a) The names of families provided with transportation support 6
along with a documented reason for the need for transportation 7
support and the type of transportation provided. 8
(b) Financial documentation of actual transportation costs 9
incurred by the program, including, but not limited to, receipts 10
and mileage reports, as determined by the department of lifelong 11
education, advancement, and potential. 12
(c) Any other documentation or information determined 13
necessary by the department of lifelong education, advancement, and 14
potential. 15
(23) (26) The department of lifelong education, advancement, 16
and potential shall implement a process to review and approve age-17
appropriate comprehensive classroom level quality assessments for 18
GSRP grantees that support the early childhood standards of quality 19
for birth to kindergarten children adopted by the state board. The 20
department of lifelong education, advancement, and potential shall 21
make available to intermediate districts at least 2 classroom level 22
quality assessments that have been approved by the department of 23
lifelong education, advancement, and potential. 24
(24) (27) An intermediate district that is a GSRP grantee may 25
approve the use of a supplemental curriculum that aligns with and 26
enhances the age-appropriate educational curriculum in the 27
classroom. If the department of lifelong education, advancement, 28
and potential objects to the use of a supplemental curriculum 29
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approved by an intermediate district, the director of the 1
department of lifelong education, advancement, and potential shall 2
establish a review committee independent of the department of 3
lifelong education, advancement, and potential. The review 4
committee shall meet within 60 days of the department of lifelong 5
education, advancement, and potential registering its objection in 6
writing and provide a final determination on the validity of the 7
objection within 60 days of the review committee's first meeting. 8
(25) (28) The department of lifelong education, advancement, 9
and potential shall implement a process to evaluate and approve 10
age-appropriate educational curricula that are in compliance with 11
the early childhood standards of quality for birth to kindergarten 12
children adopted by the state board. 13
(26) (29) From the state school aid fund money allocated under 14
subsection (1), there is allocated for 2024-2025 and 2025-2026 15
2026-2027 an amount not to exceed $2,000,000.00 for payments to 16
intermediate districts or consortia of intermediate districts for 17
professional development and training materials for educators in 18
programs implementing new curricula or child assessment tools 19
approved for use in the great start readiness program. Curricula 20
and child assessment tools purchased with funds received under this 21
subsection must be in compliance with early childhood standards of 22
quality for birth to kindergarten children. 23
(27) (30) A great start readiness program, a GSRP extended 24
program, a GSRP/Head Start school-day blended program, a GSRP/Head 25
Start extended blended program, or other eligible great start 26
readiness programs funded under this section are permitted to 27
utilize AmeriCorps Pre-K Reading Corps members in classrooms 28
implementing research-based early literacy intervention strategies. 29
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(28) (31) In addition to the allocation From the state school 1
aid fund money allocated under subsection (1), from the state 2
school aid fund money appropriated under section 11, there is 3
allocated an amount not to exceed $25,000,000.00 for 2024-2025 and 4
an amount not to exceed $10,000,000.00 for 2025-2026 2026-2027 only 5
for classroom start up grants to intermediate districts and 6
consortia of intermediate districts for new or expanding great 7
start readiness classrooms. All of the following apply to funding 8
allocated under this subsection: 9
(a) To receive funding under this subsection, intermediate 10
districts and consortia of intermediate districts must apply for 11
the funding in a form and manner prescribed by the department of 12
lifelong education, advancement, and potential. 13
(b) The department of lifelong education, advancement, and 14
potential shall pay an amount not to exceed $50,000.00 for each new 15
or expanded classroom. If funding is insufficient to fully fund all 16
eligible applicants, the department of lifelong education, 17
advancement, and potential must prorate the per-classroom amount on 18
an equal basis. If the allocation is not fully paid in the current 19
fiscal year, the department of lifelong education, advancement, and 20
potential may award any remaining funding from fiscal year 2024-21
2025 during fiscal year 2025-2026, and may award any remaining 22
funding from fiscal year 2025-2026 during fiscal year 2026-2027 for 23
each new or expanded classroom at an equal amount per classroom, 24
based on remaining available funds, not to exceed $50,000.00 per 25
classroom. 26
(c) Funds received under this subsection by intermediate 27
districts and consortia of intermediate districts must be paid in 28
full to the entity operating the classroom and may be used for 1 or 29
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more of the following purposes: 1
(i) Costs associated with attracting, recruiting, retaining, 2
and licensing required classroom education personnel to staff new 3
or expanded classrooms. 4
(ii) Supporting facility improvements or purchasing facility 5
space or modular classroom units necessary to provide a safe, high-6
quality learning environment for children in each new or expanded 7
classroom, and for costs to become a licensed facility such as 8
architectural drawings, permits, and other prelicensure inspection 9
fees. 10
(iii) Outreach material necessary for public awareness that the 11
great start readiness program has openings in the area and for 12
costs associated with enrolling eligible children in new or 13
expanded classrooms. 14
(iv) Supporting costs in each new or expanded classroom 15
associated with improving a provider's great start to quality 16
level. 17
(d) Recipients of funds under this subsection must demonstrate 18
that instructional staff have completed, or are in the process of 19
completing, professional learning in the science of reading. Grant 20
funds may be used to support this professional learning and are 21
intended to ensure new classrooms are well equipped to implement 22
evidence-based early literacy strategies. 23
(e) The funds allocated under this subsection for 2024-2025 24
are a work project appropriation, and any unexpended funds for 25
2024-2025 do not lapse to the state school aid fund and are carried 26
forward into 2025-2026. The purpose of the work project is to 27
continue support for new or expanded great start readiness 28
classrooms. The estimated completion date of the work project is 29
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September 30, 2026. 1
(f) The funds allocated under this subsection for 2025-2026 2
are a work project appropriation, and any unexpended funds for 3
2025-2026 do not lapse to the state school aid fund and are carried 4
forward into 2026-2027. The purpose of the work project is to 5
continue support for new or expanded great start readiness 6
classrooms. The estimated completion date of the work project is 7
September 30, 2027. 8
(e) (g) Notwithstanding section 17b, the department of 9
lifelong education, advancement, and potential shall make payments 10
under this subsection on a schedule determined by the department of 11
lifelong education, advancement, and potential. 12
(32) In addition to the funds allocated in subsection (1), 13
there is allocated from the general fund money appropriated under 14
section 11 for 2024-2025 only an amount not to exceed $1,950,000.00 15
for an intermediate district or a consortium of intermediate 16
districts to partner with the department of lifelong education, 17
advancement, and potential and community-based organizations to 18
continue implementing statewide outreach and enrollment campaign 19
activities to raise awareness about the availability of services 20
through the great start readiness program, and to promote 21
enrollment. 22
(33) The funds allocated under subsection (32) for 2024-2025 23
are a work project appropriation, and any unexpended funds for 24
2024-2025 are carried forward into 2025-2026. The purpose of the 25
work project is to raise awareness of and participation in great 26
start readiness programming. The estimated completion date of the 27
work project is September 30, 2027. 28
(34) Notwithstanding section 17b, the department of lifelong 29
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education, advancement, and potential shall make payments under 1
subsection (32) on a schedule determined by the department of 2
lifelong education, advancement, and potential. 3
Sec. 32n. (1) From the state school aid fund money 4
appropriated in section 11, there is allocated for 2024-2025 2026-5
2027 only an amount not to exceed $79,000,000.00, $50,000,000.00, 6
and from the state school aid pupil support reserve fund money 7
appropriated in section 11, there is allocated for 2025-2026 only 8
an amount not to exceed $75,000,000.00 and for 2026-2027 only an 9
amount not to exceed $85,000,000.00 to Clinton County RESA to 10
collaborate with the department of lifelong education, advancement, 11
and potential, for the purposes of this section. It is the intent 12
of the legislature that, for 2026-2027, the allocation from the 13
state school aid pupil support reserve fund money appropriated in 14
section 11 for the purposes described in this section will be 15
$85,000,000.00. It is the intent of the legislature that, for 2027-16
2028, the allocation from the state school aid pupil support 17
reserve fund money appropriated in section 11 for the purposes 18
described in this section will be $100,000,000.00. 19
(2) From the state school aid fund money allocated in 20
subsection (1), there is allocated for 2024-2025 2026-2027 only an 21
amount not to exceed $57,000,000.00, $50,000,000.00, and from the 22
state school aid pupil support reserve fund money allocated in 23
subsection (1), there is allocated for 2025-2026 2026-2027 only an 24
amount not to exceed $75,000,000.00 $85,000,000.00 for a grant 25
program for eligible applicants to expand access to quality, 26
affordable programming before and after the school day or during 27
the summer for young people. The department of lifelong education, 28
advancement, and potential shall establish competitive grant 29
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criteria for the program described in this subsection. To be 1
eligible for a grant under this subsection, section, the applicant 2
must meet, at a minimum, all of the following criteria: 3
(a) Serve children in any of grades K to 12. 4
(b) Be a community-based organization that is exempt from 5
federal income tax under section 501(c)(3) of the internal revenue 6
code, 26 USC 501, an institution of higher education, a public 7
library, a local government, or an intermediate district. 8
(c) Provide before-school, after-school, before-and-after-9
school, or summer school programming to children described in 10
subdivision (a). These programs must be used to support expanded 11
learning opportunities, including, but not limited to, mentoring, 12
leadership, community engagement, agriculture, visual and 13
performing arts, literacy, science, technology, engineering, 14
mathematics, health and wellness, recreation, financial literacy, 15
physical fitness, career and college exploration, youth voice, 21st 16
century skills, conflict resolution, and social engagement 17
programming. 18
(d) Address not fewer than 3 measurable goals, including, but 19
not limited to, improved school attendance, academic outcomes, 20
improved attitudes toward school, improved positive behaviors, 21
skill development and retention, higher education aspirations, and 22
improved family engagement and include activities linked to 23
research or quality practices. 24
(e) Be 1 of the following: 25
(i) A licensed child care organization. 26
(ii) An entity that has an active application to be a licensed 27
child care organization. 28
(iii) An exempt entity. 29
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(f) For entities meeting eligibility requirements under 1
subdivision (e)(ii) and (iii), demonstrate in a form and manner 2
determined by the department that all of the following are in place 3
for staff working with youth: 4
(i) Background checks through the Central Registry Clearance 5
and the Internet Criminal History Access Tool. 6
(ii) First aid and cardiopulmonary resuscitation (CPR) 7
training. 8
(iii) Health and Safety Training Courses for Child Care 9
Providers, Modules A, B, and C. 10
(3) The department of lifelong education, advancement, and 11
potential shall establish a competitive grant process for awarding 12
funding under subsection (2). The department of lifelong education, 13
advancement, and potential shall develop the form and manner for 14
applying for the grants. The application must include a request for 15
information on the applicant's outreach to children, youth, and 16
families who are eligible for free or reduced-price meals under the 17
Richard B. Russell national school lunch act, 42 USC 1751 to 1769j. 18
The application must be open for not less than 30 calendar days. 19
Except as otherwise provided in this subsection, at At least 30 20
days before the application is opened, the department of lifelong 21
education, advancement, and potential must publish on its public 22
website the criteria that will be used in evaluating the 23
application that must include, but are not limited to, priorities 24
under subsection (5). For 2025-2026 only, the department of 25
lifelong education, advancement, and potential, is not required to 26
publish the evaluation criteria at least 30 days before the 27
application is opened. 28
(4) Subject to subsection (9), (8), in determining award 29
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amounts under subsection (2), the department of lifelong education, 1
advancement, and potential shall, to the extent practicable, ensure 2
that eligible entities in all geographic regions of this state are 3
represented in the distribution of grant funding under subsection 4
(2). 5
(5) Subject to subsection (9), (8), the department of lifelong 6
education, advancement, and potential shall prioritize the 7
distribution of grant funding under subsection (2) based on, at a 8
minimum, the following: 9
(a) An applicant's demonstrated need. 10
(b) The percentage of low-income families in the geographic 11
area being served. Prioritization must be determined by the average 12
percentage of pupils in the district who are eligible for free and 13
reduced-priced meals as determined under the Richard B. Russell 14
national school lunch act, 42 USC 1751 to 1769j, where eligible 15
entities will provide before-and-after-school or summer school 16
programs. 17
(c) Whether the application provides services for the full 18
school year. 19
(d) The applicant's track record for providing quality, 20
affordable before-and-after-school or summer school services. 21
(e) Whether an applicant serving children in any of grades K 22
to 8 is a licensed child care organization, is an entity that has 23
an active application to be a licensed child care organization, or 24
has implemented the Michigan Out-of-School Time Standards of 25
Quality if the applicant is an exempt entity and, beginning in 26
2025-2026, serves at least 15 school-age youth at a single location 27
in grades K to 12. 28
(6) Subject to subsection (7), an An eligible entity that 29
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receives grant funding under subsection (2) shall use the funding 1
only to provide before-school, after-school, before-and-after-2
school, or summer school programming to children described in 3
subsection (2)(a). The programming offered under subsection (2) 4
must meet all of the following: 5
(a) For programming that is offered by a licensed child care 6
organization, be provided to children and youth in a manner in 7
which the children are physically present at the building or 8
location for which the licensed child care organization received 9
its license under 1973 PA 116, MCL 722.111 to 722.128, or, for 10
programming that is offered by an exempt entity serving grades K to 11
12, be provided to children and youth in a manner in which the 12
children and youth are physically present at a building or location 13
designated by the exempt entity. 14
(b) Provide educational programming in core subject areas, 15
including, but not limited to, mathematics, reading, and science. 16
(c) Provide data to evaluate the program in a form and manner 17
as prescribed by the department of lifelong education, advancement, 18
and potential. 19
(7) For 2024-2025 only, and subject to subsections (4) and 20
(5), up to 2% of funding allocated under subsection (2) must be 21
allocated to a nonprofit entity with experience serving youth-22
serving organizations to provide start-up grants and capacity 23
building, professional development, and technical assistance for 24
implementation of high-quality, evidence-based out-of-school time 25
learning opportunities. 26
(7) (8) Beginning in 2025-2026, all All of the following apply 27
to funding allocated under this section: 28
(a) An amount not to exceed 0.25% of the funding allocated 29
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under subsection (2) or $250,000.00, whichever is greater, may be 1
retained by Clinton County RESA for administrative costs. 2
(b) An amount not to exceed $500,000.00 of the funding 3
allocated under subsection (2) must be allocated by Clinton County 4
RESA, as directed by the department of lifelong education, 5
advancement, and potential, and in collaboration with the center 6
and the Michigan afterschool partnership as needed, to provide 7
statewide evaluation activities of eligible youth served, their 8
families, and programs funded under this section. This evaluation 9
must allow for a comparative analysis between program youth and 10
their peers in grades K to 12. 11
(c) An amount not to exceed 1.5% of the funding allocated 12
under subsection (2) must be allocated by Clinton County RESA, as 13
directed by the department of lifelong education, advancement, and 14
potential, and in collaboration with the Michigan afterschool 15
partnership, to provide statewide out-of-school time activities and 16
supports including, but not limited to, capacity building 17
initiatives, professional development, and technical assistance to 18
increase the likelihood for implementation of high quality, 19
evidence-based, out-of-school time learning opportunities by 20
eligible entities under subsections (4) and (5). 21
(8) (9) The department of lifelong education, advancement, and 22
potential shall award not less than 60% of the funding under 23
subsection (2) to community-based organizations. 24
(9) (10) Notwithstanding section 17b, the department of 25
lifelong education, advancement, and potential shall make payments 26
under this section in full upon grant award. Grantees that do not 27
comply with reporting requirements, fail to provide the services 28
proposed in their grant application, or close during the grant 29
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period may be required to repay the funding they received under 1
this section to the department of lifelong education, advancement, 2
and potential. 3
(10) (11) The department of lifelong education, advancement, 4
and potential, in collaboration with the Michigan Afterschool 5
Partnership, shall convene an advisory committee to review the 6
program components listed within this section and make 7
recommendations to the department of lifelong education, 8
advancement, and potential for changes on the program described in 9
this section. The advisory committee shall meet at a schedule set 10
by the department of lifelong education, advancement, and 11
potential, or at least quarterly. The advisory committee shall 12
provide for the involvement of, but not limited to, community-based 13
organizations, regional intermediaries, district administrators, 14
youth, parents, and representatives from the business and 15
philanthropic communities, as appropriate. 16
(12) From the state school aid fund money allocated in 17
subsection (1), Clinton County RESA shall allocate $22,000,000.00 18
in 2024-2025 only to recipients under this subsection as follows: 19
(a) $4,000,000.00 to support the efforts of FFA. 20
(b) $4,000,000.00 to the Boys and Girls Club of Southeastern 21
Michigan in Detroit to expand programming. Programming expansion 22
includes, but is not limited to, construction or remodeling of 23
facilities to allow for new or extended programs. 24
(c) $4,000,000.00 to the HYPE Athletics Center in Dearborn 25
Heights to provide programming that may include, but is not limited 26
to, science, technology, engineering, arts, and mathematics (STEAM) 27
programs; literacy and reading programs; after-school programs; 28
youth fitness and athletic programs; and mental health and 29
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behavioral health services. 1
(d) $1,500,000.00 to Brilliant Detroit to support delivery of 2
high-dosage neighborhood-based tutoring and direct noninstructional 3
services for at-risk pupils who are 3 to 12 years of age. Funding 4
under this subdivision is intended to ensure that pupils are 5
proficient in English language arts by the end of grade 3 and 6
proficient in mathematics by the end of grade 8, that all 7
participants are kindergarten ready, and that pupils are prepared 8
to attend school regularly. As used in this subdivision, "at-risk 9
pupil" means that term as defined in section 31a. 10
(e) $1,200,000.00 to the State Alliance of Michigan YMCAs to 11
provide students in grades 6 to 12 with hands-on civics and model-12
government programs that offer statewide engagement with peers 13
across this state for the purpose of expanding those students' 14
opportunities to improve their social studies knowledge, thinking 15
skills, and intellectual processes and dispositions required for 16
active engagement in fulfilling responsibilities of civic 17
participation. 18
(f) $1,000,000.00 to the Downtown Boxing Gym in Detroit to 19
expand programming. Programming expansion includes, but is not 20
limited to, construction or remodeling of facilities to allow for 21
new or extended programs. 22
(g) $1,000,000.00 to support the operations of the Flint 23
Center for Educational Excellence. 24
(h) $800,000.00 to the Detroit Opera for educational 25
programming for grades pre-K to 12, including field trips, summer 26
camps, and other learning opportunities. The funds allocated under 27
this subdivision are a work project appropriation, and any 28
unexpended funds for 2024-2025 are carried forward into 2025-2026. 29
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The purpose of the work project is to support the Detroit Opera 1
educational programming as described in this subdivision. The 2
estimated completion date of the work project is September 30, 3
2028. 4
(i) $500,000.00 to Special Olympics Michigan, a nonprofit 5
organization organized under the laws of this state that is exempt 6
from federal income tax under section 501(c)(3) of the internal 7
revenue code of 1986, 26 USC 501, that has a mission statement to 8
provide year-round sports training and athletic competition for 9
children and adults with intellectual disabilities. Funding under 10
this subdivision must be used by the organization to expand the 11
organization's programming. 12
(j) $500,000.00 to the Horatio Williams Foundation to support 13
efforts to provide college preparation services, math leagues, 14
sports programming, and literacy services in Detroit. 15
(k) $500,000.00 to Friends of the Children, a nonprofit 16
organization that employs salaried professional mentors who support 17
youth and their families from grades K to 12. The salaried 18
professional mentorship program in this subdivision must employ a 19
2-generational approach to supporting youth in and outside of the 20
classroom, particularly in reading and math comprehension; support 21
students and their families by connecting them to concrete supports 22
like education and employment pathways, housing, utility 23
assistance, and food security; and be located in a city with a 24
population greater than 600,000 in a county with a population 25
greater than 1,500,000 according to the most recent federal 26
decennial census. 27
(l) $500,000.00 to the Detroit Police Athletic League to 28
support operations and programming including, but not limited to, 29
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athletic programs and youth enrichment programs. 1
(m) $500,000.00 to the Detroit Science Center, a nonprofit 2
organization that is tax-exempt under section 501(c)(3) of the 3
internal revenue code of 1986, 26 USC 501, and located in a city 4
with a population greater than 600,000 in a county with a 5
population greater than 1,700,000 according to the most recent 6
federal decennial census. Funds under this subdivision must be used 7
by the nonprofit organization to expand the nonprofit 8
organization's mission of providing opportunities for students to 9
discover, explore, and appreciate science, technology, engineering, 10
and mathematics in a creative, dynamic learning environment. 11
(n) $2,000,000.00 to buildOn Detroit to expand the Service 12
Learning Program for high school students. 13
(13) For 2024-2025 only, recipients of grants under subsection 14
(12) may not apply for funding under subsection (2). 15
(14) Funds allocated under subsection (12) for 2024-2025 are a 16
work project appropriation, and any unexpended funds for 2024-2025 17
are carried forward into 2025-2026. The purpose of the work project 18
is to provide additional support to out-of-school time programs. 19
The estimated completion date of the work project is September 30, 20
2026. 21
(11) Subject to subsection (2), the department of lifelong 22
education, advancement, and potential shall establish and implement 23
a multi-tiered grant funding structure within its competitive grant 24
process to account for statewide or regional grant applications, as 25
well as midsize grants serving 6 to 14 program sites and smaller 26
grants serving 1 to 5 program sites. 27
(12) (15) As used in this section: 28
(a) "An entity that has an active application to be a licensed 29
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child care organization" means an entity that has an active 1
application to be a licensed child care organization under 1973 PA 2
116, MCL 722.111 to 722.128, and will be a licensed child care 3
organization before the entity provides services for which a child 4
care organization is required to be licensed under 1973 PA 116, MCL 5
722.111 to 722.128. 6
(b) "Child care organization" means that term as defined in 7
section 1 of 1973 PA 116, MCL 722.111. 8
(c) "Exempt entity" means an entity described in section 9
1(1)(i)(i) to (v) of 1973 PA 116, MCL 722.111. 10
(d) "Licensed child care organization" means a child care 11
organization that has been issued a license under 1973 PA 116, MCL 12
722.111 to 722.128, to operate a child care organization. 13
(e) "School-age" means a child who is eligible to attend a 14
grade of kindergarten or higher, but is less than 13 years of age. 15
A child is considered to be school age on the first day of the 16
school year in which the child is eligible under section 1 of 1973 17
PA 116, MCL 722.111. 18
(f) "Statewide or regional grant" means a grant to 2 or more 19
entities, community-based organizations, statewide network 20
affiliations, or any combination of those entities working together 21
with the objective of serving more than 2,000 children across at 22
least 15 program sites statewide, or to serve more than 2,000 23
children across at least 15 program sites within a publicly defined 24
boundary region, and that have a demonstrated track record of 25
success in providing or organizing a statewide or regional system 26
of out-of-school time programs. If an applicant applies for a 27
statewide or regional grant, the applicant and the program sites 28
included on their application may not appear on any other grant 29
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application submitted for funding under subsection (2). 1
Sec. 32p. (1) From the state school aid fund money 2
appropriated in section 11, there is allocated an amount not to 3
exceed $30,000,000.00 for 2026-2027 to intermediate districts or 4
consortia of intermediate districts to support evidence-based early 5
childhood system building as described in this section. 6
(2) From the state school aid fund money allocated in 7
subsection (1), there is allocated an amount not to exceed 8
$15,900,000.00 to intermediate districts for the purpose of 9
coordinating early childhood services to support the goals and 10
outcomes under subsections (3), (5), (7), and (8) and to provide 11
supports for early childhood programs for children prenatal through 12
age 5. The funding provided to each intermediate district under 13
this section is determined by the distribution formula established 14
by the department of lifelong education, advancement, and potential 15
for the former Great Start collaboratives. To receive funding under 16
this section, each intermediate district must provide an 17
application to the department of lifelong education, advancement, 18
and potential, by a date determined by the department of lifelong 19
education, advancement, and potential, indicating the strategies 20
planned to be provided and how the strategies align with the Help 21
Me Grow National Fidelity Assessment. 22
(3) Each intermediate district or consortium of intermediate 23
districts that receives funding under this section shall convene a 24
Help Me Grow collaborative that includes an active partnership with 25
families and multiple community-based organizations. Each 26
intermediate district is required to employ at least a 0.8 FTE Help 27
Me Grow lead responsible for local system building activities and 28
at least a 0.5 FTE care coordinator for each intermediate district 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
region. The goal of each Help Me Grow collaborative is to ensure 1
the coordination and expansion of local early childhood systems and 2
programs that achieve the following outcomes: 3
(a) Improve family access, leadership, and engagement. 4
(b) Enhance child development, learning, and well-being. 5
(c) Create strong, efficient community systems. 6
(4) The responsibilities of the intermediate district Help Me 7
Grow lead described in subsection (3) include at least the 8
following: 9
(a) Facilitating local Help Me Grow collaboratives and 10
demonstrating growth toward fidelity to the Help Me Grow model by 11
implementing the following 4 core components of the model and its 12
key activities as indicated by the Help Me Grow National Fidelity 13
Assessment: 14
(i) Centralized access point. 15
(ii) Family and community outreach. 16
(iii) Child health provider outreach. 17
(iv) Data collection and analysis. 18
(b) Ensuring that local early childhood initiatives are data 19
driven and reflect the needs of the community, including literacy, 20
home visiting, and other early childhood programs. 21
(c) Completing the annual Help Me Grow National Fidelity 22
Assessment and tracking relevant data, including referrals, 23
systems-building activities, outreach efforts, developmental 24
screenings, and barriers, to demonstrate progress and inform 25
continuous improvement. 26
(d) Providing universal access to developmental screening for 27
children birth through age 5. 28
(e) Ensuring the local intermediate district has a dedicated 29
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care coordinator to support families in the community, either by 1
hiring locally, collaborating amongst intermediate districts, or 2
contracting with Help Me Grow Michigan. The care coordinator shall 3
have sufficient time dedicated to provide all of the following: 4
(i) Regular support of a public telephone line during work 5
hours to answer family questions. 6
(ii) Follow-up on universal developmental screenings and 7
referrals to appropriate early childhood programs and services. 8
(iii) Data tracking to ensure referrals from Help Me Grow 9
successfully connect to early childhood services. 10
(iv) Coordinated cross-sector supports to ensure that families 11
are seamlessly connected to the full scope of services within the 12
intermediate district region. 13
(5) From the state school aid fund money allocated in 14
subsection (1), there is allocated an amount not to exceed 15
$7,200,000.00 for the purpose of providing family support services, 16
including, but not limited to, home visiting, to at-risk children 17
and their families. From the funds allocated in this subsection, 18
$3,500,000.00 must be distributed to intermediate districts that 19
were awarded funds under former section 32p(4) in 2024-2025 to 20
provide home visits. Any remaining funds must be distributed 21
equally to all other intermediate districts. The family support 22
services described in this subsection must be conducted as part of 23
a locally coordinated, family-centered, evidence-based, data-driven 24
strategic plan that is approved by the department of lifelong 25
education, advancement, and potential and aligned with the Help Me 26
Grow National Fidelity Assessment. The goals of the family support 27
services funded under this subsection are to improve school 28
readiness using evidence-based methods, including a focus on 29
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developmentally appropriate outcomes for early literacy, to improve 1
positive parenting practices, and to improve family economic self-2
sufficiency while reducing the impact of high-risk factors through 3
community resources and referrals. The department of lifelong 4
education, advancement, and potential shall coordinate the goals of 5
the strategic plans approved under this subsection with other state 6
agency home visit programs in a way that strengthens Michigan's 7
home visiting infrastructure and maximizes federal funds available 8
for the purposes of at-risk family support services. The 9
coordination among departments and agencies is intended to avoid 10
duplication of state services and spending, and should emphasize 11
efficient delivery of family support services. 12
(6) At a date determined by the department of lifelong 13
education, advancement, and potential each year, each intermediate 14
district shall provide a report to Help Me Grow Michigan detailing 15
the strategies implemented during the immediately preceding year, 16
data on families served, and progress toward model fidelity based 17
upon the Help Me Grow National Fidelity Assessment. Help Me Grow 18
Michigan shall provide a completed copy of the statewide report to 19
the department of lifelong education, advancement, and potential, 20
who will submit a summary, including progress made toward the goals 21
and outcomes described in subsections (3), (5), (7), and (8), to 22
the house and senate appropriations subcommittees on school aid and 23
to the house and senate fiscal agencies by not later than March 31 24
of each year. 25
(7) From the state school aid fund money allocated in 26
subsection (1), there is allocated an amount not to exceed 27
$4,000,000.00 to improve literacy outcomes and advance school 28
readiness for children prenatal through age 5 by implementing 29
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evidence-based practices through Help Me Grow collaboratives that 1
engage families in education on reading aloud with their children, 2
reading frequency, and other developmentally appropriate and 3
evidence-based reading improvement techniques on a recurring basis. 4
A Help Me Grow collaborative may only use the funding to implement 5
family engagement practices that have an evidence base showing 6
improvement in early literacy outcomes with children prenatal 7
through age 5. Family engagements may occur through Early On 8
visits, evidence-based home visits, and Reach Out and Read well-9
child visits. Early childhood and medical professionals who engage 10
with the child's family must have participated in evidence-based 11
training or coaching on the literacy strategies implemented. A Help 12
Me Grow collaborative that receives funds under this subsection 13
must report to the state data collected during these family 14
engagements, including at least the type of engagement, frequency 15
of engagement, coaching or training model, and outcome data. The 16
formula described in subsection (1) must be used to allocate funds 17
to intermediate districts under this subsection. If funding under 18
this subsection is insufficient to enroll all interested families 19
in the service, each intermediate district must prioritize 20
enrollment to those families with the highest levels of economic 21
need. If an intermediate district will not fully use funding 22
received under this subsection, those funds must be returned to the 23
department of lifelong education, advancement, and potential for 24
redistribution for the purposes under this subsection. 25
(8) From the funds allocated in subsection (1), there is 26
allocated an amount not to exceed $1,500,000.00 to intermediate 27
districts in a manner determined by the department of lifelong 28
education, advancement, and potential, to support MiFamily 29
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Engagement Regional Centers. To be eligible for funds awarded under 1
this subsection, intermediate districts must partner with an entity 2
with expertise in family leadership, as determined by the 3
department of lifelong education, advancement, and potential. 4
(9) An intermediate district or consortium of intermediate 5
districts that receives funding under this section may carry over 6
any unexpended funds received under this section into the next 7
fiscal year and may expend those unused funds through June 30 of 8
the next fiscal year. 9
(10) From the state school aid fund money allocated in 10
subsection (1), there is allocated an amount not to exceed 11
$50,000.00 to Oakland Schools to provide strategic leadership to 12
the department of lifelong education, advancement, and potential 13
and Help Me Grow Michigan. Oakland Schools may retain not more than 14
5% of the funding received under this section for administrative 15
purposes and shall use remaining funding to support expansion and 16
enhancement of Help Me Grow. 17
(11) From the state school aid fund money allocated in 18
subsection (1), there is allocated an amount not to exceed 19
$1,350,000.00 to Clinton County RESA as fiscal agent and partner 20
for Help Me Grow Michigan to provide statewide leadership, a 21
central access point, technical assistance, community outreach, and 22
administrative support. Statewide strategic leadership will be 23
supported as described in subsection (10). Clinton County RESA may 24
retain not more than 5% of the funding received under this section 25
for administrative purposes and shall use remaining funding to 26
support expansion and enhancement of Help Me Grow. 27
(12) Notwithstanding section 17b, the department of lifelong 28
education, advancement, and potential shall make payments under 29
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this section on a schedule determined by the department of lifelong 1
education, advancement, and potential. 2
Sec. 32t. (1) From the state school aid fund money 3
appropriated in section 11, there is allocated for 2025-2026 2026-4
2027 only an amount not to exceed $25,000,000.00 $11,000,000.00 to 5
Clinton County RESA (CCRESA) for to continue phase 2 of a preschool 6
pilot program to provide services to 3-year-old children. Eligible 7
children are those whose age is less than 4 years on September 1 8
and greater than or equal to 3 years on December 1 of the current 9
school year and whose family income is at or below 250% of the 10
federal poverty level, with priority given to families with lower 11
incomes. Additional factors such as developmental delay, language 12
barriers, or challenging behaviors may also be considered for 13
eligibility. These services must be designed for children who are 14
age 3 and must be similar to the services provided through the 15
great start readiness program. The program described in this 16
section must be administered by CCRESA Strong Beginnings 17
Implementation Team under the direction of the department of 18
lifelong education, advancement, and potential, with assessment, 19
data, and collection analysis for the program being provided by 20
Michigan State University. 21
(2) The department of lifelong education, advancement, and 22
potential must pay the funding under this section to Clinton County 23
RESA in installments over 2 years. The department of lifelong 24
education, advancement, and potential shall determine the amount to 25
be used in each year. 26
(2) (3) This section is intended to provide planning for and 27
implement continue phase 2 of the pilot preschool program for 3-28
year-old children. The second phase of the pilot will examine 29
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variations of the current program, such as part-day, 5-day-per-1
week, multiage grouping with the great start readiness program, and 2
inclusion. 3
(3) (4) In order to evaluate the outcomes and impact of strong 4
beginnings, Clinton County RESA and Michigan State University shall 5
compare outcomes for children who attend strong beginnings and the 6
great start readiness program with: 7
(a) Outcomes for children who attend the great start readiness 8
program only. 9
(b) Outcomes for children who did not attend either program. 10
(4) (5) Data used for the purpose of comparisons under 11
subsection (4) (3) must include, at a minimum, strong beginnings 12
waitlist data, strong beginnings child assessment data, the great 13
start readiness program child assessment data, kindergarten 14
attendance data, and elementary standardized testing data. 15
(5) (6) At the end of phase 2, Clinton County RESA shall 16
provide a report to the department of lifelong education, 17
advancement, and potential detailing all of the following: 18
(a) How the phase 2 pilot was conducted. 19
(b) Demographics of the children served. 20
(c) Outcomes achieved. 21
(d) Scope of expansion, including successes and challenges the 22
pilot faced and how the implementation team responded. 23
(e) An updated model, including phase 2 variations, this state 24
could use to scale the program statewide, if funding were 25
available. 26
(6) (7) The funds allocated under this section for 2025-2026 27
2026-2027 are a work project appropriation, and any unexpended 28
funds for 2025-2026 2026-2027 are carried forward into 2026-2027. 29
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2027-2028. The purpose of the work project is to expand phase 1 of 1
the pilot to additional classrooms and initiate phase 2 of the 2
pilot. The estimated completion date of the work project is 3
September 30, 2029.2030. 4
(7) (8) Notwithstanding section 17b, the department of 5
lifelong education, advancement, and potential shall make payments 6
under this section on a schedule determined by the department of 7
lifelong education, advancement, and potential. 8
Sec. 35a. (1) From the appropriations in section 11, there is 9
allocated for 2024-2025 an amount not to exceed $82,900,000.00 and 10
for 2025-2026 an amount not to exceed $52,000,000.00 for 2026-2027 11
an amount not to exceed $102,500,000.00 from the state school aid 12
fund for the purposes of this section. It is the intent of the 13
legislature that, for 2026-2027, 2027-2028, the allocation from the 14
state school aid fund money appropriated in section 11 for the 15
purposes described in this section will be $42,000,000.00. 16
Excluding staff or contracted employees funded under subsection 17
(8), the $52,500,000.00. The superintendent shall designate staff 18
or contracted employees funded under this section as critical 19
shortage. By not later than December 31 of each fiscal year in 20
which funding is allocated under this section, the superintendent 21
of public instruction shall do both of the following: 22
(a) Report in person to the house and senate appropriations 23
subcommittees on school aid regarding progress on early literacy 24
and be available for questioning as prescribed through a process 25
developed by the chairs of the house and senate appropriations 26
subcommittees on school aid. 27
(b) Submit a written report to the house and senate 28
appropriations subcommittees on school aid regarding progress on 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
early literacy. Beginning in 2025-2026, the The report described in 1
this subdivision must include the number of literacy coaches 2
supported by funding provided under subsection (4), (2), including 3
the number of coaches supported in each intermediate district, and 4
the percentage of supported coaches that have received, or are in 5
the process of receiving, professional learning by the approved 6
provider described in subsection (11).(5). 7
(2) A district that receives funds under subsection (5) may 8
spend up to 5% of those funds for professional development for 9
educators in a department-approved research-based training program 10
related to current state literacy standards for pupils in grades 11
pre-K to 5. The professional development must also include training 12
in the use of screening and diagnostic tools, progress monitoring, 13
and intervention methods used to address barriers to learning and 14
delays in learning that are diagnosed through the use of these 15
tools. 16
(3) A district that receives funds under subsection (5) may 17
use up to 5% of those funds to administer department-approved 18
screening and diagnostic tools to monitor the development of early 19
literacy and early reading skills, and risk factors for word-level 20
reading difficulties of pupils in grades pre-K to 5 and to support 21
evidence-based professional learning described in subsection (11) 22
for educators in administering and using screening, progress 23
monitoring, and diagnostic assessment data to inform instruction 24
through prevention and intervention in a multi-tiered system of 25
supports framework. A department-approved screening and diagnostic 26
tool administered by a district using funding under this section 27
must include all of the following components: phonemic awareness, 28
phonics, fluency, rapid automatized naming (RAN), and 29
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comprehension. Further, all of the following sub-skills must be 1
assessed within each of these components: 2
(a) Phonemic awareness - segmentation, blending, and sound 3
manipulation (deletion and substitution). 4
(b) Phonics - decoding (reading) and encoding (spelling). 5
(c) Fluency. 6
(d) Comprehension - making meaning of text. 7
(2) (4) From the allocation under subsection (1), there is 8
allocated an amount not to exceed $42,000,000.00 $52,500,000.00 for 9
2024-2025 and 2025-2026 2026-2027 for the purpose of providing 10
early literacy coaches at intermediate districts to assist teachers 11
in developing and implementing instructional strategies for pupils 12
in grades pre-K to 5 so that pupils are reading at grade level by 13
the end of grade 3. All of the following apply to funding under 14
this subsection: 15
(a) The department shall develop an application process 16
consistent with the provisions of this subsection. An application 17
must provide assurances that literacy coaches funded under this 18
subsection are knowledgeable about at least the following: 19
(i) Current state literacy standards for pupils in grades pre-K 20
to 3. 21
(ii) Implementing an instructional delivery model based on 22
frequent use of formative, screening, and diagnostic tools, known 23
as a multi-tiered system of supports, to determine individual 24
progress for pupils in grades pre-K to 5 so that pupils are reading 25
at grade level by the end of grade 3. 26
(iii) The use of data from diagnostic tools to determine the 27
necessary additional supports and interventions needed by 28
individual pupils in grades pre-K to 5 to read at grade level. 29
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(b) From the allocation under this subsection, the department 1
shall award grants to intermediate districts for the support of 2
early literacy coaches. The department shall provide this funding 3
in the following manner: 4
(i) The department shall award each intermediate district grant 5
funding to support the cost of 2 4 early literacy coaches in an 6
equal amount per early literacy coach, not to exceed $125,000.00. 7
(ii) After distribution of the grant funding under subparagraph 8
(i), the department shall distribute the remainder of grant funding 9
for additional early literacy coaches in an amount not to exceed 10
$125,000.00 per early literacy coach. The number of funded early 11
literacy coaches for each intermediate district is The department 12
shall ensure that each intermediate district receives funding for 13
at least 1 additional literacy coach compared to the number of 14
coaches funded under this section in 2025-2026. 15
(iii) If funding under this subsection remains available after 16
the distributions in subparagraphs (i) and (ii), the department shall 17
distribute the remaining funds based on the percentage of the total 18
statewide number of pupils in grades K to 3 who meet the income 19
eligibility standards for the federal free and reduced-price lunch 20
programs who are enrolled in districts in the intermediate 21
district. Funds may be distributed under this section only after 22
the department ensures that no intermediate district receives 23
funding for fewer literacy coaches in 2026-2027 compared to the 24
number of coaches for which the intermediate district received 25
funding in 2025-2026. 26
(c) If an intermediate district that receives funding under 27
this subsection uses an assessment tool that screens for 28
characteristics of dyslexia, the intermediate district shall use 29
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the assessment results from that assessment tool to identify pupils 1
who demonstrate characteristics of dyslexia. 2
(d) All literacy coaches funded under this subsection must 3
have already received, or be making progress toward receiving, 4
professional learning by the approved provider described in 5
subsection (11).(5). 6
(e) To be eligible to receive funding under this subsection, 7
an intermediate district must provide the department with a list by 8
September 1 of the immediately preceding fiscal year containing 9
contact information for all literacy coaches funded under this 10
subsection, in a form and manner determined by the department. An 11
intermediate district shall communicate any personnel changes and 12
changes to contact information for literacy coaches funded under 13
this subsection to the department within 30 days of the personnel 14
change or change in contact information. 15
(5) From the allocation under subsection (1), there is 16
allocated an amount not to exceed $19,900,000.00 for 2024-2025 to 17
districts that provide additional instructional time to those 18
pupils in grades pre-K to 5 who have been identified by using 19
department-approved screening and diagnostic tools as needing 20
additional supports and interventions to read at grade level by the 21
end of grade 3. Additional instructional time may be provided 22
before, during, and after regular school hours or as part of a 23
year-round balanced school calendar. All of the following apply to 24
funding under this subsection: 25
(a) To be eligible to receive funding, a district must 26
demonstrate to the satisfaction of the department that the district 27
has done all of the following: 28
(i) Implemented a multi-tiered system of supports instructional 29
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delivery model that is an evidence-based model that uses data-1
driven problem solving to integrate academic and behavioral 2
instruction and that uses intervention delivered to all pupils in 3
varying intensities based on pupil needs. The multi-tiered system 4
of supports must provide at least all of the following essential 5
components: 6
(A) Team-based leadership. 7
(B) A tiered delivery system. 8
(C) Selection and implementation of instruction, 9
interventions, and supports. 10
(D) A comprehensive screening and assessment system. 11
(E) Continuous data-based decision making. 12
(ii) Used department-approved research-based diagnostic tools 13
to identify individual pupils in need of additional instructional 14
time. 15
(iii) Used a reading instruction method that focuses on the 5 16
fundamental building blocks of reading: phonics, phonemic 17
awareness, fluency, vocabulary, and comprehension and content 18
knowledge. 19
(iv) Provided teachers of pupils in grades pre-K to 5 with 20
research-based professional development in diagnostic data 21
interpretation. 22
(v) Complied with the requirements under section 1280f of the 23
revised school code, MCL 380.1280f. 24
(b) The department shall distribute funding allocated under 25
this subsection to eligible districts on an equal per-first-grade-26
pupil basis. 27
(c) If the funds allocated under this subsection are 28
insufficient to fully fund the payments under this subsection, 29
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payments under this subsection are prorated on an equal per-pupil 1
basis based on grade 1 pupils. 2
(6) By not later than September 1 of each year, a district 3
that receives funding under subsection (5) in conjunction with the 4
Michigan student data system, if possible, shall provide to the 5
department a report that includes at least both of the following, 6
in a form and manner prescribed by the department: 7
(a) For pupils in grades pre-K to 5, the teachers, pupils, 8
schools, and grades served with funds under this section and the 9
categories of services provided. 10
(b) For pupils in grades pre-K to 5, pupil proficiency and 11
growth data that allows analysis both in the aggregate and by each 12
of the following subgroups, as applicable: 13
(i) School. 14
(ii) Grade level. 15
(iii) Gender. 16
(iv) Race. 17
(v) Ethnicity. 18
(vi) Economically disadvantaged status. 19
(vii) Disability. 20
(viii) Pupils identified as having reading deficiencies. 21
(7) From the allocation under subsection (1), there is 22
allocated an amount not to exceed $6,000,000.00 for 2024-2025 to an 23
intermediate district in which the combined total number of pupils 24
in membership of all of its constituent districts is the fewest 25
among all intermediate districts. All of the following apply to the 26
funding under this subsection: 27
(a) Funding under this subsection must be used by the 28
intermediate district, in partnership with an association that 29
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represents intermediate district administrators in this state, to 1
implement all of the following: 2
(i) Literacy essentials teacher and principal training modules. 3
(ii) Face-to-face and online professional learning of literacy 4
essentials teacher and principal training modules for literacy 5
coaches, principals, and teachers. 6
(iii) The placement of regional lead literacy coaches to 7
facilitate professional learning for early literacy coaches. These 8
regional lead literacy coaches shall provide support for new 9
literacy coaches, building teachers, and administrators and shall 10
facilitate regional data collection to evaluate the effectiveness 11
of statewide literacy coaches funded under this section. 12
(iv) Provide $500,000.00 from this subsection for literacy 13
training, modeling, coaching, and feedback for district principals 14
or chief administrators, as applicable. The training described in 15
this subparagraph must use the pre-K and K to 3 essential 16
instructional practices in literacy created by the general 17
education leadership network as the framework for all training 18
provided under this subparagraph. 19
(v) Job-embedded professional learning opportunities for 20
mathematics teachers through mathematics instructional coaching. 21
Funding must be used for professional learning for coaches, 22
professional developers, administrators, and teachers; coaching for 23
early mathematics educators; the development of statewide and 24
regional professional learning networks in mathematics 25
instructions; and the development and support of digital 26
professional learning modules. 27
(b) By not later than September 1 of each year, the 28
intermediate district described in this subsection, in consultation 29
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with grant recipients, shall submit a report to the chairs of the 1
senate and house appropriations subcommittees on school aid, the 2
chairs of the senate and house standing committees responsible for 3
education legislation, the house and senate fiscal agencies, and 4
the state budget director. The report described under this 5
subdivision must include student achievement results in English 6
language arts and mathematics and survey results with feedback from 7
parents and teachers regarding the initiatives implemented under 8
this subsection. 9
(c) Up to 2% of funds allocated under this subsection may be 10
used by the association representing intermediate district 11
administrators that is in partnership with the intermediate 12
district specified in this subsection to administer this 13
subsection. 14
(8) From the allocation under subsection (1), the department 15
shall allocate the amount of $5,000,000.00 for 2024-2025 only to an 16
intermediate district or a consortium of intermediate districts to 17
partner with the Michigan Education Corps for the PreK Reading 18
Corps, the K3 Reading Corps, and the Math Corps. An intermediate 19
district or a consortium of intermediate districts receiving 20
funding under this subsection must forward the amount received 21
under this subsection to the Michigan Education Corps for statewide 22
services. As conditions of receiving funding from an intermediate 23
district or a consortium of intermediate districts, all of the 24
following apply to funding received by the Michigan Education Corps 25
under this subsection: 26
(a) By September 1 of the current fiscal year, the Michigan 27
Education Corps shall provide a report concerning its use of the 28
funding to the senate and house appropriations subcommittees on 29
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school aid, the senate and house fiscal agencies, and the senate 1
and house caucus policy offices on outcomes and performance 2
measures of the Michigan Education Corps, including, but not 3
limited to, the degree to which the Michigan Education Corps' 4
replication of the PreK Reading Corps, the K3 Reading Corps, and 5
the Math Corps programs is demonstrating sufficient efficacy and 6
impact. The report must include data pertaining to at least all of 7
the following: 8
(i) The current impact of the programs on this state in terms 9
of numbers of children and schools receiving support. This portion 10
of the report must specify the number of children tutored, 11
including dosage and completion, and the demographics of those 12
children. 13
(ii) Whether the assessments and interventions are implemented 14
with fidelity. This portion of the report must include details on 15
the total number of assessments and interventions completed and the 16
range, mean, and standard deviation. 17
(iii) Whether the literacy or math improvement of children 18
participating in the programs is consistent with expectations. This 19
portion of the report must detail at least all of the following: 20
(A) Growth rate by grade or age level, in comparison to 21
targeted growth rate. 22
(B) Average linear growth rates. 23
(C) Exit rates. 24
(D) Percentage of children who exit who also meet or exceed 25
spring benchmarks. 26
(iv) The impact of the programs on organizations and 27
stakeholders, including, but not limited to, school administrators, 28
internal coaches, and AmeriCorps members. 29
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(b) If the department determines that the Michigan Education 1
Corps has misused the funds allocated under this subsection, the 2
Michigan Education Corps shall reimburse this state for the amount 3
of state funding misused. 4
(c) An intermediate district or a consortium of intermediate 5
districts may not reserve any portion of the allocation provided 6
under this subsection for an evaluation of the Michigan Education 7
Corps, the Michigan Education Corps' funding, or the Michigan 8
Education Corps' programming unless agreed to in writing by the 9
Michigan Education Corps. An intermediate district or a consortium 10
of intermediate districts shall award the entire amount allocated 11
under this subsection to the Michigan Education Corps and shall not 12
condition the forwarding of this funding on the implementation of 13
an independent evaluation. 14
(f) The department shall develop a coaching evaluation 15
framework to be implemented in alignment to the literacy coaching 16
model described in section 1280f of the revised school code, MCL 17
388.1280f. 18
(g) All literacy coaches funded under this subsection must 19
comply with the requirements described in section 35o. 20
(3) (9) If a district or intermediate district expends any 21
funding received under subsection (4) or (5) (2) for professional 22
development in research-based effective reading instruction, the 23
district or intermediate district shall select a professional 24
development program from the list described in subdivision (a). All 25
of the following apply to the requirement under this subsection: 26
(a) The department shall issue a request for proposals for 27
professional development programs in research-based effective 28
reading instruction to develop an initial approved list of 29
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professional development programs in research-based effective 1
reading instruction. The department shall make the initial approved 2
list public and shall determine if it will, on a rolling basis, 3
approve any new proposals submitted for addition to its initial 4
approved list. 5
(b) To be included as an approved professional development 6
program in research-based effective reading instruction under 7
subdivision (a), an applicant must demonstrate to the department in 8
writing the program's competency in all of the following topics: 9
(i) Understanding of phonemic awareness, phonics, fluency, 10
vocabulary, and comprehension. 11
(ii) Appropriate use of assessments and differentiated 12
instruction. 13
(iii) Selection of appropriate instructional materials. 14
(iv) Application of research-based instructional practices. 15
(c) As used in this subsection, "effective reading 16
instruction" means reading instruction scientifically proven to 17
result in improvement in pupil reading skills. 18
(4) (10) From the allocation under subsection (1), there is 19
allocated an amount not to exceed $10,000,000.00 $50,000,000.00 for 20
2024-2025 and 2025-2026 2026-2027 only to an intermediate district 21
identified by the department for the provision of professional 22
learning by the approved provider described in subsection (11), 23
first to educators in pre-K, kindergarten, and grade 1 next to 24
educators in grade 2 and grade 3; and then to additional elementary 25
school educators and pre-K to grade 12 certificated special 26
education personnel with endorsements in learning disabilities, 27
emotional impairments, or speech and language impairments. (5) to 28
pre-K to grade 5 educators, special education educators, and 29
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administrators overseeing these individuals. Funding allocated 1
under this subsection must be distributed over a 5-year period. The 2
funds allocated under this subsection are a work project 3
appropriation, and any unexpended funds for 2026-2027 are carried 4
forward into 2027-2028. The purpose of the work project is to 5
continue the provision of professional learning as described in 6
this subsection and subsection (5). The estimated completion date 7
of the work project is September 30, 2031. For purposes of this 8
subsection, the approved provider described in subsection (5) must 9
establish and manage professional learning opportunities that are 10
open to all school personnel described in this subsection. as 11
follows: 12
(a) The approved provider must first open voluntary enrollment 13
for any pre-K through grade 3 teacher on a first-come, first-served 14
basis, with voluntary enrollment prioritized for pre-K, 15
kindergarten, and grade 1 teachers. The approved provider shall 16
then open voluntary enrollment for the remaining school personnel 17
described in this subsection. 18
(b) The approved provider must maintain open enrollment until 19
all funds are expended. 20
(5) (11) For the provision of professional learning to the 21
school personnel described in subsection (10), (4), LETRS is the 22
approved provider of professional learning as long as LETRS 23
continues to meet all of the following: 24
(a) Be offered through a system of training that provides 25
educators with the knowledge base to effectively implement any 26
class-wide, supplemental, or intervention reading approach and to 27
determine why some students struggle with reading, writing, 28
spelling, and language. 29
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(b) Provide training activities that direct educators to 1
implement effective reading and spelling instruction supported by 2
scientifically based research and foster a direct explicit 3
instructional sequence that uses techniques to support teachers' 4
independence in using their newly-learned skills with students in 5
the classroom. 6
(c) Include integrated components for educators and 7
administrators in pre-K to grade 3 with embedded evaluation or 8
assessment of knowledge. Evaluation or assessment of knowledge 9
under this subdivision must incorporate evaluations of learning 10
throughout each unit and include a summative assessment that must 11
be completed to demonstrate successful course completion. 12
(d) Build teacher content knowledge and pedagogical knowledge 13
of the critical components of literacy including how the brain 14
learns to read, phonological and phonemic awareness; letter 15
knowledge; phonics; advanced phonics; vocabulary and oral language; 16
fluency; comprehension; spelling and writing; and the organization 17
of language. 18
(e) Support educators in understanding how to effectively use 19
screening, progress monitoring, and diagnostic assessment data to 20
improve literacy outcomes through prevention and intervention for 21
reading difficulties in a multi-tiered system of supports. The 22
multi-tiered system of supports must include at least all of the 23
following essential components: 24
(i) Team-based leadership. 25
(ii) A tiered delivery system. 26
(iii) Selection and implementation of instruction, 27
interventions, and supports. 28
(iv) A comprehensive screening and assessment system. 29
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(v) Continuous data-based decision making. 1
(12) Notwithstanding section 17b, the department shall make 2
payments made under subsections (7) and (8) on a schedule 3
determined by the department. 4
(f) On a quarterly basis, report all of the following 5
information to the department, in a form and manner prescribed by 6
the department: 7
(i) The total number of individuals who have completed the 8
required professional learning, organized by role group. 9
(ii) The total number of individuals who are enrolled in the 10
professional learning, organized by role group. 11
(iii) The total number of individuals who enrolled but withdrew 12
from the professional learning prior to completion, organized by 13
role group. 14
(iv) The total number of individuals who enrolled but 15
transferred to a different cohort prior to completion, organized by 16
role group. 17
(v) The cost per individual to enroll in the professional 18
learning. 19
(vi) The total grant funds expended for all individuals who 20
completed or enrolled in the professional learning during the 21
quarter reported. 22
(vii) The total unused grant funds for the quarter reported. 23
(viii) The strategies and technical assistance provided to 24
support participant completion. 25
(6) (13) As used in this section: 26
(a) "Dyslexia" means both of the following: 27
(i) A specific learning disorder that is neurobiological in 28
origin and characterized by difficulties with accurate or fluent 29
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word recognition and by poor spelling and decoding abilities that 1
typically result from a deficit in the phonological component of 2
language that is often unexpected in relation to other cognitive 3
abilities and the provision of effective classroom instruction. 4
(ii) A specific learning disorder that may include secondary 5
consequences, such as problems in reading comprehension and a 6
reduced reading experience that can impede the growth of vocabulary 7
and background knowledge and lead to social, emotional, and 8
behavioral difficulties. 9
(b) "Evidence-based" means an activity, program, process, 10
service, strategy, or intervention that demonstrates statistically 11
significant effects on improving pupil outcomes or other relevant 12
outcomes and that meets at least both of the following: 13
(i) At least 1 of the following: 14
(A) Is based on strong evidence from at least 1 well-designed 15
and well-implemented experimental study. 16
(B) Is based on moderate evidence from at least 1 well-17
designed and well-implemented quasi-experimental study. 18
(C) Is based on promising evidence from at least 1 well-19
designed and well-implemented correlational study with statistical 20
controls for selection bias. 21
(D) Demonstrates a rationale based on high-quality research 22
findings or positive evaluation that the activity, program, 23
process, service, strategy, or intervention is likely to improve 24
pupil outcomes or other relevant outcomes. 25
(ii) Includes ongoing efforts to examine the effects of the 26
activity, program, process, service, strategy, or intervention. 27
(c) "Explicit" means direct and deliberate instruction through 28
continuous pupil-teacher interaction that includes teacher 29
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modeling, guided practice, and independent practice. 1
(d) "Fluency" means the ability to read with speed, accuracy, 2
and proper expression. 3
(e) "Multi-tiered system of supports" means a comprehensive 4
framework that includes 3 distinct tiers of instructional support 5
and is composed of a collection of evidence-based strategies 6
designed to meet the individual needs and assets of a whole pupil 7
at all achievement levels. 8
(f) "Phonemic awareness" means the conscious awareness of all 9
of the following: 10
(i) Individual speech sounds, including, but not limited to, 11
consonants and vowels, in spoken syllables. 12
(ii) The ability to consciously manipulate through, including, 13
but not limited to, matching, blending, segmenting, deleting, or 14
substituting, individual speech sounds described in subparagraph 15
(i). 16
(iii) All levels of the speech sound system, including, but not 17
limited to, word boundaries, rhyme recognition, stress patterns, 18
syllables, onset-rime units, and phonemes. 19
(g) "Phonological" means relating to the system of contrastive 20
relationships among the speech sounds that constitute the 21
fundamental components of a language. 22
(h) "Progress monitoring" means the assessing of students' 23
academic performance, quantifying students' rates of improvement or 24
progress toward goals, and determining how students are responding 25
to instruction. 26
(i) "Rapid automatized naming (RAN)" means a task that 27
measures how quickly individuals can name objects; pictures; 28
colors; or symbols, including letters and digits, aloud, which can 29
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predict later reading abilities for preliterate children. 1
Sec. 35e. (1) From the state school aid fund money 2
appropriated in section 11, there is allocated for 2025-2026 only 3
an amount not to exceed $250,000.00 to Wayne State University to 4
study this state's public school library programs. 5
(2) Wayne State University shall convene a committee to 6
conduct the study described in this section. The committee must 7
consist of 1 member from each of the following organizations: 8
(a) The department. 9
(b) The Library of Michigan. 10
(c) The Michigan Association of School Librarians. 11
(d) The Michigan senate. 12
(e) The Michigan house of representatives. 13
(f) The Michigan Education Association. 14
(g) The Michigan chapter of the American Federation of 15
Teachers. 16
(h) The Michigan Association of Superintendents and 17
Administrators. 18
(i) A Michigan research university. 19
(3) The committee described in subsection (2) shall conduct a 20
study to investigate at least all of the following issues: 21
(a) How many schools in each district have a school library. 22
(b) What hours school libraries are open each week for 23
students and faculty to use. 24
(c) What full-time equivalency of certified school librarians 25
are employed at each building. 26
(d) The ratio of students per certified school librarian. 27
(e) What full-time equivalency of paraprofessional or other 28
staff are employed in the school library and the credentialing of 29
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these staff, if any. 1
(f) How school libraries are scheduled. 2
(g) How many hours each week school librarians provide direct 3
library-related instruction to students. 4
(h) The technology available for students to access library 5
resources and lessons. 6
(i) The size and age of the collection in each school library, 7
and the extent of digital materials available for students to 8
access. 9
(j) Current funding per student for school library materials. 10
(k) Any other matters that the committee considers relevant to 11
the fulfillment of its mission to determine the status of school 12
library programs in this state. 13
(4) The department shall provide staff and other resources as 14
the committee described in subsection (2) considers appropriate, 15
including contracting with a researcher. Appropriate costs must be 16
determined by the department, and the committee described in 17
subsection (2) shall reimburse the department for costs related to 18
this subsection. 19
(5) The committee described in subsection (2) may conduct 20
public hearings to gather information, and may sponsor statewide or 21
regional conferences involving educators, students, or the public 22
at large. 23
(6) The committee described in subsection (2) shall provide a 24
report to the house and senate appropriations subcommittees on 25
school aid, the state budget director, the house and senate fiscal 26
agencies, and the department by not later than December 31, 2026. 27
The report must create a long-term plan for this state's school 28
library programs that may include the adoption of guidelines for 29
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school library facilities, budget, staffing, collection 1
development, and curriculum standards for school library programs. 2
The final report and recommendations must include drafts of 3
legislation necessary to carry those recommendations into effect. 4
(7) Notwithstanding section 17b, the department shall make 5
payments under this section on a schedule determined by the 6
department. 7
(1) From the state school aid fund money appropriated in 8
section 11, there is allocated for 2026-2027 $21,000,000.00 to 9
districts in an equal amount per pupil to support school libraries. 10
(2) A recipient of funding under this section shall use the 11
funds only for the salaries and benefits of certified school 12
librarians, electronic or material resources for school libraries, 13
or furniture, equipment, or supplies for school libraries. 14
Sec. 35m. (1) From the state school aid fund money 15
appropriated in section 11, there is allocated for 2025-2026 2026-16
2027 only an amount not to exceed $64,400,000.00 $100,000,000.00 17
for the purposes described in this section, including payments to 18
improve educational outcomes in literacy. The department shall 19
award funding allocated for 2026-2027 under this section in a 20
quantity and magnitude such that the allocation in this subsection 21
is distributed over 2 fiscal years. 22
(2) The department shall continue the committee for literacy 23
achievement that includes representatives of higher education and 24
early childhood literacy educators who have expertise in literacy 25
instruction and research. The committee shall exist until at least 26
September 2029. The department shall appoint the members of the 27
committee for literacy achievement. The department shall develop a 28
process to identify and assemble experts for the committee. The 29
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primary focus of the committee is to recommend tools and strategies 1
with the goal of increasing student academic outcomes in the area 2
of literacy. The committee is encouraged to collaborate with the 3
Michigan Education Research Institute or other entities with 4
similar expertise on the subject of literacy. The department shall 5
determine the size and benchmarks of the committee. The committee 6
shall do all of the following: 7
(a) Critically evaluate early literacy series and materials. 8
The committee shall evaluate with research-based outcomes, using 9
the committee's expertise in the field of literacy. The committee 10
shall assign grade tiers to the series based on the series' 11
likelihood to increase student literacy outcomes. Priority must be 12
given to series that already have a demonstrated history of 13
increasing student outcomes. The committee may perform an 14
evaluation under this subdivision based on submissions from a 15
vendor, but must independently verify the validity of information 16
provided by the vendor. The committee is also strongly encouraged 17
to evaluate available materials not submitted to the department by 18
a vendor. 19
(b) Critically evaluate literacy professional development. The 20
committee shall evaluate with research-based outcomes, using the 21
committee's expertise in the field of literacy. The committee shall 22
assign grade tiers to the professional development based on the 23
professional development's likelihood to increase student literacy 24
outcomes. Priority must be given to professional development that 25
already has a demonstrated history of increasing student outcomes. 26
The committee may perform an evaluation under this subdivision 27
based on submissions from a vendor, but must independently verify 28
the validity of information provided by the vendor. The committee 29
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is also strongly encouraged to evaluate available materials not 1
submitted to the department by a vendor. 2
(c) Critically evaluate other applicable literacy tools or 3
services the committee determines to have a high likelihood or 4
demonstrated history of increasing student literacy outcomes. The 5
committee may perform an evaluation under this subdivision based on 6
submissions from a vendor, but must independently verify the 7
validity of information provided by the vendor. The committee is 8
also strongly encouraged to evaluate available materials not 9
submitted to the department by a vendor. 10
(d) Create, maintain, and post annually on a publicly 11
available website a rankings list of all early literacy series and 12
other items the committee has evaluated. This includes items from 13
each part of the rankings list, items evaluated in the 2024-2025 14
school year, and any subsequent items evaluated going forward. The 15
committee shall denote on the list whether major changes have been 16
made to an early literacy series or other item on the list since 17
the early literacy series or other item was evaluated by the 18
committee and if the early literacy series or other item has not 19
been evaluated since the last ranking. The rankings list created in 20
this subdivision must align with the list of evidence-based tier 1, 21
classwide elementary reading curricula and materials that are 22
aligned with science of reading methods that research has shown to 23
improve literacy outcomes and help pupils achieve reading 24
proficiency as required under section 1280f of the revised school 25
code, MCL 380.1280f. 26
(3) An individual on the committee shall recuse themselves 27
from evaluating early literacy series and other items that the 28
individual has helped create, that the individual would benefit 29
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from financially, or for which the individual has any other 1
conflict of interest. 2
(4) From the funds allocated in subsection (1), the department 3
shall make payments to districts and intermediate districts in an 4
amount determined by the department. The department shall not make 5
payments under this subsection until it has critically evaluated as 6
many early literacy series and other items from subsection (2) as 7
possible. Payments under this subsection must begin to be made 8
during the current fiscal year to support district implementation 9
in 2026-2027. 2027-2028. The department shall use the rankings list 10
described in subsection (2) as the basis for how funding is 11
allocated in subsection (1) to districts and intermediate 12
districts. Districts and intermediate districts using higher-ranked 13
literacy tools that are proven to increase student outcomes shall 14
receive more funding than districts and intermediate districts 15
utilizing lower-ranked literacy tools in both the base award and 16
the per-pupil awards described in this subsection. The department 17
may determine that some districts and intermediate districts will 18
not receive funding under this section based on the effectiveness 19
of the early literacy series or other items being utilized by the 20
district or intermediate district. The department shall award 21
funding under this section using the following methodology: 22
(a) A base award equal to the amount necessary for the 23
district or intermediate district to implement the chosen early 24
literacy series or other item. The department may place a cap on 25
the total award per district, intermediate district, or early 26
literacy series or other item and may choose not to award funding 27
if the early literacy series or other item is determined to be 28
ineffective or is determined to be less effective than other 29
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choices. 1
(b) A tiered per-pupil award based on the number of pupils in 2
membership at the district and intermediate district. The tiered 3
per-pupil award must provide a higher per-pupil payment to 4
districts and intermediate districts using higher-ranked early 5
literacy series or other items as determined under subsection (2). 6
The department may choose not to award funding if the early 7
literacy series or other item is determined to be ineffective or is 8
determined to be less effective than other choices. 9
(5) From the funding allocated in subsection (1), the 10
department may pay an annual stipend of up to $8,000.00 for each 11
member of the committee for literacy achievement who is employed by 12
or at a public institution of higher education, a district, or an 13
intermediate district. A stipend must be commensurate with the 14
committee member's contribution to the committee. Funding must be 15
paid to the public institution of higher education, the district, 16
or the intermediate district where the committee member is 17
employed, and the public institution of higher education, the 18
district, or the intermediate district must then use funding 19
received to award the stipend directly to the individual committee 20
member. A committee member who is not employed by or at a public 21
institution of higher education, a district, or an intermediate 22
district is not eligible to receive a stipend under this 23
subsection. 24
(6) To be eligible for funding under this section, a district 25
or intermediate district must apply in a form and manner determined 26
by the department. As a condition of receiving the funding, the 27
district or intermediate district must agree to provide to the 28
department information twice a year, on or before May 1 and October 29
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1, on the early literacy series and other items used for the 1
previous and current school years, and the early literacy series 2
and other items to be used for the next school year. The early 3
literacy series and other items used by districts and intermediate 4
districts must be added to the annual rankings required under 5
subsection (2). 6
(7) Except as otherwise provided in this section and 7
notwithstanding section 17b, the department shall make payments 8
under this section on a schedule determined by the department. 9
(8) Funds allocated under subsection (1) for 2025-2026 2026-10
2027 are a work project appropriation, and any unexpended funds for 11
2025-2026 2026-2027 are carried forward into 2026-2027. 2027-2028. 12
The purpose of the work project is to improve literacy 13
instructional practices. The estimated completion date of the work 14
project is September 30, 2029. 15
(9) In addition to the allocation under subsection (1), from 16
the state school aid fund money appropriated in section 11, there 17
is allocated an amount not to exceed $4,000,000.00 for 2025-2026 18
only to an intermediate district in which the combined total number 19
of pupils in membership of all of its constituent districts is the 20
fewest among all intermediate districts in this state. All of the 21
following apply to the funding under this subsection: 22
(a) Funding under this subsection must be used by the 23
intermediate district, in partnership with an association that 24
represents intermediate district administrators in this state, to 25
implement all of the following: 26
(i) Literacy essentials teacher and principal training modules. 27
(ii) Face-to-face and online professional learning on literacy 28
essentials teacher and principal training modules for literacy 29
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coaches, principals, and teachers. 1
(iii) The placement of regional lead literacy coaches to 2
facilitate professional learning for early literacy coaches. 3
Regional lead literacy coaches described in this subparagraph shall 4
provide support for new literacy coaches, building teachers, and 5
administrators, and shall facilitate regional data collection to 6
evaluate the effectiveness of statewide literacy coaches funded 7
under this section. 8
(iv) A provision of $500,000.00 under this subsection for 9
literacy training, modeling, coaching, and feedback for district 10
principals or chief administrators, as applicable. The training 11
described in this subparagraph must use the pre-K and K to 3 12
essential instructional practices in literacy created by the 13
general education leadership network as the framework for all 14
training provided under this subparagraph. 15
(b) By not later than September 1 of each year, the 16
intermediate district described in this subsection, in consultation 17
with grant recipients, shall submit a report to the chairs of the 18
senate and house appropriations subcommittees on school aid, the 19
chairs of the senate and house standing committees responsible for 20
education legislation, the house and senate fiscal agencies, and 21
the state budget director. The report described in this subdivision 22
must include student achievement results in English language arts 23
and survey results with feedback from parents and teachers 24
regarding the initiatives implemented under this subsection. 25
(c) Up to 2% of funds allocated under this subsection may be 26
used by the association representing intermediate district 27
administrators that is in partnership with the intermediate 28
district specified in this subsection to administer this 29
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subsection. 1
(10) In addition to the allocation under subsection (1), from 2
the state school aid fund money appropriated in section 11, there 3
is allocated an amount not to exceed $1,600,000.00 for 2025-2026 to 4
expand the implementation of the literacy and social, emotional, 5
and behavioral components of a multi-tiered system of supports, 6
including positive behavioral interventions and supports, using the 7
Michigan Multi-Tiered System of Supports Technical Assistance 8
Center. Both of the following apply to funds allocated under this 9
subsection: 10
(a) The department shall use funds allocated under this 11
subsection, through an intermediate district, for the purpose of 12
expanding the statewide expertise, technical assistance, and 13
implementation of the multi-tiered system of supports, dyslexia 14
expertise, and evidence-based instructional practices grounded in 15
the science of reading using the Michigan Multi-Tiered System of 16
Supports Technical Assistance Center, a nationally recognized 17
program. In addition, the department shall identify an intermediate 18
district to act as a fiscal agent for these funds. 19
(b) Up to 2% of funds allocated under this subsection may be 20
used by the intermediate district serving as the fiscal agent for 21
these funds to administer this subsection. 22
Sec. 35o. (1) From the state school aid fund money 23
appropriated in section 11, there is allocated an amount not to 24
exceed $6,000,000.00 for 2026-2027 to an intermediate district in 25
which the combined total number of pupils in membership of all of 26
its constituent districts is the fewest among all intermediate 27
districts in this state to improve literacy instruction in 28
alignment with the science of reading and section 1280f of the 29
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revised school code, MCL 380.1280f. 1
(2) Funding under this subsection must be used by the 2
intermediate district described in subsection (1), in partnership 3
with an association that represents intermediate district 4
administrators in this state, to do all of the following: 5
(a) Maintain, and update as necessary based on research, the 6
state's literacy essentials and disciplinary literacy essentials 7
for grades pre-K to 12, including teacher and principal training 8
modules and materials. 9
(b) Lead face-to-face and online professional learning on the 10
state's literacy essentials and disciplinary literacy essentials 11
for grades preK-12 for literacy coaches, principals, and teachers. 12
(c) Lead face-to-face and online professional learning for 13
school and district administrators and leadership teams about 14
leading systems that support effective literacy instruction in all 15
classrooms. 16
(d) Facilitate a statewide network of literacy coaches that 17
ensures consistent use of evidence-based literacy practices 18
including monthly communities of practice, regular coaching 19
intensives, and an annual institute. In addition to completing 20
training from the approved provider of professional learning 21
described in section 35a(5), all literacy coaches funded under 22
section 35a(2) must do all of the following, as applicable: 23
(i) Participate in the statewide coaching network described in 24
this subdivision. 25
(ii) Participate in at least 1 coaching intensive. 26
(iii) Attend the annual institute. 27
(iv) Complete the literacy essentials and coaching modules. 28
(v) For literacy coaches who are new to the network, attend a 29
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new coach kickoff. 1
(e) Place regional lead literacy coaches to facilitate 2
professional learning for literacy coaches. Regional lead literacy 3
coaches described in this subdivision shall provide support for 4
literacy coaches, teachers, and administrators, and shall 5
facilitate regional data collection to evaluate the effectiveness 6
of statewide literacy coaches funded under this section. 7
(f) Meet monthly with the department and the department of 8
lifelong education, advancement, and potential to align efforts and 9
achieve statewide goals to train every educator in the science of 10
reading. 11
(3) By not later than September 1 of each year, the 12
intermediate district described in subsection (1), in consultation 13
with grant recipients, shall submit a report to the chairs of the 14
senate and house appropriations subcommittees on school aid, the 15
chairs of the senate and house standing committees responsible for 16
education legislation, the house and senate fiscal agencies, the 17
state budget director, and the directors of the departments of 18
education and lifelong education, advancement, and potential. The 19
report described in this subdivision must include coaching cycle 20
data by intermediate district, statewide student achievement 21
results in English language arts, and survey results with feedback 22
from teachers and administrators regarding the initiatives 23
implemented under this section. 24
(4) Up to 2% of funds allocated under this section may be used 25
by the association representing intermediate district 26
administrators that is in partnership with the intermediate 27
district as described in subsection (1) to administer this section. 28
Sec. 35p. (1) From the state school aid fund money 29
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appropriated in section 11, there is allocated for 2026-2027 only 1
an amount not to exceed $50,000,000.00 to implement high-impact 2
tutoring programs through eligible tutoring partners in eligible 3
districts. 4
(2) Eligible tutoring partners shall apply for funding in a 5
form and manner determined by the department. An application for 6
funding described in this subsection must include at least all of 7
the following: 8
(a) An identification of a district or intermediate district 9
that will serve as a fiscal agent for awarded funds. 10
(b) A list of district partners that will be recipients of 11
high-impact tutoring from the eligible tutoring partner, including 12
a letter of support from each district that affirms their 13
commitment to ensure alignment with tier 1 instruction, 14
implementation fidelity, including, but not limited to, student 15
usage and frequency, and participation in data sharing and training 16
necessary to maximize outcomes. 17
(c) Projections for the number of students who will be served, 18
broken down by partner district. 19
(d) A description of the efficacious nature of the eligible 20
tutoring partner's program, including the ability of the eligible 21
tutoring partner to hit certain benchmarks and goals, based on 22
evidence. 23
(e) A plan for how the eligible tutoring partner will target 24
high-impact tutoring for the highest need student populations based 25
on some or all of the following criteria: 26
(i) Statewide assessment data. 27
(ii) Screeners or formative assessment scores. 28
(iii) Economically disadvantaged status. 29
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(iv) Special education status. 1
(v) English language learner status. 2
(f) A planned budget for the high-impact tutoring program 3
provided, including the total dollars necessary to serve the 4
identified student population and an estimate of the percentage of 5
awarded dollars that would be directly deployed for high-impact 6
tutoring. 7
(g) A commitment to provide periodic reporting to each 8
district served and to the department, in a form and manner 9
determined by the department, to ensure funds are being spent in 10
accordance with this section. 11
(h) A commitment to return any or all funds awarded if the 12
department determines dollars are used in a way that violates this 13
section. 14
(i) Any additional information required by the department to 15
make informed decisions on awarding competitive grants under this 16
section and to ensure financial stewardship awarded dollars. 17
(3) The department shall award grants to applicants on a 18
competitive basis, using at least all of the following in making 19
award determinations: 20
(a) The cost effectiveness of the application based on the 21
number of students projected to be served, the total requested 22
budget, and the demonstrated outcome capacity of the high-impact 23
tutoring program. 24
(b) The reasonability that the eligible tutoring partner will 25
be able to meet the stated outcome benchmarks. 26
(c) Other criteria, as determined by the department, to ensure 27
grants are awarded to the most impactful applicants. 28
(4) If the amount allocated in subsection (1) is not 29
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sufficient to fully fund all eligible tutoring partners that apply 1
for funding, the department must prioritize grant awards to 2
districts with the lowest levels of literacy proficiency, as 3
determined by student scores on the Michigan student test of 4
educational progress (M-STEP). 5
(5) The department may approve applications from eligible 6
tutoring partners that offer innovative ways to reach students at a 7
lower cost by waiving elements of high-impact tutoring described in 8
subsection (11). This must include, but is not limited to, offering 9
virtual programs. In such cases, the eligible tutoring partner 10
submitting the application must provide evidence of program impact 11
and implement an outcomes-based contract model. 12
(6) It is the intent of the legislature that the work 13
associated with the grant application, oversight, and 14
administration of awards under this section be performed primarily 15
by the eligible tutoring partner and not by districts that have 16
agreed to receive high-impact tutoring. 17
(7) If a district or intermediate district agrees to receive 18
high-impact tutoring from an eligible tutoring partner, the 19
district or intermediate district must do all of the following: 20
(a) Work with the eligible tutoring partner to identify 21
students that would benefit from the program. The district or 22
intermediate district must communicate with parents or legal 23
guardians of identified students to describe the available program, 24
outline possible student outcomes, and encourage student 25
participation. 26
(b) To the extent possible, integrate the high-impact tutoring 27
program with the district's Michigan Integrated Continuous 28
Improvement Process (MICIP) plan. 29
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(c) If the district or intermediate district is the fiscal 1
agent for the eligible tutoring partner, except as otherwise 2
provided in this subdivision, forward the amount awarded to the 3
tutoring partner. The designated fiscal agent may retain up to 0.5% 4
of the funding awarded to the tutoring partner for administrative 5
purposes. 6
(8) All of the following apply to the funds allocated under 7
this section: 8
(a) The department shall make award determinations and 9
notifications by not later than January 15, 2027. 10
(b) The department shall make initial payments to identified 11
fiscal agents by no later than March 1, 2027. Identified fiscal 12
agents shall forward funding to eligible tutoring partners by not 13
later than March 15, 2027. 14
(c) Eligible tutoring partners shall begin deploying services 15
in recipient districts and intermediate districts before the end of 16
the 2026-2027 school year. 17
(9) The funds allocated under this section for 2026-2027 are a 18
work project appropriation, and any unexpended funds for 2026-2027 19
are carried forward into 2027-2028. The purpose of the work project 20
is to provide high-impact tutoring through eligible tutoring 21
partners. The estimated completion date of the work project is 22
September 30, 2031. 23
(10) From the allocation in subsection (1), there is allocated 24
$600,000.00 to the Clinton County Regional Educational Service 25
Agency to work with the Michigan Association of Intermediate School 26
Administrators (MAISA), to do all of the following: 27
(a) Provide a report on high-impact tutoring programs 28
implemented with the funding allocated under subsection (1). 29
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(b) Develop and provide technical assistance to districts in 1
selecting high-impact tutoring strategies and integrating these 2
strategies into district Michigan Integrated Continuous Improvement 3
Process (MICIP) plans. Developing and providing technical 4
assistance may include the design, review, and integration of 5
eligible tutoring programs within the MiStrategyBank. 6
(c) Collect, aggregate, and report data in collaboration with 7
the MAISA Michigan Collaborative Hub. An amount not to exceed 8
$300,000.00 of the funds allocated under this subsection may be 9
used for this purpose. 10
(d) Provide an annual report of the impact of high-impact 11
tutoring programs to the office of the governor, the senate and 12
house education committees, the senate and house appropriations 13
subcommittees on school aid, and the state budget director. 14
(11) As used in this section: 15
(a) "Eligible tutoring partner" means a tutoring provider, 16
including, but not limited to, a tutoring provider created by for-17
profit vendors, nonprofit vendors, intermediate districts, 18
districts, and the Michigan Schools for the Deaf and Blind, that 19
provides high-impact tutoring and meets at least 1 of the 20
following: 21
(i) Is included on the ProvenTutoring list maintained by the 22
Center for Research and Reform in Education at Johns Hopkins 23
University. 24
(ii) Has a Tutoring Program Design Badge as awarded by the 25
National Student Support Accelerator, a program of the SCALE 26
Initiative at Stanford University. 27
(iii) Is a vetted high-impact tutoring program included in the 28
MiStrategyBank. If necessary, the Michigan Association of 29
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Intermediate School Administrators may convene a committee to 1
review tutoring programs for inclusion in the MiStrategyBank. 2
(b) "High-impact tutoring" means, except as otherwise provided 3
in this section, in-person tutoring that meets all of the 4
following: 5
(i) Occurs during the school day. 6
(ii) Is individualized, with tutor ratios not higher than 1:4. 7
(iii) Provides intensive support with a minimum of 2 sessions 8
per week. 9
(iv) Uses a structured, evidence-based curriculum designed for 10
tutoring, with formative assessments to track progress. 11
(v) Uses trained tutors. 12
Sec. 35q. (1) By not later than March 1, 2027, the department, 13
in collaboration with the department of lifelong education, 14
advancement, and potential, and the center, shall publish to a 15
publicly accessible location on its website and shall update 16
periodically thereafter, as new data becomes available, a literacy 17
achievement and opportunity transparency dashboard that includes at 18
least the following: 19
(a) The percentage of children in this state with access to 20
free, full-day prekindergarten opportunities. 21
(b) The percentage of pre-K to grade 5 educators in this state 22
who are trained in the science of reading. 23
(c) The percentage of pre-K to grade 5 classrooms in this 24
state using curriculum and assessments aligned with the science of 25
reading. 26
(d) The percentage of parents and legal guardians in this 27
state receiving clear communication from their school about their 28
child's reading action plans and the ability to get extra support 29
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as needed. 1
(e) Literacy-related results, including multiyear trend data, 2
from the following state assessments: 3
(i) The grade 3 Michigan student test of educational progress 4
(M-STEP). 5
(ii) The grade 7 Michigan student test of educational progress 6
(M-STEP). 7
(iii) The SAT. 8
(iv) The National Assessment of Educational Progress (NAEP). 9
(f) Additional metrics that help the public and policymakers 10
track statewide literacy progress. 11
(g) A summary of activities the state is taking to improve 12
literacy outcomes. 13
(2) The data published under subsection (1) must be 14
disaggregated by district and school demographics where possible. 15
Sec. 39. (1) An eligible applicant receiving funds under 16
section 32d shall submit an application, in a form and manner 17
prescribed by the department of lifelong education, advancement, 18
and potential, by a date specified by the department of lifelong 19
education, advancement, and potential in the immediately preceding 20
fiscal year. An eligible applicant is not required to amend the 21
applicant's current accounting cycle or adopt this state's fiscal 22
year accounting cycle in accounting for financial transactions 23
under this section. The application must include all of the 24
following: 25
(a) The estimated total number of age-eligible children in the 26
community, as provided to the applicant by the department of 27
lifelong education, advancement, and potential utilizing the most 28
recent population data available from the American Community Survey 29
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conducted by the United States Census Bureau. The department of 1
lifelong education, advancement, and potential shall ensure that it 2
provides updated American Community Survey population data at least 3
once every 3 years. 4
(b) The estimated number of age-eligible children in the 5
community who are being served exclusively by Head Start programs 6
operating in the community. 7
(c) The number of children whom the applicant will have the 8
capacity to serve in each eligible great start readiness program 9
option who meet the age-eligible criteria of section 32d. 10
(2) The great start readiness target foundation amount for 11
2025-2026 2026-2027 is $10,650.00.$11,290.00. 12
(3) After notification of funding allocations, an applicant 13
receiving funds under section 32d shall also submit an 14
implementation plan for approval, in a form and manner prescribed 15
by the department of lifelong education, advancement, and 16
potential, by a date specified by the department of lifelong 17
education, advancement, and potential, that details how the 18
applicant complies with the program components established by the 19
department of lifelong education, advancement, and potential under 20
section 32d. 21
(4) Subject to subsection (5), the initial allocation to each 22
eligible applicant under section 32d is equal to the sum of the 23
following: 24
(a) The number of children in the current school year served 25
in a program determined by the department of lifelong education, 26
advancement, and potential to be a school-day program multiplied by 27
the great start readiness target foundation. 28
(b) The number of children in the current school year served 29
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in a program determined by the department of lifelong education, 1
advancement, and potential to be a part-day program or a school-day 2
blended with Head Start multiplied by the great start readiness 3
target foundation divided by 2. 4
(c) The total number of children in the current school year 5
served in a program determined by the department of lifelong 6
education, advancement, and potential to be an extended program 7
multiplied by the great start readiness target foundation 8
multiplied by 1.2. 9
(d) The number of children in the current school year served 10
in a program determined by the department of lifelong education, 11
advancement, and potential to be an extended program blended with 12
Head Start or a part-day extended program multiplied by the great 13
start readiness target foundation multiplied by 0.6. 14
(5) Subject to subsection (6), if the calculations under 15
subsection (4) result in a total allocation exceeding the amount 16
available as allocated or appropriated under section 32d(2), 17
initial allocations to each eligible applicant under section 32d 18
are calculated as the sum of the following: 19
(a) An amount equal to the calculations described in 20
subsection (4) but using for those calculations the lesser of the 21
number of children served in the immediately preceding fiscal year 22
or the number of children the applicant has the capacity to serve 23
in the current fiscal year instead of the number of children served 24
in the current fiscal year. 25
(b) An amount equal to the remaining available dollars after 26
calculations in subdivision (a) distributed proportionately to 27
eligible applicants where calculations under subdivision (a) are 28
less than the amount originally calculated under subsection (4). 29
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(6) If the calculations under subsection (5) result in a total 1
allocation exceeding the amount available as allocated or 2
appropriated under section 32d(2), the initial allocation to each 3
eligible applicant is the amount calculated under subsection (4) 4
prorated on an equal percentage basis. 5
(7) If, taking into account the total amount to be allocated 6
to the applicant as calculated under this section, an applicant 7
determines that it is able to include additional eligible children 8
in the great start readiness program without additional funds under 9
section 32d, the applicant may include additional eligible children 10
but does not receive additional funding under section 32d for those 11
children. 12
(8) The department of lifelong education, advancement, and 13
potential shall review the program components under section 32d and 14
under this section at least biennially. The department of lifelong 15
education, advancement, and potential also shall convene a 16
committee of internal and external stakeholders at least once every 17
5 years to ensure that the funding structure under this section 18
reflects current system needs under section 32d. 19
Sec. 39a. (1) From the federal funds appropriated in section 20
11, there is allocated for 2025-2026 2026-2027 to districts, 21
intermediate districts, and other eligible entities all available 22
federal funding, estimated at $824,700,000.00, for the federal 23
programs under the no child left behind act of 2001, Public Law 24
107-110, or the every student succeeds act, Public Law 114-95. 25
These funds are allocated as follows: 26
(a) An amount estimated at $1,200,000.00 for 2025-2026 2026-27
2027 to provide students with drug- and violence-prevention 28
programs and to implement strategies to improve school safety, 29
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funded from DED-OESE, drug-free schools and communities funds. 1
(b) An amount estimated at $100,000,000.00 for 2025-2026 for 2
the purpose of preparing, training, and recruiting high-quality 3
teachers and class size reduction, funded from DED-OESE, improving 4
teacher quality funds. 5
(c) An amount estimated at $13,000,000.00 for 2025-2026 2026-6
2027 for programs to teach English to limited English proficient 7
(LEP) children, funded from DED-OESE, language acquisition state 8
grant funds. 9
(d) An amount estimated at $2,800,000.00 for 2025-2026 2026-10
2027 for rural and low-income schools, funded from DED-OESE, rural 11
and low income school funds. 12
(e) An amount estimated at $585,000,000.00 for 2025-2026 2026-13
2027 to provide supplemental programs to enable educationally 14
disadvantaged children to meet challenging academic standards, 15
funded from DED-OESE, title I, disadvantaged children funds. 16
(f) An amount estimated at $9,200,000.00 for 2025-2026 2026-17
2027 for the purpose of identifying and serving migrant children, 18
funded from DED-OESE, title I, migrant education funds. 19
(g) An amount estimated at $40,400,000.00 for 2025-2026 2026-20
2027 for the purpose of providing high-quality extended learning 21
opportunities, after school and during the summer, for children in 22
low-performing schools, funded from DED-OESE, twenty-first century 23
community learning center funds. 24
(h) An amount estimated at $14,000,000.00 for 2025-2026 2026-25
2027 to help support local school improvement efforts, funded from 26
DED-OESE, title I, local school improvement grants. 27
(i) An amount estimated at $55,000,000.00 for 2025-2026 2026-28
2027 to improve the academic achievement of students, funded from 29
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DED-OESE, title IV, student support and academic enrichment grants. 1
(j) An amount estimated at $3,100,000.00 for 2025-2026 2026-2
2027 for literacy programs that advance literacy skills for 3
students from birth through grade 12, including, but not limited 4
to, English-proficient students and students with disabilities, 5
funded from DED-OESE, striving readers comprehensive literacy 6
program. 7
(k) An amount estimated at $1,000,000.00 for 2025-2026 2026-8
2027 for grants to support and demonstrate innovative partnerships 9
to train school-based mental health service providers, funded from 10
DED-OESE, mental health service professional demonstration grant 11
program. 12
(2) From the federal funds appropriated in section 11, there 13
is allocated to districts, intermediate districts, and other 14
eligible entities all available federal funding, estimated at 15
$66,415,000.00 for 2025-2026 2026-2027 for the following programs 16
that are funded by federal grants: 17
(a) An amount estimated at $3,000,000.00 for 2025-2026 2026-18
2027 to provide services to homeless children and youth, funded 19
from DED-OVAE, homeless children and youth funds. 20
(b) An amount estimated at $30,000,000.00 for 2025-2026 2026-21
2027 for providing career and technical education services to 22
pupils, funded from DED-OVAE, basic grants to states. 23
(c) An amount estimated at $14,000,000.00 for 2025-2026 2026-24
2027 for the Michigan charter school subgrant program, funded from 25
DED–OII, public charter schools program funds. 26
(d) An amount estimated at $17,700,000.00 for 2025-2026 2026-27
2027 for the purpose of promoting and expanding high-quality 28
preschool services, funded from HHS–OCC, preschool development 29
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funds. 1
(e) An amount estimated at $1,715,000.00 for 2025-2026 2026-2
2027 for the purpose of addressing priority substance abuse 3
treatment, prevention, and mental health needs, funded from HHS-4
SAMHSA. 5
(3) The department, or, for subsections (1)(g) and (2)(d), the 6
department of lifelong education, advancement, and potential, shall 7
distribute all federal funds allocated under this section in 8
accordance with federal law and with flexibility provisions 9
outlined in Public Law 107-116, and in the education flexibility 10
partnership act of 1999, Public Law 106-25. Notwithstanding section 11
17b, the department or the department of lifelong education, 12
advancement, and potential, as applicable, shall make payments of 13
federal funds to districts, intermediate districts, and other 14
eligible entities under this section on a schedule determined by 15
the department. 16
(4) For the purposes of applying for federal grants 17
appropriated under this article, the department, or, for 18
subsections (1)(g) and (2)(d), the department of lifelong 19
education, advancement, and potential, shall allow an intermediate 20
district to submit a consortium application on behalf of 2 or more 21
districts with the agreement of those districts as appropriate 22
according to federal rules and guidelines. 23
(5) For the purposes of funding federal title I grants under 24
this article, in addition to any other federal grants for which the 25
strict discipline academy is eligible, the department, or, for 26
subsections (1)(g) and (2)(d), the department of lifelong 27
education, advancement, and potential, shall allocate to a strict 28
discipline academy out of title I, part A an amount equal to what 29
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the strict discipline academy would have received if included and 1
calculated under title I, part D, or what it would receive under 2
the formula allocation under title I, part A, whichever is greater. 3
(6) As used in this section: 4
(a) "DED" means the United States Department of Education. 5
(b) "DED-OESE" means the DED Office of Elementary and 6
Secondary Education. 7
(c) "DED-OII" means the DED Office of Innovation and 8
Improvement. 9
(d) "DED-OVAE" means the DED Office of Vocational and Adult 10
Education. 11
(e) "HHS" means the United States Department of Health and 12
Human Services. 13
(f) "HHS-OCC" means the HHS Office of Child Care. 14
(g) "HHS-SAMHSA" means the HHS Substance Abuse and Mental 15
Health Services Project. 16
Sec. 51a. (1) From the state school aid fund money in section 17
11, there is allocated an amount not to exceed $2,028,696,100.00 18
for 2024-2025 and there is allocated an amount not to exceed 19
$2,219,596,100.00 $2,126,096,100.00 for 2025-2026 from and there is 20
allocated an amount not to exceed $2,280,137,500.00 for 2026-2027. 21
From state sources and all available federal funding under sections 22
1411 to 1419 of part B of the individuals with disabilities 23
education act, 20 USC 1411 to 1419, there is allocated an amount 24
estimated at $450,000,000.00 for 2024-2025 and $500,000,000.00 for 25
2025-2026 and $500,000,000.00 for 2026-2027, plus any carryover 26
federal funds from previous year appropriations. The allocations 27
under this subsection are for the purpose of reimbursing districts 28
and intermediate districts for special education programs, 29
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services, and special education personnel as prescribed in article 1
3 of the revised school code, MCL 380.1701 to 380.1761; net tuition 2
payments made by intermediate districts to the Michigan Schools for 3
the Deaf and Blind; and special education programs and services for 4
pupils who are eligible for special education programs and services 5
according to statute or rule. For meeting the costs of special 6
education programs and services not reimbursed under this article, 7
a district or intermediate district may use money in general funds 8
or special education funds, not otherwise restricted, or 9
contributions from districts to intermediate districts, tuition 10
payments, gifts and contributions from individuals or other 11
entities, or federal funds that may be available for this purpose, 12
as determined by the intermediate district plan prepared under 13
article 3 of the revised school code, MCL 380.1701 to 380.1761. 14
Notwithstanding section 17b, the department shall make payments of 15
federal funds to districts, intermediate districts, and other 16
eligible entities under this section on a schedule determined by 17
the department. 18
(2) From the funds allocated under subsection (1), there is 19
allocated the amount necessary, estimated at $441,400,000.00 for 20
2024-2025 and $492,400,000.00 $457,800,000.00 for 2025-2026 and 21
$495,100,000.00 for 2026-2027, for payments toward reimbursing 22
districts and intermediate districts for 28.6138% of total approved 23
costs of special education, excluding costs reimbursed under 24
section 53a, and 70.4165% of total approved costs of special 25
education transportation. 26
(3) If the department determines that the amount allocated for 27
a fiscal year to a district or intermediate district under 28
subsection (2) is insufficient to fulfill the specified percentages 29
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in subsection (2), the department shall pay the shortfall to the 1
district or intermediate district during the fiscal year beginning 2
on the October 1 following the determination. If the department 3
determines that the amount allocated for a fiscal year to a 4
district or intermediate district under subsection (2) exceeds the 5
sum of the amount necessary to fulfill the specified percentages in 6
subsection (2), the department shall deduct the amount of the 7
excess from the district's or intermediate district's payments 8
under this article for the fiscal year beginning on the October 1 9
following the determination. 10
(4) State funds are allocated on a total approved cost basis. 11
Federal funds are allocated under applicable federal requirements. 12
(5) From the amount allocated in subsection (1), there is 13
allocated an amount not to exceed $3,200,000.00 for 2024-2025 and 14
2025-2026 and 2026-2027 to reimburse 100% of the net increase in 15
necessary costs incurred by a district or intermediate district in 16
implementing the revisions in the administrative rules for special 17
education that became effective on July 1, 1987. As used in this 18
subsection, "net increase in necessary costs" means the necessary 19
additional costs incurred solely because of new or revised 20
requirements in the administrative rules minus cost savings 21
permitted in implementing the revised rules. The department shall 22
determine net increase in necessary costs in a manner specified by 23
the department. 24
(6) For purposes of this section and sections 51b to 58, all 25
of the following apply: 26
(a) "Total approved costs of special education" are determined 27
in a manner specified by the department and may include indirect 28
costs, but must not exceed 115% of approved direct costs for 29
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section 52 and section 53a programs. The total approved costs 1
include salary and other compensation for all approved special 2
education personnel for the program, including payments for Social 3
Security and Medicare and public school employee retirement system 4
contributions. The total approved costs do not include salaries or 5
other compensation paid to administrative personnel who are not 6
special education personnel as that term is defined in section 6 of 7
the revised school code, MCL 380.6. Costs reimbursed by federal 8
funds, other than those federal funds included in the allocation 9
made under this article, are not included. Special education 10
approved personnel not utilized full time in the evaluation of 11
students or in the delivery of special education programs, 12
ancillary, and other related services are reimbursed under this 13
section only for that portion of time actually spent providing 14
these programs and services, with the exception of special 15
education programs and services provided to youth placed in child 16
caring institutions or juvenile detention programs approved by the 17
department to provide an on-grounds education program. 18
(b) Reimbursement for ancillary and other related services, as 19
that term is defined by R 340.1701c of the Michigan Administrative 20
Code, is not provided when those services are covered by and 21
available through private group health insurance carriers or 22
federal reimbursed program sources unless the department and 23
district or intermediate district agree otherwise and that 24
agreement is approved by the state budget director. Expenses, other 25
than the incidental expense of filing, must not be borne by the 26
parent. In addition, the filing of claims must not delay the 27
education of a pupil. A district or intermediate district is 28
responsible for payment of a deductible amount and for an advance 29
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payment required until the time a claim is paid. 1
(c) If an intermediate district purchases a special education 2
pupil transportation service from a constituent district that was 3
previously purchased from a private entity; if the purchase from 4
the constituent district is at a lower cost, adjusted for changes 5
in fuel costs; and if the cost shift from the intermediate district 6
to the constituent does not result in any net change in the revenue 7
the constituent district receives from payments under sections 22b 8
and 51c, then upon application by the intermediate district, the 9
department shall direct the intermediate district to continue to 10
report the cost associated with the specific identified special 11
education pupil transportation service and shall adjust the costs 12
reported by the constituent district to remove the cost associated 13
with that specific service. 14
(7) A pupil who is enrolled in a full-time special education 15
program conducted or administered by an intermediate district or a 16
pupil who is enrolled in the Michigan Schools for the Deaf and 17
Blind is not included in the membership count of a district, but is 18
counted in membership in the intermediate district of residence. 19
(8) Special education personnel transferred from 1 district to 20
another to implement the revised school code are entitled to the 21
rights, benefits, and tenure to which the individual would 22
otherwise be entitled had that individual been employed by the 23
receiving district originally. 24
(9) If a district or intermediate district uses money received 25
under this section for a purpose other than the purpose or purposes 26
for which the money is allocated, the department may require the 27
district or intermediate district to refund the amount of money 28
received. The department shall deposit money that is refunded in 29
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the state treasury to the credit of the state school aid fund. 1
(10) From the funds allocated in subsection (1), there is 2
allocated the amount necessary, estimated at $1,600,000.00 for 3
2024-2025 and estimated at $1,600,000.00 $1,900,000.00 for 2025-4
2026 and estimated at $1,900,000.00 for 2026-2027, to pay the 5
foundation allowances for pupils described in this subsection. The 6
department shall calculate the allocation to a district under this 7
subsection by multiplying the number of pupils described in this 8
subsection who are counted in membership in the district times the 9
sum of the foundation allowance under section 20 of the pupil's 10
district of residence, plus the amount of the district's per-pupil 11
allocation under section 20m, not to exceed the target foundation 12
allowance for the current fiscal year, or, for a pupil described in 13
this subsection who is counted in membership in a district that is 14
a public school academy, times an amount equal to the amount per 15
membership pupil under section 20(6). The department shall 16
calculate the allocation to an intermediate district under this 17
subsection in the same manner as for a district, using the 18
foundation allowance under section 20 of the pupil's district of 19
residence not to exceed the target foundation allowance for the 20
current fiscal year and that district's per-pupil allocation under 21
section 20m. This subsection applies to all of the following 22
pupils: 23
(a) Pupils described in section 53a. 24
(b) Pupils counted in membership in an intermediate district 25
who are not special education pupils and are served by the 26
intermediate district in a juvenile detention or child caring 27
facility. 28
(c) Pupils with an emotional impairment counted in membership 29
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by an intermediate district and provided educational services by 1
the department of health and human services. 2
(11) If it is determined that funds allocated under subsection 3
(2) or (10) or under section 51c will not be expended, funds up to 4
the amount necessary and available may be used to supplement the 5
allocations under subsection (2) or (10) or under section 51c to 6
fully fund those allocations. After payments under subsections (2) 7
and (10) and section 51c, the department shall expend the remaining 8
funds from the allocation in subsection (1) in the following order: 9
(a) One hundred percent of the reimbursement required under 10
section 53a. 11
(b) One hundred percent of the reimbursement required under 12
subsection (5). 13
(c) One hundred percent of the payment required under section 14
54. 15
(d) One hundred percent of the payments under section 56. 16
(12) The allocations under subsections (2) and (10) are 17
allocations to intermediate districts only and are not allocations 18
to districts, but instead are calculations used only to determine 19
the state payments under section 22b. 20
(13) If a public school academy that is not a cyber school, as 21
that term is defined in section 551 of the revised school code, MCL 22
380.551, enrolls under this section a pupil who resides outside of 23
the intermediate district in which the public school academy is 24
located and who is eligible for special education programs and 25
services according to statute or rule, or who is a child with a 26
disability, as that term is defined under the individuals with 27
disabilities education act, Public Law 108-446, the intermediate 28
district in which the public school academy is located and the 29
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public school academy shall enter into a written agreement with the 1
intermediate district in which the pupil resides for the purpose of 2
providing the pupil with a free appropriate public education, and 3
the written agreement must include at least an agreement on the 4
responsibility for the payment of the added costs of special 5
education programs and services for the pupil. If the public school 6
academy that enrolls the pupil does not enter into an agreement 7
under this subsection, the public school academy shall not charge 8
the pupil's resident intermediate district or the intermediate 9
district in which the public school academy is located the added 10
costs of special education programs and services for the pupil, and 11
the public school academy is not eligible for any payouts based on 12
the funding formula outlined in the resident or nonresident 13
intermediate district's plan. If a pupil is not enrolled in a 14
public school academy under this subsection, the provision of 15
special education programs and services and the payment of the 16
added costs of special education programs and services for a pupil 17
described in this subsection are the responsibility of the district 18
and intermediate district in which the pupil resides. 19
(14) For the purpose of receiving its federal allocation under 20
part B of the individuals with disabilities education act, Public 21
Law 108-446, a public school academy that is a cyber school, as 22
that term is defined in section 551 of the revised school code, MCL 23
380.551, and is in compliance with section 553a of the revised 24
school code, MCL 380.553a, directly receives the federal allocation 25
under part B of the individuals with disabilities education act, 26
Public Law 108-446, from the intermediate district in which the 27
cyber school is located, as the subrecipient. If the intermediate 28
district does not distribute the funds described in this subsection 29
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to the cyber school by the part B application due date of July 1, 1
the department may distribute the funds described in this 2
subsection directly to the cyber school according to the formula 3
prescribed in 34 CFR 300.705 and 34 CFR 300.816. Beginning July 1, 4
2021, this subsection is subject to section 8c. It is the intent of 5
the legislature that the immediately preceding sentence apply 6
retroactively and is effective July 1, 2021. 7
(15) For a public school academy that is a cyber school, as 8
that term is defined in section 551 of the revised school code, MCL 9
380.551, and is in compliance with section 553a of the revised 10
school code, MCL 380.553a, that enrolls a pupil under this section, 11
the intermediate district in which the cyber school is located 12
shall ensure that the cyber school complies with sections 1701a, 13
1703, 1704, 1751, 1752, 1756, and 1757 of the revised school code, 14
MCL 380.1701a, 380.1703, 380.1704, 380.1751, 380.1752, 380.1756, 15
and 380.1757; applicable rules; and the individuals with 16
disabilities education act, Public Law 108-446. Beginning July 1, 17
2021, this subsection is subject to section 8c. It is the intent of 18
the legislature that the immediately preceding sentence apply 19
retroactively and is effective July 1, 2021. 20
(16) For the purposes of this section, the department or the 21
center shall only require a district or intermediate district to 22
report information that is not already available from the financial 23
information database maintained by the center. 24
Sec. 51c. As required by the court in the consolidated cases 25
known as Durant v State of Michigan, 456 Mich 175 (1997), from the 26
allocation under section 51a(1), there is allocated for 2024-2025 27
and for 2025-2026 and for 2026-2027 the amount necessary, estimated 28
at $993,100,000.00 for 2024-2025 and $1,107,900,000.00 29
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$1,055,000,000.00 for 2025-2026 and $1,140,700,000.00 for 2026-1
2027, for payments to reimburse districts for 28.6138% of total 2
approved costs of special education excluding costs reimbursed 3
under section 53a, and 70.4165% of total approved costs of special 4
education transportation. Funds allocated under this section that 5
are not expended in the fiscal year for which they were allocated, 6
as determined by the department, may be used to supplement the 7
allocations under sections 22a and 22b to fully fund those 8
allocations for the same fiscal year. 9
Sec. 51d. (1) From the federal funds appropriated in section 10
11, there is allocated for 2025-2026 2026-2027 all available 11
federal funding, estimated at $83,000,000.00, for special education 12
programs and services that are funded by federal grants. The 13
department shall distribute all federal funds allocated under this 14
section in accordance with federal law. Notwithstanding section 15
17b, the department shall make payments of federal funds to 16
districts, intermediate districts, and other eligible entities 17
under this section on a schedule determined by the department. 18
(2) From the federal funds allocated under subsection (1), the 19
following amounts are allocated: 20
(a) For 2025-2026, 2026-2027, an amount estimated at 21
$14,000,000.00 for handicapped infants and toddlers, funded from 22
DED-OSERS, handicapped infants and toddlers funds. 23
(b) For 2025-2026, 2026-2027, an amount estimated at 24
$14,000,000.00 for preschool grants under Public Law 94-142, funded 25
from DED-OSERS, handicapped preschool incentive funds. 26
(c) For 2025-2026, 2026-2027, an amount estimated at 27
$55,000,000.00 for special education programs funded by DED-OSERS, 28
handicapped program, individuals with disabilities act funds. 29
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(3) As used in this section, "DED-OSERS" means the United 1
States Department of Education Office of Special Education and 2
Rehabilitative Services. 3
Sec. 51e. (1) From the allocation under section 51a(1), there 4
is allocated for the amount necessary, estimated at $503,000,000.00 5
for 2024-2025 and $528,100,000.00 $521,800,000.00 for 2025-2026 and 6
$535,000,000.00 for 2026-2027, for payments to districts and 7
intermediate districts for 100% of foundation allowance costs 8
associated with special education pupils. 9
(2) The department shall calculate the amount allocated to a 10
district under this section by multiplying the district's special 11
education pupil membership, excluding pupils described in section 12
51a(11), times 100% of the foundation allowance under section 20 of 13
the pupil's district of residence, plus 100% of the amount of the 14
district's per-pupil allocation under section 20m, not to exceed 15
100% of the target foundation allowance for the current fiscal 16
year, or, for a special education pupil in membership in a district 17
that is a public school academy, times an amount equal to 100% of 18
the amount per membership pupil calculated under section 20(6). For 19
an intermediate district, the amount allocated under this 20
subsection is an amount per special education membership pupil, 21
excluding pupils described in section 51a(11), and is calculated in 22
the same manner as for a district, using 100% of the foundation 23
allowance under section 20 of the pupil's district of residence, 24
not to exceed 100% of the target foundation allowance for the 25
current fiscal year, and 100% of that district's per-pupil 26
allocation under section 20m. 27
Sec. 51g. From the general fund money appropriated in section 28
11, $3,000,000.00 is allocated for 2025-2026 2026-2027 to an 29
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association for administrators of special education services to 1
develop content for use by special education students, teachers, 2
and others. Any content that is developed as described in this 3
section must be accessible throughout this state. Funds received by 4
an association under this section may be used to support the 5
development of assessment tools to measure the needs of students 6
with special education needs in remote learning environments and 7
the effectiveness of various educational methods and tools, in 8
collaboration with the department. Funds under this section may 9
also be utilized to identify any available federal funds for 10
research related to special education in remote learning. 11
Sec. 51i. (1) It is the intent of the legislature that, 12
beginning in the fiscal year ending September 30, 2028, a weighted 13
special education funding formula be implemented to recognize the 14
higher costs associated with certain student needs. 15
(2) It is the intent of the legislature that a weighted 16
special education funding formula described in subsection (1) be 17
implemented in a way to work toward the following target weights 18
for payments to districts and intermediate districts for identified 19
special education students: 20
(a) Speech and language impairment, 1.1. 21
(b) Specific learning disability, 1.1. 22
(c) Other health impairment multiplied, 1.8. 23
(d) Physical impairment multiplied, 3.1. 24
(e) Severe multiple impairments, 3.1. 25
(f) Cognitive impairment, 3.1. 26
(g) Deaf or hard of hearing multiplied, 3.1. 27
(h) Deaf-blindness, 3.1. 28
(i) Emotional impairment multiplied, 3.8. 29
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(j) Visual impairment, 3.8. 1
(k) Early childhood developmental delays, 3.8. 2
(l) Autism spectrum disorder, 3.8. 3
(m) Traumatic brain injury, 3.8. 4
(3) It is the intent of the legislature that payments to 5
districts and intermediate districts under the formula described in 6
this section be adjusted to take into account available federal 7
revenue and local revenue generating capacity of recipient 8
districts and intermediate districts. 9
Sec. 53a. (1) For districts, reimbursement for pupils 10
described in subsection (2) is 100% of the total approved costs of 11
operating special education programs and services approved by the 12
department and included in the intermediate district plan adopted 13
under article 3 of the revised school code, MCL 380.1701 to 14
380.1761, minus the district's foundation allowance calculated 15
under section 20 and minus the district's per-pupil allocation 16
under section 20m. For intermediate districts, the department shall 17
calculate reimbursement for pupils described in subsection (2) in 18
the same manner as for a district, using the foundation allowance 19
under section 20 of the pupil's district of residence, not to 20
exceed the target foundation allowance under section 20 for the 21
current fiscal year plus the amount of the district's per-pupil 22
allocation under section 20m. 23
(2) Reimbursement under subsection (1) is for the following 24
special education pupils: 25
(a) Pupils assigned to a district or intermediate district 26
through the community placement program of the courts or a state 27
agency, if the pupil was a resident of another intermediate 28
district at the time the pupil came under the jurisdiction of the 29
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court or a state agency. 1
(b) Pupils who are residents of institutions operated by the 2
department of health and human services. 3
(c) Pupils who are former residents of department of community 4
health institutions for the developmentally disabled who are placed 5
in community settings other than the pupil's home. 6
(d) Pupils enrolled in a department-approved on-grounds 7
educational program longer than 180 days, but not longer than 233 8
days, at a residential child care institution, if the child care 9
institution offered in 1991-92 an on-grounds educational program 10
longer than 180 days but not longer than 233 days. 11
(e) Pupils placed in a district by a parent for the purpose of 12
seeking a suitable home, if the parent does not reside in the same 13
intermediate district as the district in which the pupil is placed. 14
(3) Only those costs that are clearly and directly 15
attributable to educational programs for pupils described in 16
subsection (2), and that would not have been incurred if the pupils 17
were not being educated in a district or intermediate district, are 18
reimbursable under this section. 19
(4) The costs of transportation are funded under this section 20
and are not reimbursed under section 58. 21
(5) The department shall not allocate more than $10,500,000.00 22
of the allocation for 2025-2026 2026-2027 in section 51a(1) under 23
this section. 24
Sec. 54. Each intermediate district receives an amount per 25
pupil for each pupil in attendance at the Michigan Schools for the 26
Deaf and Blind. The amount is proportionate to the total 27
instructional cost at each school. The department shall not 28
allocate more than $1,688,000.00 $4,529,400.00 of the allocation 29
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for 2025-2026 2026-2027 in section 51a(1) under this section. 1
Sec. 54b. From the state school aid fund money appropriated in 2
section 11, there is allocated an amount not to exceed 3
$1,600,000.00 for 2026-2027 to expand the implementation of the 4
literacy and social, emotional, and behavioral components of a 5
multi-tiered system of supports, including positive behavioral 6
interventions and supports, using the Michigan Multi-Tiered System 7
of Supports Technical Assistance Center. All of the following apply 8
to funds allocated under this section: 9
(a) The department shall use funds allocated under this 10
section, through an intermediate district, for the purpose of 11
expanding the statewide expertise, technical assistance, and 12
implementation of the multi-tiered system of supports, dyslexia 13
expertise, and evidence-based instructional practices grounded in 14
the science of reading using the Michigan Multi-Tiered System of 15
Supports Technical Assistance Center. The department shall identify 16
an intermediate district to act as a fiscal agent for funds 17
allocated under this section. 18
(b) The department shall provide a report each year to the 19
state budget director, the house and senate appropriations 20
subcommittees on school aid, and the house and senate fiscal 21
agencies that details the following: 22
(i) The progress being made by districts in implementing multi-23
tiered systems of supports. 24
(ii) The progress being made by districts in providing reading 25
intervention services described in section 1280f of the revised 26
school code, MCL 380.1280f, for pupils in grades K to 12. 27
(iii) Other information the department determines would be 28
useful to understand the status of districts' implementation of 29
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effective multi-tiered systems of supports and reading intervention 1
programs. 2
(c) Up to 2% of funds allocated under this section may be used 3
by the intermediate district serving as the fiscal agent for these 4
funds to administer this section. 5
Sec. 54d. (1) From the state school aid fund money 6
appropriated in section 11, there is allocated an amount not to 7
exceed $23,670,700.00 $25,120,700.00 for 2025-2026 2026-2027 to 8
intermediate districts for the purpose of providing state early on 9
services programs for children from birth to 3 years of age with a 10
developmental delay or a disability, or both, and their families, 11
as described in the early on Michigan state plan, as approved by 12
the department of lifelong education, advancement, and potential. 13
(2) To be eligible to receive grant funding under this 14
section, each intermediate district must apply in a form and manner 15
determined by the department of lifelong education, advancement, 16
and potential. 17
(3) The grant funding allocated under this section must be 18
used to increase early on services and resources available to 19
children that demonstrate developmental delays to help prepare them 20
for success as they enter school. State early on services include 21
evaluating and providing early intervention services for eligible 22
infants and toddlers and their families to address developmental 23
delays, including those affecting physical, cognitive, 24
communication, adaptive, social, or emotional development. Grant 25
funds must not be used to supplant existing services that are 26
currently being provided. 27
(4) The department of lifelong education, advancement, and 28
potential shall distribute the funds allocated under subsection (1) 29
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to intermediate districts according to the department of lifelong 1
education, advancement, and potential's early on funding formula 2
utilized to distribute the federal award to Michigan under part C 3
of the individuals with disabilities education act, Public Law 108-4
446. Funds received under this section must not supplant existing 5
funds or resources allocated for early on early intervention 6
services. An intermediate district receiving funds under this 7
section shall maximize the capture of Medicaid funds to support 8
early on early intervention services to the extent possible. 9
(5) Each intermediate district that receives funds under this 10
section shall report data and other information to the department 11
of lifelong education, advancement, and potential in a form, 12
manner, and frequency prescribed by the department of lifelong 13
education, advancement, and potential to allow for monitoring and 14
evaluation of the program and to ensure that the children described 15
in subsection (1) received appropriate levels and types of services 16
delivered by qualified personnel, based on the individual needs of 17
the children and their families. 18
(6) Notwithstanding section 17b, the department of lifelong 19
education, advancement, and potential shall make payments under 20
this section on a schedule determined by the department of lifelong 21
education, advancement, and potential. 22
(7) Grant funds awarded and allocated to an intermediate 23
district under this section must be expended by the grant recipient 24
before June 30 of the fiscal year immediately following the fiscal 25
year in which the funds were received. 26
Sec. 56. (1) For the purposes of this section: 27
(a) "Membership" means for a particular fiscal year the total 28
membership of the intermediate district and the districts 29
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constituent to the intermediate district, except that if a district 1
has elected not to come under part 30 of the revised school code, 2
MCL 380.1711 to 380.1741, membership of the district is not 3
included in the membership of the intermediate district. 4
(a) "Capped local special education property tax revenue" 5
means the amount of revenue that would be received if an 6
intermediate district levied the maximum millage rate permitted for 7
that intermediate district under section 1724a of the revised 8
school code, MCL 380.1724a, capped at the statewide average special 9
education millage rate. 10
(b) "Membership" means for a particular fiscal year the total 11
membership of the intermediate district and the districts 12
constituent to the intermediate district, except that if a district 13
has elected not to come under part 30 of the revised school code, 14
MCL 380.1711 to 380.1741, membership of the district is not 15
included in the membership of the intermediate district. 16
(c) (b) "Millage levied" means the millage levied in the 17
immediately preceding fiscal year for special education under part 18
30 of the revised school code, MCL 380.1711 to 380.1741. , 19
including a levy for debt service obligations. 20
(d) "Special education head count" means, for a particular 21
fiscal year, the total special education head count of an 22
intermediate district and the districts constituent to the 23
intermediate district from the fall pupil membership count day of 24
the immediately preceding year, except that if a district has 25
elected not to come under part 30 of the revised school code, MCL 26
380.1711 to 380.1741, special education head count of the district 27
is not included in the special education head count of the 28
intermediate district. 29
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(e) "Statewide average special education millage rate" means 1
the statewide levy amount divided by the statewide taxable value. 2
(f) "Statewide average taxable value per unreimbursed costs" 3
means the statewide taxable value divided by the statewide 4
unreimbursed costs. 5
(g) (c) "Taxable value" means the total taxable value of the 6
districts constituent to an intermediate district in the 7
immediately preceding fiscal year, except that if a district has 8
elected not to come under part 30 of the revised school code, MCL 9
380.1711 to 380.1741, taxable value of the district is not included 10
in the taxable value of the intermediate district. Taxable value 11
also includes both of the following: 12
(i) The value of personal property exempt under the local 13
community stabilization authority act, 2014 PA 86, MCL 123.1341 to 14
123.1362, and reimbursed to the intermediate district under section 15
17 of the local community stabilization authority act, 2014 PA 86, 16
MCL 123.1357. 17
(ii) Tax increment property captured by a brownfield 18
redevelopment authority under the brownfield redevelopment 19
financing act, 1996 PA 381, MCL 125.2651 to 125.2670, and 20
reimbursed to the intermediate district under section 15b of the 21
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2665b. 22
(h) "Unreimbursed costs" means the sum of costs reported on 23
the SE-4094 and SE-4096 reports for all districts in the 24
intermediate district, less the amount of reimbursement received 25
under section 51c, and less the capped local special education 26
property tax revenue. 27
(2) From the allocation under section 51a(1), there is 28
allocated an amount not to exceed $40,008,100.00 for 2024-2025 and 29
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$40,008,100.00 for 2025-2026 and $89,208,100.00 for 2026-2027 for 1
payments to reimburse intermediate districts levying millages for 2
special education under part 30 of the revised school code, MCL 3
380.1711 to 380.1741. The purpose, use, and expenditure of the 4
reimbursement are limited as if the funds were generated by these 5
millages and governed by the intermediate district plan adopted 6
under article 3 of the revised school code, MCL 380.1701 to 7
380.1761. As a condition of receiving funds under this section, an 8
intermediate district distributing any portion of special education 9
millage funds to its constituent districts must submit for 10
departmental approval and implement a distribution plan. 11
(3) Except as otherwise provided in this subsection, 12
reimbursement for those millages levied in 2023-2024 is made in 13
2024-2025 at an amount per 2023-2024 membership pupil computed by 14
subtracting from $260,200.00 the 2023-2024 taxable value behind 15
each membership pupil and multiplying the resulting difference by 16
the 2023-2024 millage levied, and then subtracting from that amount 17
the 2023-2024 local community stabilization share revenue for 18
special education purposes and 2023-2024 tax increment revenues 19
captured by a brownfield redevelopment authority created under the 20
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 21
to 125.2670, behind each membership pupil for reimbursement of 22
personal property exemption loss under the local community 23
stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, 24
and reimbursements paid under section 26d for tax increment 25
revenues captured by a brownfield redevelopment authority under the 26
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 27
to 125.2670. For the purposes of the calculation described in the 28
previous sentence only, for an intermediate district receiving 29
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funds under this section and section 62, reimbursements paid under 1
section 26d must be multiplied by the ratio of special education 2
millage levied, as defined in this section, and the sum of special 3
education millage levied and vocational-technical education millage 4
levied, as defined in section 62. Reimbursement in 2024-2025 for an 5
intermediate district whose 2017-2018 allocation was affected by 6
the operation of subsection (5) is an amount equal to 102.5% of the 7
2017-2018 allocation to that intermediate district. 8
(3) (4) Except as otherwise provided in this subsection, 9
reimbursement for those millages levied in 2024-2025 is made in 10
2025-2026 at an amount per 2024-2025 membership pupil computed by 11
subtracting from $278,500.00 $278,700.00 the 2024-2025 taxable 12
value behind each membership pupil and multiplying the resulting 13
difference by the 2024-2025 millage levied, and then subtracting 14
from that amount the 2024-2025 local community stabilization share 15
revenue for special education purposes and 2024-2025 tax increment 16
revenues captured by a brownfield redevelopment authority created 17
under the brownfield redevelopment financing act, 1996 PA 381, MCL 18
125.2651 to 125.2670, behind each membership pupil for 19
reimbursement of personal property exemption loss under the local 20
community stabilization authority act, 2014 PA 86, MCL 123.1341 to 21
123.1362, and reimbursements paid under section 26d for tax 22
increment revenues captured by a brownfield redevelopment authority 23
under the brownfield redevelopment financing act, 1996 PA 381, MCL 24
125.2651 to 125.2670. For the purposes of the calculation described 25
in the previous sentence only, for an intermediate district 26
receiving funds under this section and section 62, reimbursements 27
paid under section 26d must be multiplied by the ratio of special 28
education millage levied, as defined in this section, and the sum 29
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of special education millage levied and vocational-technical 1
education millage levied, as defined in section 62. Reimbursement 2
in 2025-2026 for an intermediate district whose 2017-2018 3
allocation was affected by the operation of subsection (5) is an 4
amount equal to 102.5% of the 2017-2018 allocation to that 5
intermediate district. 6
(4) (5) The For 2025-2026, the department shall ensure that 7
the amount paid to a single intermediate district under subsection 8
(2) does not exceed 62.9% of the total amount allocated under 9
subsection (2). 10
(5) (6) The For 2025-2026, the department shall ensure that 11
the amount paid to a single intermediate district under subsection 12
(2) is not less than 75% of the amount allocated to the 13
intermediate district under subsection (2) for the immediately 14
preceding fiscal year. 15
(6) (7) From For 2025-2026, from the allocation under section 16
51a(1), there is allocated an amount not to exceed $34,200,000.00 17
for 2024-2025 and 2025-2026 to provide payments to intermediate 18
districts levying millages for special education under part 30 of 19
the revised school code, MCL 380.1711 to 380.1741. The purpose, 20
use, and expenditure of the payments under this subsection are 21
limited as if the funds were generated by these millages and 22
governed by the intermediate district plan adopted under article 3 23
of the revised school code, MCL 380.1701 to 380.1761. The 24
department shall provide a payment under this subsection to each 25
intermediate district described in this subsection as follows: 26
(a) For 2024-2025 and 2025-2026, except as otherwise provided 27
in this subsection, for an intermediate district with a 3-year 28
average special education millage revenue per pupil in the 29
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immediately preceding fiscal year that is less than $251.00 and 1
that is levying at least 46.2% but less than 60.0% of its maximum 2
millage rate allowed under section 1724a of the revised school 3
code, MCL 380.1724a, an amount computed by subtracting from $251.00 4
the 3-year average special education millage revenue per pupil in 5
the immediately preceding fiscal year and, only if the millage 6
levied by the intermediate district is less than 1, multiplying 7
that amount by the number of mills levied divided by 1, and then 8
multiplying that amount by the 3-year average membership in the 9
immediately preceding fiscal year, and then subtracting from that 10
amount the amount allocated under subsection (2) for the current 11
fiscal year. If the calculation under this subdivision results in 12
an amount below zero, there is no payment under this subdivision. 13
(b) For 2024-2025 and 2025-2026, except as otherwise provided 14
in this subsection, for an intermediate district with a 3-year 15
average special education millage revenue per pupil in the 16
immediately preceding fiscal year that is less than $296.00 and 17
that is levying at least 60.0% of its maximum millage rate allowed 18
under section 1724a of the revised school code, MCL 380.1724a, an 19
amount computed by subtracting from $296.00 the 3-year average 20
special education millage revenue per pupil in the immediately 21
preceding fiscal year, and, only if the millage levied by the 22
intermediate district is less than 1, multiplying that amount by 23
the number of mills levied divided by 1, and then multiplying that 24
amount by the 3-year average membership in the immediately 25
preceding fiscal year, and then subtracting from that amount the 26
amount allocated under subsection (2) for the current fiscal year. 27
If the calculation under this subdivision results in an amount 28
below zero, there is no payment under this subdivision. 29
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(7) (8) After For 2025-2026, after making allocations to 1
eligible intermediate districts under subsections (3) , (4), and 2
(7), (6), if funds remain unallocated from the allocations under 3
subsections (2) and (7), (6), the department must allocate 4
remaining funds to intermediate districts proportional to the 5
amounts allocated to intermediate districts under subsections 6
subsection (3). and (4). 7
(8) (9) As used in subsection (7):(6): 8
(a) "3-year average membership" means the 3-year average pupil 9
membership for each of the 3 most recent fiscal years. 10
(b) "3-year average special education millage revenue per 11
pupil" means the 3-year average taxable value per mill levied 12
behind each membership pupil for each of the 3 most recent fiscal 13
years multiplied by the millage levied in the most recent fiscal 14
year. 15
(9) Beginning in 2026-2027, the department shall provide 16
payments under subsection (2) to each intermediate district 17
described in this subsection as follows: 18
(a) The department shall first calculate a reimbursement for 19
those millages levied in the immediately preceding fiscal year at 20
an amount per special education head count by subtracting the 21
intermediate district's taxable value per special education head 22
count from the statewide average taxable value per special 23
education head count, and multiplying the resulting difference by 24
the immediately preceding fiscal year millage rate levied, capped 25
at the statewide average special education millage rate. 26
(b) The department shall then calculate a reimbursement for 27
unreimbursed costs by subtracting the quotient of the intermediate 28
district's taxable value and the statewide average taxable value 29
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per unreimbursed costs from the intermediate district's 1
unreimbursed costs. 2
(c) The calculation under subdivision (a) must be greater than 3
$0.00 for an intermediate district to receive reimbursement under 4
this subsection. For an intermediate district whose calculation 5
under subdivision (a) is less than or equal to $0.00, the amount in 6
subdivision (b) is $0.00 for purposes of the calculation in 7
subdivision (d). 8
(d) The department shall then calculate the average of the 9
amounts calculated under subdivisions (a) and (b) for each 10
intermediate district. For the purpose of the calculation under 11
this subdivision, calculations in subdivision (a) or (b) that 12
result in negative totals are treated as $0.00. 13
(e) The amount reimbursed under subsection (2) is the 3-year 14
average of the amount calculated under subdivision (d) for the 3 15
most recent fiscal years. 16
(10) If total payments calculated under subsection (9) exceed 17
the amount allocated in subsection (2), the department must prorate 18
the payments on an equal percentage basis. 19
(11) In addition to the funds allocated under subsection (2), 20
from the state school aid pupil support reserve fund money 21
appropriated in section 11, there is allocated an amount not to 22
exceed $11,000,000.00 for 2026-2027 only to intermediate districts 23
described in this section. For any intermediate district where the 24
calculation under subsection (9) results in a number that is less 25
than the amount the intermediate district received under this 26
section in 2025-2026, the department shall make an additional 27
payment to that intermediate district in an amount equal to 100% of 28
the difference between the current year payment and the total 29
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payment received in 2025-2026. If the total payments calculated 1
under this subsection exceed the amount allocated under this 2
subsection, the department must prorate payments on an equal 3
percentage basis. 4
Sec. 61a. (1) From the state school aid fund money 5
appropriated in section 11, there is allocated an amount not to 6
exceed $41,733,800.00 $44,233,800.00 for 2025-2026 2026-2027 to 7
reimburse on an added cost basis districts, except for a district 8
that served as the fiscal agent for a vocational education 9
consortium in the 1993-94 school year and that has a foundation 10
allowance as calculated under section 20 greater than the target 11
foundation allowance under that section, and secondary area 12
vocational-technical education centers for secondary-level career 13
and technical education programs according to rules approved by the 14
superintendent. Applications for participation in the programs must 15
be submitted in the form prescribed by the department. The 16
department shall determine the added cost for each career and 17
technical education program area. The department shall prioritize 18
the allocation of added cost funds based on the capital and program 19
expenditures needed to operate the career and technical education 20
programs provided; the number of pupils enrolled; the advancement 21
of pupils through the instructional program; the existence of an 22
articulation agreement with at least 1 postsecondary institution 23
that provides pupils with opportunities to earn postsecondary 24
credit during the pupil's participation in the career and technical 25
education program and transfers those credits to the postsecondary 26
institution upon completion of the career and technical education 27
program; and the program rank in student placement, job openings, 28
and wages, and shall ensure that the allocation does not exceed 75% 29
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of the added cost of any program. Notwithstanding any rule or 1
department determination to the contrary, when determining a 2
district's allocation or the formula for making allocations under 3
this section, the department shall include the participation of 4
pupils in grade 9 in all of those determinations and in all 5
portions of the formula. With the approval of the department, the 6
board of a district maintaining a secondary career and technical 7
education program may offer the program for the period from the 8
close of the school year until September 1. The program shall use 9
existing facilities and must be operated as prescribed by rules 10
promulgated by the superintendent. 11
(2) Except for a district that served as the fiscal agent for 12
a vocational education consortium in the 1993-94 school year, the 13
department shall reimburse districts and intermediate districts for 14
local career and technical education administration, shared time 15
career and technical education administration, and career education 16
planning district career and technical education administration. 17
The superintendent shall adopt guidelines for the definition of 18
what constitutes administration and shall make reimbursement 19
pursuant to those guidelines. The department shall not distribute 20
more than $800,000.00 of the allocation in subsection (1) under 21
this subsection. 22
(3) A career and technical education program funded under this 23
section may provide an opportunity for participants who are 24
eligible to be funded under section 107 to enroll in the career and 25
technical education program funded under this section if the 26
participation does not occur during regular school hours. 27
Sec. 61b. (1) From the state school aid fund money 28
appropriated under section 11, there is allocated for 2025-2026 29
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2026-2027 an amount not to exceed $8,368,000.00 $8,868,000.00 for 1
CTE early middle college and CTE dual enrollment programs 2
authorized under this section and for planning grants for the 3
development or expansion of CTE early middle college programs. The 4
purpose of these programs is to increase the number of Michigan 5
residents with high-quality degrees or credentials, and to increase 6
the number of students who are college and career ready upon high 7
school graduation. 8
(2) From the funds allocated under subsection (1), the 9
department shall allocate an amount as determined under this 10
subsection to each intermediate district serving as a fiscal agent 11
for state-approved CTE early middle college and CTE dual enrollment 12
programs in each of the career education planning districts 13
identified by the department. An intermediate district shall not 14
use more than 5% of the funds allocated under this subsection for 15
administrative costs for serving as the fiscal agent. 16
(3) To be an eligible fiscal agent, an intermediate district 17
must agree to do all of the following in a form and manner 18
determined by the department: 19
(a) Distribute funds to eligible CTE early middle college and 20
CTE dual enrollment programs in a career education planning 21
district as described in this section. 22
(b) Collaborate with the career and educational advisory 23
council in the workforce development board service delivery area to 24
develop 1 regional strategic plan under subsection (4) that aligns 25
CTE programs and services into an efficient and effective delivery 26
system for high school students. The department will align career 27
education planning districts, workforce development board service 28
delivery areas, and intermediate districts for the purpose of 29
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creating 1 regional strategic plan for each workforce development 1
board service delivery area. 2
(c) Implement a regional process to rank career clusters in 3
the workforce development board service delivery area as described 4
under subsection (4). Regional processes must be approved by the 5
department before the ranking of career clusters. 6
(d) Report CTE early middle college and CTE dual enrollment 7
program and student data and information as prescribed by the 8
department and the center. 9
(e) The local education agency responsible for student 10
reporting in the Michigan student data system (MSDS) will report 11
the total number of college credits the student earned, at the time 12
of high school graduation, as determined by the department and the 13
center. 14
(f) The local education agency will report each award outcome 15
in the Michigan student data system (MSDS) that the CTE early 16
middle college student attained. For purposes of this subsection, 17
an on-track CTE early middle college graduate is a graduate who 18
obtained their high school diploma and at least 1 of the following: 19
(i) An associate degree. 20
(ii) 60 transferable college credits. 21
(iii) Professional certification. 22
(iv) A Michigan Early Middle College Association certificate. 23
(v) Participation in a registered apprenticeship. 24
(4) A regional strategic plan must be approved by the career 25
and educational advisory council before submission to the 26
department. A regional strategic plan must include, but is not 27
limited to, the following: 28
(a) An identification of regional employer need based on a 29
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ranking of all career clusters in the workforce development board 1
service delivery area ranked by 10-year projections of annual job 2
openings and median wage for each standard occupational code in 3
each career cluster as obtained from the United States Bureau of 4
Labor Statistics. Standard occupational codes within high-ranking 5
clusters also may be further ranked by median wage and annual job 6
openings. The career and educational advisory council located in 7
the workforce development board service delivery area shall review 8
the rankings and modify them if necessary to accurately reflect 9
employer demand for talent in the workforce development board 10
service delivery area. A career and educational advisory council 11
shall document that it has conducted this review and certify that 12
it is accurate. These career cluster rankings must be determined 13
and updated once every 4 years. 14
(b) An identification of educational entities in the workforce 15
development board service delivery area that will provide eligible 16
CTE early middle college and CTE dual enrollment programs including 17
districts, intermediate districts, postsecondary institutions, and 18
noncredit occupational training programs leading to an industry-19
recognized credential. 20
(c) A strategy to inform parents and students of CTE early 21
middle college and CTE dual enrollment programs in the workforce 22
development board service delivery area. 23
(d) Any other requirements as defined by the department. 24
(5) An eligible CTE program is a program that meets all of the 25
following: 26
(a) Has been identified in the highest 5 career cluster 27
rankings in any of the 16 workforce development board service 28
delivery area strategic plans jointly approved by the department of 29
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labor and economic opportunity and the department. 1
(b) Has a coherent sequence of courses in a specific career 2
cluster that will allow a student to earn a high school diploma and 3
achieve at least 1 of the following: 4
(i) For CTE early middle college, outcomes as defined in 5
subsection (3)(f). 6
(ii) For CTE dual enrollment, 1 of the following: 7
(A) An associate degree. 8
(B) An industry-recognized technical certification approved by 9
the department of labor and economic opportunity. 10
(C) Up to 60 transferable college credits. 11
(D) Participation in a registered apprenticeship, pre-12
apprenticeship, or apprentice readiness program. 13
(c) Is aligned with the Michigan merit curriculum. 14
(d) Has an articulation or a college credit agreement with at 15
least 1 postsecondary institution that provides students with 16
opportunities to receive postsecondary credits during the student's 17
participation in the CTE early middle college or CTE dual 18
enrollment program and transfers those credits to the postsecondary 19
institution upon completion of the CTE early middle college or CTE 20
dual enrollment program. 21
(e) Provides instruction that is supervised, directed, or 22
coordinated by an appropriately certificated CTE teacher or, for 23
concurrent enrollment courses, a postsecondary faculty member. 24
(f) Provides for highly integrated student support services 25
that include at least the following: 26
(i) Teachers as academic advisors. 27
(ii) Supervised course selection. 28
(iii) Monitoring of student progress and completion. 29
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(iv) Career planning services provided by a local one-stop 1
service center as described in the Michigan works one-stop service 2
center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a 3
high school counselor or advisor. 4
(g) Has courses that are taught on a college campus, are 5
college courses offered at the high school and taught by college 6
faculty, or are courses taught in combination with online 7
instruction. 8
(6) The department shall distribute funds to eligible CTE 9
early middle college and CTE dual enrollment programs as follows: 10
(a) The department shall determine statewide average CTE costs 11
per pupil for each CIP code program by calculating statewide 12
average costs for each CIP code program for the 3 most recent 13
fiscal years. 14
(b) The distribution to each eligible CTE early middle college 15
or CTE dual enrollment program is the product of 50% of CTE costs 16
per pupil times the pupil enrollment of each eligible CTE early 17
middle college or CTE dual enrollment program in the immediately 18
preceding school year. 19
(7) To receive funds under this section, a CTE early middle 20
college or CTE dual enrollment program shall furnish to the 21
intermediate district that is the fiscal agent identified in 22
subsection (2), in a form and manner determined by the department, 23
all information needed to administer this program and meet federal 24
reporting requirements; shall allow the department or the 25
department's designee to review all records related to the program 26
for which it receives funds; and shall reimburse the state for all 27
disallowances found in the review, as determined by the department. 28
(8) There is allocated for 2025-2026 2026-2027 from the funds 29
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under subsection (1) an amount not to exceed $500,000.00 from the 1
state school aid fund allocation for grants to intermediate 2
districts or consortia of intermediate districts for the purpose of 3
planning for new or expanded early middle college programs. 4
Applications for grants must be submitted in a form and manner 5
determined by the department. The amount of a grant under this 6
subsection must not exceed $50,000.00. To be eligible for a grant 7
under this subsection, an intermediate district or consortia of 8
intermediate districts must provide matching funds equal to the 9
grant received under this subsection. Notwithstanding section 17b, 10
the department shall make payments under this subsection in the 11
manner determined by the department. 12
(9) Funds distributed under this section may be used to fund 13
program expenditures that would otherwise be paid from foundation 14
allowances. A program receiving funding under section 61a may 15
receive funding under this section for allowable costs that exceed 16
the reimbursement the program received under section 61a. The 17
combined payments received by a program under section 61a and this 18
section must not exceed the total allowable costs of the program. A 19
program provider shall not use more than 5% of the funds allocated 20
under this section to the program for administrative costs. 21
(10) If the allocation under subsection (1) is insufficient to 22
fully fund payments as otherwise calculated under this section, the 23
department shall prorate payments under this section on an equal 24
percentage basis, using for that proration calculation payments 25
made for CTE dual enrollment programs only. 26
(11) If pupils enrolled in a career cluster in an eligible CTE 27
early middle college or CTE dual enrollment program qualify to be 28
reimbursed under this section, those pupils continue to qualify for 29
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reimbursement until graduation, even if the career cluster is no 1
longer identified as being in the highest 5 career cluster 2
rankings. 3
(12) As used in this section: 4
(a) "Allowable costs" means those costs directly attributable 5
to the program as jointly determined by the department of labor and 6
economic opportunity and the department. 7
(b) "Career and educational advisory council" means an 8
advisory council to the local workforce development boards located 9
in a workforce development board service delivery area consisting 10
of educational, employer, labor, and parent representatives. 11
(c) "CIP" means classification of instructional programs. 12
(d) "CTE" means career and technical education programs. 13
(e) "CTE dual enrollment program" means a 4-year high school 14
program of postsecondary courses offered by eligible postsecondary 15
educational institutions that leads to an industry-recognized 16
certification or degree. 17
(f) "Early middle college program" means a 5-year high school 18
program. 19
(g) "Eligible postsecondary educational institution" means 20
that term as defined in section 3 of the career and technical 21
preparation act, 2000 PA 258, MCL 388.1903. 22
Sec. 62. (1) For the purposes of this section: 23
(a) "Membership" means for a particular fiscal year the total 24
membership of the intermediate district and the districts 25
constituent to the intermediate district or the total membership of 26
the area vocational-technical program, except that if a district 27
has elected not to come under sections 681 to 690 of the revised 28
school code, MCL 380.681 to 380.690, the membership of that 29
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district are not included in the membership of the intermediate 1
district. However, the membership of a district that has elected 2
not to come under sections 681 to 690 of the revised school code, 3
MCL 380.681 to 380.690, is included in the membership of the 4
intermediate district if the district meets both of the following: 5
(i) The district operates the area vocational-technical 6
education program pursuant to a contract with the intermediate 7
district. 8
(ii) The district contributes an annual amount to the operation 9
of the program that is commensurate with the revenue that would 10
have been raised for operation of the program if millage were 11
levied in the district for the program under sections 681 to 690 of 12
the revised school code, MCL 380.681 to 380.690. 13
(b) "Millage levied" means the millage levied for area 14
vocational-technical education under sections 681 to 690 of the 15
revised school code, MCL 380.681 to 380.690, including a levy for 16
debt service obligations incurred as the result of borrowing for 17
capital outlay projects and in meeting capital projects fund 18
requirements of area vocational-technical education. 19
(c) "Taxable value" means the total taxable value of the 20
districts constituent to an intermediate district or area 21
vocational-technical education program, except that if a district 22
has elected not to come under sections 681 to 690 of the revised 23
school code, MCL 380.681 to 380.690, the taxable value of that 24
district is not included in the taxable value of the intermediate 25
district. However, the taxable value of a district that has elected 26
not to come under sections 681 to 690 of the revised school code, 27
MCL 380.681 to 380.690, is included in the taxable value of the 28
intermediate district if the district meets both of the following: 29
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(i) The district operates the area vocational-technical 1
education program pursuant to a contract with the intermediate 2
district. 3
(ii) The district contributes an annual amount to the operation 4
of the program that is commensurate with the revenue that would 5
have been raised for operation of the program if millage were 6
levied in the district for the program under sections 681 to 690 of 7
the revised school code, MCL 380.681 to 380.690. 8
(2) From the state school aid fund money appropriated in 9
section 11, there is allocated an amount not to exceed 10
$9,190,000.00 each fiscal year for 2024-2025 and 2025-2026 to 11
reimburse intermediate districts and area vocational-technical 12
education programs established under section 690(3) of the revised 13
school code, MCL 380.690, levying millages for area vocational-14
technical education under sections 681 to 690 of the revised school 15
code, MCL 380.681 to 380.690. The purpose, use, and expenditure of 16
the reimbursement are limited as if the funds were generated by 17
those millages. 18
(3) Reimbursement for those millages levied in 2023-2024 is 19
made in 2024-2025 at an amount per 2023-2024 membership pupil 20
computed by subtracting from $269,800.00 the 2023-2024 taxable 21
value behind each membership pupil and multiplying the resulting 22
difference by the 2023-2024 millage levied, and then subtracting 23
from that amount the 2023-2024 local community stabilization share 24
revenue for area vocational technical education and 2023-2024 tax 25
increment revenues captured by a brownfield redevelopment authority 26
created under the brownfield redevelopment financing act, 1996 PA 27
381, MCL 125.2651 to 125.2670, behind each membership pupil for 28
reimbursement of personal property exemption loss under the local 29
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community stabilization authority act, 2014 PA 86, MCL 123.1341 to 1
123.1362, and reimbursements paid under section 26d for tax 2
increment revenues captured by a brownfield redevelopment authority 3
under the brownfield redevelopment financing act, 1996 PA 381, MCL 4
125.2651 to 125.2670. For the purposes of the calculation described 5
in the previous sentence only, for an intermediate district 6
receiving funds under this section and section 56, reimbursements 7
paid under section 26d must be multiplied by the ratio of 8
vocational-technical education millage levied, as defined in this 9
section, and the sum of vocational-technical education millage 10
levied and special education. 11
(3) (4) Reimbursement for those millages levied in 2024-2025 12
is made in 2025-2026 at an amount per 2024-2025 membership pupil 13
computed by subtracting from $287,400.00 $288,300.00 the 2024-2025 14
taxable value behind each membership pupil and multiplying the 15
resulting difference by the 2024-2025 millage levied, and then 16
subtracting from that amount the 2024-2025 local community 17
stabilization share revenue for area vocational technical education 18
and 2024-2025 tax increment revenues captured by a brownfield 19
redevelopment authority created under the brownfield redevelopment 20
financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each 21
membership pupil for reimbursement of personal property exemption 22
loss under the local community stabilization authority act, 2014 PA 23
86, MCL 123.1341 to 123.1362, and reimbursements paid under section 24
26d for tax increment revenues captured by a brownfield 25
redevelopment authority under the brownfield redevelopment 26
financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the 27
purposes of the calculation described in the previous sentence 28
only, for an intermediate district receiving funds under this 29
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section and section 56, reimbursements paid under section 26d must 1
be multiplied by the ratio of vocational-technical education 2
millage levied, as defined in this section, and the sum of 3
vocational-technical education millage levied and special education 4
millage levied, as defined in section 56. 5
(4) Reimbursement for those millages levied in 2025-2026 is 6
made in 2026-2027 at an amount per 2025-2026 membership pupil 7
computed by subtracting from $303,500.00 the 2025-2026 taxable 8
value behind each membership pupil and multiplying the resulting 9
difference by the 2025-2026 millage levied, and then subtracting 10
from that amount the 2025-2026 local community stabilization share 11
revenue for area vocational technical education and 2025-2026 tax 12
increment revenues captured by a brownfield redevelopment authority 13
created under the brownfield redevelopment financing act, 1996 PA 14
381, MCL 125.2651 to 125.2670, behind each membership pupil for 15
reimbursement of personal property exemption loss under the local 16
community stabilization authority act, 2014 PA 86, MCL 123.1341 to 17
123.1362, and reimbursements paid under section 26d for tax 18
increment revenues captured by a brownfield redevelopment authority 19
under the brownfield redevelopment financing act, 1996 PA 381, MCL 20
125.2651 to 125.2670. For the purposes of the calculation described 21
in the previous sentence only, for an intermediate district 22
receiving funds under this section and section 56, reimbursements 23
paid under section 26d must be multiplied by the ratio of 24
vocational-technical education millage levied, as defined in this 25
section, and the sum of vocational-technical education millage 26
levied and special education millage levied, as defined in section 27
56. 28
(5) The department shall ensure that the amount paid to a 29
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single intermediate district under this section does not exceed 1
38.4% of the total amount allocated under subsection (2). 2
(6) The department shall ensure that the amount paid to a 3
single intermediate district under this section is not less than 4
75% of the amount allocated to the intermediate district under this 5
section for the immediately preceding fiscal year. 6
Sec. 65. (1) From the state school aid pupil support reserve 7
fund money appropriated in section 11, there is allocated an amount 8
not to exceed $900,000.00 for 2025-2026 2026-2027 only for a pre-9
college engineering K to 12 educational program that is focused on 10
the development of a diverse future Michigan workforce, that serves 11
multiple communities within southeast Michigan, that enrolls pupils 12
from multiple districts, and that received funds appropriated for 13
this purpose in the appropriations act that provided the Michigan 14
strategic fund budget for 2014-2015. It is the intent of the 15
legislature that the appropriation under this section will be 16
funded with state school aid pupil support reserve fund money 17
through 2027-2028. 18
(2) To be eligible for funding under this section, a program 19
must have the ability to expose pupils to, and motivate and prepare 20
pupils for, science, technology, engineering, and mathematics 21
careers and postsecondary education with special attention given to 22
groups of pupils who are at-risk and underrepresented in technical 23
professions and careers. 24
Sec. 67. (1) From the general fund money appropriated in 25
section 11, there is allocated an amount not to exceed 26
$3,000,000.00 for 2025-2026 2026-2027 for college access programs. 27
The programs funded under this section are intended to inform 28
students of college and career options, to provide resources 29
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intended to increase the number of pupils who are adequately 1
prepared with the information needed to make informed decisions on 2
college and career, support adult learners, support college 3
completion, and support workforce and employer engagement. The 4
funds appropriated under this section are intended to be used to 5
increase the number of Michigan residents with high-quality degrees 6
or credentials. Funds appropriated under this section must not be 7
used to supplant funding for counselors already funded by 8
districts. 9
(2) The department of lifelong education, advancement, and 10
potential shall administer funds allocated under this section in 11
collaboration with the Michigan college access network. These funds 12
may be used for any of the following purposes: 13
(a) Michigan college access network operations, programming, 14
and services to local college access networks. 15
(b) Local college access networks, which are community-based 16
college access/success partnerships committed to increasing the 17
college participation and completion rates within geographically 18
defined communities through a coordinated strategy. 19
(c) The Michigan college advising program, a program intended 20
to place trained, recently graduated college advisors in high 21
schools that serve significant numbers of low-income and first-22
generation college-going pupils. State funds used for this purpose 23
may not exceed 33% of the total funds available under this 24
subsection. 25
(d) Subgrants of up to $5,000.00 to districts with 26
comprehensive high schools that establish a college access team and 27
implement specific strategies to create a college-going culture in 28
a high school in a form and manner approved by the Michigan college 29
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access network and the department of lifelong education, 1
advancement, and potential. 2
(e) The Michigan college access portal, an online one-stop 3
portal to help pupils and families plan and apply for college. 4
(f) Public awareness and outreach campaigns to encourage low-5
income and first-generation college-going pupils to take necessary 6
steps toward college and to assist pupils and families in 7
completing a timely and accurate free application for federal 8
student aid. 9
(g) Subgrants to postsecondary institutions to recruit, hire, 10
and train college student mentors and college advisors to assist 11
high school pupils in navigating the postsecondary planning and 12
enrollment process. 13
(3) For the purposes of this section, "college" means any 14
postsecondary educational opportunity that leads to a career, 15
including, but not limited to, a postsecondary degree, industry-16
recognized technical certification, or registered apprenticeship. 17
Sec. 67f. (1) From the state school aid pupil support reserve 18
fund money appropriated in section 11, there is allocated for 2025-19
2026 2026-2027 only an amount not to exceed $10,000,000.00 for 20
districts to improve FAFSA completion rates. It is the intent of 21
the legislature that the appropriation under this section will be 22
funded with state school aid pupil support reserve fund money 23
through 2027-2028. 24
(2) To be eligible to receive funding under this section, each 25
district must apply in a form and manner determined by the 26
department of lifelong education, advancement, and potential. The 27
department of lifelong education, advancement, and potential shall 28
make the application available by not later than November 1, 2025. 29
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A district shall apply for funding to the department of lifelong 1
education, advancement, and potential by not later than December 1, 2
2025. In the application, the department of lifelong education, 3
advancement, and potential shall only require a district to certify 4
that it will do both of the following: 5
(a) Except as otherwise provided in subsection (3), require 6
all students to complete the FAFSA to graduate from high school. 7
(b) Use funds received under this section for participation in 8
and implementation of activities that are known to drive FAFSA 9
completion, as determined by the department of lifelong education, 10
advancement, and potential, in collaboration with the Michigan 11
College Access Network. 12
(3) A district shall exempt a student from the requirement to 13
complete the FAFSA if any of the following are met: 14
(a) The student's parent or legal guardian, or the student if 15
the student is 18 years of age or older, is an emancipated minor, 16
or is an unaccompanied youth, has submitted a parental waiver to 17
the district exempting the student from completing the FAFSA. The 18
parental waiver described in this subdivision must be obtained 19
through a standard form developed by the department of lifelong 20
education, advancement, and potential. 21
(b) The student is unable to complete the FAFSA because of 22
privacy concerns. 23
(c) All of the following are met: 24
(i) After a good-faith effort, the student's parent or legal 25
guardian refuses to sign the parental waiver, is unresponsive, or 26
cannot sign the parental waiver. 27
(ii) The student is unable to complete the FAFSA as an 28
independent student. 29
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(iii) The student agrees to opt out of completing the FAFSA. 1
(iv) Other than the requirements in subsection (2), the student 2
is on track to graduate. 3
(v) A school administrator of the student's high school 4
demonstrates to the board that good-faith efforts have been made to 5
assist the student or the student's parent or legal guardian in 6
completing the FAFSA or obtaining a parental waiver. 7
(vi) The board ensures compliance with 42 USC 11432(g)(6)(A). 8
(4) The department of lifelong education, advancement, and 9
potential may use past participation in the FAFSA Completion 10
Challenge under this section as a factor in determining district 11
eligibility. 12
(5) (4) By not later than January 31, 2026, the The department 13
of lifelong education, advancement, and potential shall pay each 14
eligible district an equal amount per pupil multiplied by the 15
number of pupils enrolled and attending grade 12 in the district. 16
Initial payments must be made by not later than January 31, 2027. 17
(6) (5) Notwithstanding section 17b, the department of 18
lifelong education, advancement, and potential shall make payments 19
under this section on a schedule determined by the department of 20
lifelong education, advancement, and potential. 21
(7) Notwithstanding section 18a, funds allocated under this 22
section may be available for expenditure until September 30, 2029. 23
A recipient of funding under this section must return any 24
unexpended funds to the department in the manner prescribed by the 25
department by not later than October 30, 2030. 26
(8) (6) As used in the this section, "FAFSA" means the free 27
application for federal student aid form. 28
Sec. 74. (1) From the state school aid fund money appropriated 29
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in section 11, there is allocated an amount not to exceed 1
$3,949,900.00 $4,003,100.00 for 2025-2026 2026-2027 for the 2
purposes of this section. 3
(2) From the allocation in subsection (1), there is allocated 4
for 2025-2026 2026-2027 the amount necessary for payments to state 5
supported colleges or universities and intermediate districts 6
providing school bus driver safety instruction under section 51 of 7
the pupil transportation act, 1990 PA 187, MCL 257.1851. The 8
department shall make payments in an amount determined by the 9
department not to exceed the actual cost of instruction and driver 10
compensation for each public or nonpublic school bus driver 11
attending a course of instruction. For the purpose of computing 12
compensation, the hourly rate allowed each school bus driver must 13
not exceed the hourly rate received for driving a school bus. The 14
department shall make reimbursement compensating the driver during 15
the course of instruction to the college or university or 16
intermediate district providing the course of instruction. 17
(3) From the allocation in subsection (1), there is allocated 18
for 2025-2026 2026-2027 the amount necessary to pay the reasonable 19
costs of nonspecial education auxiliary services transportation 20
provided under section 1323 of the revised school code, MCL 21
380.1323. Districts funded under this subsection do not receive 22
funding under any other section of this article for nonspecial 23
education auxiliary services transportation. 24
(4) From the funds allocated in subsection (1), there is 25
allocated an amount not to exceed $1,924,900.00 $1,978,100.00 for 26
2025-2026 2026-2027 for the inspection of school buses and pupil 27
transportation vehicles by the department of state police as 28
required under section 715a of the Michigan vehicle code, 1949 PA 29
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300, MCL 257.715a, and section 39 of the pupil transportation act, 1
1990 PA 187, MCL 257.1839. The department of state police shall 2
prepare a statement of costs and submit it to the department and to 3
an intermediate district serving as fiduciary in a time and manner 4
determined jointly by the department and the department of state 5
police. Upon review and approval of the statement of cost, the 6
department shall forward to the designated intermediate district 7
serving as fiduciary the amount detailed on the statement within 45 8
days after receipt of the statement. The designated intermediate 9
district fiduciary shall make payment in the amount specified on 10
the statement to the department of state police within 45 days 11
after receipt of the statement. The total reimbursement of costs 12
under this subsection must not exceed the amount allocated under 13
this subsection. Notwithstanding section 17b, the department shall 14
make payments to eligible entities under this subsection on a 15
schedule prescribed by the department. 16
Sec. 81. (1) From the state school aid fund money appropriated 17
in section 11, there is allocated for 2025-2026 2026-2027 to 18
intermediate districts the sum necessary, but not to exceed 19
$83,157,700.00, $85,355,700.00, to provide state aid to 20
intermediate districts under this section. 21
(2) The amount allocated under this section to each 22
intermediate school district for the current fiscal year is equal 23
to the allocation for the immediately preceding fiscal year plus an 24
equal percentage increase for all intermediate school districts. An 25
intermediate district shall use funding provided under this section 26
to comply with requirements of this article and the revised school 27
code that are applicable to intermediate districts, and for which 28
funding is not provided elsewhere in this article, and to provide 29
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technical assistance to districts as authorized by the intermediate 1
school board. 2
(3) Intermediate districts receiving funds under this section 3
shall collaborate with the department to develop expanded 4
professional development opportunities for teachers to update and 5
expand their knowledge and skills needed to support the Michigan 6
merit curriculum. 7
(4) From the allocation in subsection (1), there is allocated 8
to an intermediate district, formed by the consolidation or 9
annexation of 2 or more intermediate districts or the attachment of 10
a total intermediate district to another intermediate district or 11
the annexation of all of the constituent K to 12 districts of a 12
previously existing intermediate district which has disorganized, 13
an additional allotment of $3,500.00 each fiscal year for each 14
intermediate district included in the new intermediate district for 15
3 years following consolidation, annexation, or attachment. 16
(5) To receive funding under this section, an intermediate 17
district shall do all of the following: 18
(a) Demonstrate to the satisfaction of the department that the 19
intermediate district employs at least 1 person who is trained in 20
pupil accounting and auditing procedures, rules, and regulations. 21
(b) Demonstrate to the satisfaction of the department that the 22
intermediate district employs at least 1 person who is trained in 23
rules, regulations, and district reporting procedures for the 24
individual-level student data that serves as the basis for the 25
calculation of the district and high school graduation and dropout 26
rates. 27
(c) Comply with sections 1278a and 1278b of the revised school 28
code, MCL 380.1278a and 380.1278b. 29
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(d) Furnish data and other information required by state and 1
federal law to the center and the department in the form and manner 2
specified by the center or the department, as applicable. 3
(e) Comply with section 1230g of the revised school code, MCL 4
380.1230g. 5
(f) Ensure that all districts located within the intermediate 6
district's geographic boundaries have equitable access to the 7
intermediate district's coordination activities and services, 8
intermediate district-wide or regional meetings, regularly 9
scheduled superintendent meetings, programming, events, email 10
distribution lists, listservs, or other coordination or 11
collaboration activities organized by or hosted in the intermediate 12
district. In ensuring that all districts located within the 13
geographic boundaries of the intermediate district have equitable 14
access to the services, meetings, programming, events, email 15
distribution lists, listservs, or activities, the intermediate 16
district shall ensure that districts that are public school 17
academies and that are located within the intermediate district's 18
geographic boundaries are not excluded from the services, meetings, 19
programming, events, email distribution lists, listservs, or 20
activities organized by or hosted in the intermediate district if 21
districts that are not public school academies and that are located 22
within the geographic boundaries of the intermediate district are 23
not excluded. 24
Sec. 94. (1) From the general fund money appropriated in 25
section 11, there is allocated to the department for 2025-2026 26
2026-2027 an amount not to exceed $2,600,000.00 for efforts to 27
increase the number of pupils who participate and succeed in 28
advanced placement and international baccalaureate programs, and to 29
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support the college-level examination program (CLEP). It is the 1
intent of the legislature that, for 2026-2027, 2027-2028, the 2
allocation from the general fund money appropriated in section 11 3
for purposes described in this section will be $1,200,000.00. 4
(2) From the funds allocated under this section, the 5
department shall award funds to cover all or part of the costs of 6
advanced placement test fees or international baccalaureate test 7
fees and international baccalaureate registration fees for low-8
income pupils who take an advanced placement or an international 9
baccalaureate test and CLEP fees for low-income pupils who take a 10
CLEP test. 11
(3) The department shall only award funds under this section 12
if the department determines that all of the following criteria are 13
met: 14
(a) Each pupil for whom payment is made meets eligibility 15
requirements of the federal advanced placement test fee program 16
under the no child left behind act of 2001, Public Law 107-110, or 17
the every student succeeds act, Public Law 114-95, as applicable. 18
(b) The tests are administered by the college board, the 19
international baccalaureate organization, or another test provider 20
approved by the department. 21
(c) The pupil for whom payment is made pays at least $5.00 22
toward the cost of each test for which payment is made. 23
(4) If funds remain after the awards granted in subsection 24
(2), the department shall award funds to reimburse a portion of the 25
costs associated with the provision of advanced placement (AP), 26
international baccalaureate (IB), or college-level examination 27
program (CLEP) exams for students whose family income exceeds low-28
income status as determined by the department. 29
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(5) The department shall establish procedures for awarding 1
funds under this section. 2
(6) Notwithstanding section 17b, the department shall make 3
payments under this section on a schedule determined by the 4
department. 5
Sec. 94a. (1) There is created within the state budget office 6
in the department of technology, management, and budget the center 7
for educational performance and information. The center shall do 8
all of the following: 9
(a) Coordinate the collection of all data required by state 10
and federal law from districts, intermediate districts, and 11
postsecondary institutions. 12
(b) Create, maintain, and enhance this state's P-20 13
longitudinal data system and ensure that it meets the requirements 14
of subsection (4). 15
(c) Collect data in the most efficient manner possible to 16
reduce the administrative burden on reporting entities, including, 17
but not limited to, electronic transcript services. 18
(d) Create, maintain, and enhance this state's web-based 19
educational portal to provide information to school leaders, 20
teachers, researchers, and the public in compliance with all 21
federal and state privacy laws. Data must include, but are not 22
limited to, all of the following: 23
(i) Data sets that link teachers to student information, 24
allowing districts to assess individual teacher impact on student 25
performance and consider student growth factors in teacher and 26
principal evaluation systems. 27
(ii) Data access or, if practical, data sets, provided for 28
regional data hubs that, in combination with local data, can 29
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improve teaching and learning in the classroom. 1
(iii) Research-ready data sets for researchers to perform 2
research that advances this state's educational performance. 3
(e) Provide data in a useful manner to allow state and local 4
policymakers to make informed policy decisions. 5
(f) Provide public reports to the residents of this state to 6
allow them to assess allocation of resources and the return on 7
their investment in the education system of this state. 8
(g) Other functions as assigned by the state budget director. 9
(2) Each state department, officer, or agency that collects 10
information from districts, intermediate districts, or 11
postsecondary institutions as required under state or federal law 12
shall make arrangements with the center to ensure that the state 13
department, officer, or agency is in compliance with subsection 14
(1). This subsection does not apply to information collected by the 15
department of treasury under the uniform budgeting and accounting 16
act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal 17
finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond 18
qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to 19
388.1939; or section 1351a of the revised school code, MCL 20
380.1351a. 21
(3) The center may enter into any interlocal agreements 22
necessary to fulfill its functions. 23
(4) The center shall ensure that the P-20 longitudinal data 24
system required under subsection (1)(b) meets all of the following: 25
(a) Includes data at the individual student level from 26
preschool through postsecondary education and into the workforce. 27
(b) Supports interoperability by using standard data 28
structures, data formats, and data definitions to ensure linkage 29
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and connectivity in a manner that facilitates the exchange of data 1
among agencies and institutions within the state and between 2
states. 3
(c) Enables the matching of individual teacher and student 4
records so that an individual student may be matched with those 5
teachers providing instruction to that student. 6
(d) Enables the matching of individual teachers with 7
information about their certification and the institutions that 8
prepared and recommended those teachers for state certification. 9
(e) Enables data to be easily generated for continuous 10
improvement and decision-making, decision including timely 11
reporting to parents, teachers, and school leaders on student 12
achievement. 13
(f) Ensures the reasonable quality, validity, and reliability 14
of data contained in the system. 15
(g) Provides this state with the ability to meet federal and 16
state reporting requirements. 17
(h) For data elements related to preschool through grade 12 18
and postsecondary, meets all of the following: 19
(i) Contains a unique statewide student identifier that does 20
not permit a student to be individually identified by users of the 21
system, except as allowed by federal and state law. 22
(ii) Contains student-level enrollment, demographic, and 23
program participation information, including data associated with 24
students who have been identified as having an affiliation to 1 or 25
more federally recognized Indian tribes and student participation 26
in federal programs funded under 20 USC 7401 to 7546 and 27
participation in federal programs funded under the Johnson-O'Malley 28
Supplemental supplemental Indian Education Program Modernization 29
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Act, education program modernization act, Public Law 115-404. Any 1
reports or data access related specifically to tribal affiliation 2
must be done through ongoing consultation with the federally 3
recognized tribes in the state with the expectation that the 4
center, the department, and the tribes will work iteratively toward 5
meaningful reports, access, and use of these records to improve 6
shared education interests and outcomes. 7
(iii) Contains student-level information about the points at 8
which students exit, transfer in, transfer out, drop out, or 9
complete education programs. 10
(iv) Has the capacity to communicate with higher education data 11
systems. 12
(i) For data elements related to preschool through grade 12 13
only, meets all of the following: 14
(i) Contains yearly test records of individual students for 15
assessments approved by DED-OESE for accountability purposes under 16
section 1111(b) of the elementary and secondary education act of 17
1965, 20 USC 6311, including information on individual students not 18
tested, by grade and subject. 19
(ii) Contains student-level transcript information, including 20
information on courses completed and grades earned. 21
(iii) Contains student-level college readiness test scores. 22
(j) For data elements related to postsecondary education only: 23
(i) Contains data that provide information regarding the extent 24
to which individual students transition successfully from secondary 25
school to postsecondary education, including, but not limited to, 26
all of the following: 27
(A) Enrollment in remedial coursework. 28
(B) Completion of 1 year's worth of college credit applicable 29
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to a degree within 2 years of enrollment. 1
(ii) Contains data that provide other information determined 2
necessary to address alignment and adequate preparation for success 3
in postsecondary education. 4
(5) From the general fund money appropriated in section 11, 5
there is allocated an amount not to exceed $19,364,700.00 6
$19,548,500.00 for 2025-2026 2026-2027 to the department of 7
technology, management, and budget to support the operations of the 8
center. In addition, from the federal funds appropriated in section 9
11, there is allocated for 2025-2026 2026-2027 the amount 10
necessary, estimated at $2,193,500.00, $193,500.00, to support the 11
operations of the center and to establish a P-20 longitudinal data 12
system necessary for state and federal reporting purposes. The 13
center shall cooperate with the department to ensure that this 14
state is in compliance with federal law and is maximizing 15
opportunities for increased federal funding to improve education in 16
this state. 17
(6) From the funds allocated in subsection (5), the center may 18
use an amount determined by the center for competitive grants for 19
2025-2026 2026-2027 to support collaborative efforts on the P-20 20
longitudinal data system. All of the following apply to grants 21
awarded under this subsection: 22
(a) The center shall award competitive grants to eligible 23
intermediate districts or a consortium of intermediate districts 24
based on criteria established by the center. 25
(b) Activities funded under the grant must support the P-20 26
longitudinal data system portal and may include portal hosting, 27
hardware and software acquisition, maintenance, enhancements, user 28
support and related materials, and professional learning tools and 29
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activities aimed at improving the utility of the P-20 longitudinal 1
data system. 2
(c) An applicant that received a grant under this subsection 3
for the immediately preceding fiscal year has priority for funding 4
under this section. However, after 3 fiscal years of continuous 5
funding, an applicant is required to compete openly with new 6
applicants. 7
(7) Funds allocated under this section that are not expended 8
in the fiscal year in which they were allocated may be carried 9
forward to a subsequent fiscal year and are appropriated for the 10
purposes for which the funds were originally allocated. 11
(8) The center may bill departments as necessary to fulfill 12
reporting requirements of state and federal law. The center may 13
also enter into agreements to supply custom data, analysis, and 14
reporting to other principal executive departments, state agencies, 15
local units of government, and other individuals and organizations. 16
The center may receive and expend funds in addition to those 17
authorized in subsection (5) to cover the costs associated with 18
salaries, benefits, supplies, materials, and equipment necessary to 19
provide such data, analysis, and reporting services. 20
(9) As used in this section, "DED-OESE" means the United 21
States Department of Education Office of Elementary and Secondary 22
Education. 23
Sec. 94e. (1) From the state school aid fund money 24
appropriated under section 11, there is allocated for 2025-2026 25
2026-2027 only an amount not to exceed $1,000,000.00 for support of 26
the Michigan Education Research Institute. 27
(2) Funding allocated under this section must be distributed 28
to the University of Michigan's Michigan Education Data Center and 29
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Michigan State University's Education Policy Innovation Center for 1
the purpose of working collaboratively with the department, the 2
department of lifelong education, advancement, and potential, and 3
the center to build and maintain a research ready dataset, and to 4
conduct research of critical importance to the state's education 5
goals. 6
(3) The Michigan Education Research Institute shall use funds 7
received under this section for the purpose of expanding on 8
research that includes, but is not limited to, all the following: 9
(a) Educator shortage. 10
(b) Early literacy initiative outcomes. 11
(c) Early childhood development programming outcomes. 12
(4) Notwithstanding section 17b, the department shall make 13
payments under this section on a schedule determined by the 14
department. 15
Sec. 98. (1) From the general fund money appropriated in 16
section 11, there is allocated an amount not to exceed 17
$9,800,000.00 for 2025-2026 2026-2027 only for the purposes 18
described in this section. The Michigan Virtual University shall 19
provide a report to the legislature not later than November 1 of 20
each fiscal year for which funding is allocated under this section 21
that includes its mission, its plans, and proposed benchmarks it 22
must meet, including a plan to achieve the organizational 23
priorities identified in this section, to receive full funding for 24
the next fiscal year for which funding is allocated under this 25
section. By not later than March 1 of each fiscal year for which 26
funding is allocated under this section, the Michigan Virtual 27
University shall provide an update to the house and senate 28
appropriations subcommittees on school aid to show the progress 29
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being made to meet the benchmarks identified. 1
(2) The Michigan Virtual University shall operate the Michigan 2
Virtual Learning Research Institute. The Michigan Virtual Learning 3
Research Institute shall do all of the following: 4
(a) Support and accelerate innovation in education through the 5
following activities: 6
(i) Test, evaluate, and recommend as appropriate new 7
technology-based instructional tools and resources. 8
(ii) Research, design, and recommend virtual education delivery 9
models for use by pupils and teachers that include age-appropriate 10
multimedia instructional content. 11
(iii) Research, develop, and recommend annually to the 12
department criteria by which cyber schools and virtual course 13
providers should be monitored and evaluated to ensure a quality 14
education for their pupils. 15
(iv) Based on pupil completion and performance data reported to 16
the department or the center from cyber schools and other virtual 17
course providers operating in this state, analyze the effectiveness 18
of virtual learning delivery models in preparing pupils to be 19
college- and career-ready and publish a report that highlights 20
enrollment totals, completion rates, and the overall impact on 21
pupils. The Michigan Virtual Learning Research Institute shall 22
submit the report to the house and senate appropriations 23
subcommittees on school aid, the state budget director, the house 24
and senate fiscal agencies, the department, districts, and 25
intermediate districts by not later than March 31 of each fiscal 26
year for which funding is allocated under this section. 27
(v) Provide an extensive professional development program to 28
at least 30,000 educational personnel, including teachers, school 29
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administrators, and school board members, that focuses on the 1
effective integration of virtual learning into curricula and 2
instruction. The Michigan Virtual Learning Research Institute is 3
encouraged to work with the MiSTEM council described in section 99s 4
to coordinate professional development of teachers in applicable 5
fields. In addition, the Michigan Virtual Learning Research 6
Institute and external stakeholders are encouraged to coordinate 7
with the department for professional development in this state, 8
including professional development for employees in child care 9
facilities, early childhood facilities, and after-school programs. 10
By not later than December 1 of each fiscal year for which funding 11
is allocated under this section, the Michigan Virtual Learning 12
Research Institute shall submit a report to the house and senate 13
appropriations subcommittees on school aid, the state budget 14
director, the house and senate fiscal agencies, and the department 15
on the number of teachers, school administrators, and school board 16
members who have received professional development services from 17
the Michigan Virtual University. The report must also include both 18
of the following: 19
(A) The identification of barriers and other opportunities to 20
encourage the adoption of virtual learning in the public education 21
system. 22
(B) A link to, and explanation of, the Michigan Virtual 23
University's online course standards for professional development 24
programming. The standards described in this sub-subparagraph must 25
inform learners how to file a complaint about course content and 26
detail the steps that will be taken for the review and resolution 27
of complaints. 28
(vi) Identify and share best practices for planning, 29
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implementing, and evaluating virtual and blended education delivery 1
models with intermediate districts, districts, and public school 2
academies to accelerate the adoption of innovative education 3
delivery models statewide. 4
(b) Provide leadership for this state's system of virtual 5
learning education by doing the following activities: 6
(i) Develop and report policy recommendations to the governor 7
and the legislature that accelerate the expansion of effective 8
virtual learning in this state's schools. 9
(ii) Provide a clearinghouse for research reports, academic 10
studies, evaluations, and other information related to virtual 11
learning. 12
(iii) Promote and distribute the most current instructional 13
design standards and guidelines for virtual teaching. 14
(iv) In collaboration with the department and interested 15
colleges and universities in this state, support implementation and 16
improvements related to effective virtual learning instruction. 17
(v) Pursue public/private partnerships that include districts 18
to study and implement competency-based technology-rich virtual 19
learning models. 20
(vi) Create a statewide network of school-based mentors serving 21
as liaisons between pupils, virtual instructors, parents, and 22
school staff, as provided by the department or the center, and 23
provide mentors with research-based training and technical 24
assistance designed to help more pupils be successful virtual 25
learners. 26
(vii) Convene focus groups and conduct annual surveys of 27
teachers, administrators, pupils, parents, and others to identify 28
barriers and opportunities related to virtual learning. 29
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(viii) Produce an annual consumer awareness report for schools 1
and parents about effective virtual education providers and 2
education delivery models, performance data, cost structures, and 3
research trends. 4
(ix) Provide an internet-based platform that educators can use 5
to create student-centric learning tools and resources for sharing 6
in the state's open educational resource repository and facilitate 7
a user network that assists educators in using the content creation 8
platform and state repository for open educational resources. As 9
part of this initiative, the Michigan Virtual University shall work 10
collaboratively with districts and intermediate districts to 11
establish a plan to make available virtual resources that align to 12
Michigan's K to 12 curriculum standards for use by students, 13
educators, and parents. 14
(x) Create and maintain a public statewide catalog of virtual 15
learning courses being offered by all public schools and community 16
colleges in this state. The Michigan Virtual Learning Research 17
Institute shall identify and develop a list of nationally 18
recognized best practices for virtual learning and use this list to 19
support reviews of virtual course vendors, courses, and 20
instructional practices. The Michigan Virtual Learning Research 21
Institute shall also provide a mechanism for intermediate districts 22
to use the identified best practices to review content offered by 23
constituent districts. The Michigan Virtual Learning Research 24
Institute shall review the virtual course offerings of the Michigan 25
Virtual University, and make the results from these reviews 26
available to the public as part of the statewide catalog. The 27
Michigan Virtual Learning Research Institute shall ensure that the 28
statewide catalog is made available to the public on the Michigan 29
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Virtual University website and shall allow the ability to link it 1
to each district's website as provided for in section 21f. The 2
statewide catalog must also contain all of the following: 3
(A) The number of enrollments in each virtual course in the 4
immediately preceding school year. 5
(B) The number of enrollments that earned 60% or more of the 6
total course points for each virtual course in the immediately 7
preceding school year. 8
(C) The pass rate for each virtual course. 9
(xi) Support registration, payment services, and transcript 10
functionality for the statewide catalog and train key stakeholders 11
on how to use new features. 12
(xii) Collaborate with key stakeholders to examine district 13
level accountability and teacher effectiveness issues related to 14
virtual learning under section 21f and make findings and 15
recommendations publicly available. 16
(xiii) Provide a report on the activities of the Michigan 17
Virtual Learning Research Institute. 18
(3) To further enhance its expertise and leadership in virtual 19
learning, the Michigan Virtual University shall continue to operate 20
the Michigan Virtual School as a statewide laboratory and quality 21
model of instruction by implementing virtual and blended learning 22
solutions for Michigan schools in accordance with the following 23
parameters: 24
(a) The Michigan Virtual School must maintain its 25
accreditation status from recognized national and international 26
accrediting entities. 27
(b) The Michigan Virtual University shall use no more than 28
$1,000,000.00 of the amount allocated under this section to 29
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subsidize the cost paid by districts for virtual courses. 1
(c) In providing educators responsible for the teaching of 2
virtual courses as provided for in this section, the Michigan 3
Virtual School shall follow the requirements to request and assess, 4
and the department of state police shall provide, a criminal 5
history check and criminal records check under sections 1230 and 6
1230a of the revised school code, MCL 380.1230 and 380.1230a, in 7
the same manner as if the Michigan Virtual School were a school 8
district under those sections. 9
(4) From the funds allocated under subsection (1), the 10
Michigan Virtual University shall support the expansion of new 11
online and blended educator professional development programs. 12
(5) From the funds allocated under subsection (1), the 13
Michigan Virtual University shall operate a comprehensive statewide 14
laboratory designed to function as a hub for cutting-edge research, 15
the identification and dissemination of best practices, rigorous 16
experimentation, policy formulation, and proactive efforts to 17
enhance awareness about the responsible utilization of artificial 18
intelligence in schools. 19
(6) If the course offerings are included in the statewide 20
catalog of virtual courses under subsection (2)(b)(x), the Michigan 21
Virtual School operated by the Michigan Virtual University may 22
offer virtual course offerings, including, but not limited to, all 23
of the following: 24
(a) Information technology courses. 25
(b) College level equivalent courses, as that term is defined 26
in section 1471 of the revised school code, MCL 380.1471. 27
(c) Courses and dual enrollment opportunities. 28
(d) Programs and services for at-risk pupils. 29
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(e) High school equivalency test preparation courses for 1
adjudicated youth. 2
(f) Special interest courses. 3
(g) Professional development programs for teachers, school 4
administrators, other school employees, and school board members. 5
(7) If a home-schooled or nonpublic school student is a 6
resident of a district that subscribes to services provided by the 7
Michigan Virtual School, the student may use the services provided 8
by the Michigan Virtual School to the district without charge to 9
the student beyond what is charged to a district pupil using the 10
same services. 11
(8) By not later than December 1 of each fiscal year for which 12
funding is allocated under this section, the Michigan Virtual 13
University shall provide a report to the house and senate 14
appropriations subcommittees on school aid, the state budget 15
director, the house and senate fiscal agencies, and the department 16
that includes at least all of the following information related to 17
the Michigan Virtual School for the preceding fiscal year: 18
(a) A list of the districts served by the Michigan Virtual 19
School. 20
(b) A list of virtual course titles available to districts. 21
(c) The total number of virtual course enrollments and 22
information on registrations and completions by course. 23
(d) The overall course completion rate percentage. 24
(9) In addition to the information listed in subsection (8), 25
the report under subsection (8) must also include a plan to serve 26
at least 600 schools with courses from the Michigan Virtual School 27
or with content available through the internet-based platform 28
identified in subsection (2)(b)(ix). 29
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(10) The governor may appoint an advisory group for the 1
Michigan Virtual Learning Research Institute established under 2
subsection (2). The members of the advisory group serve at the 3
pleasure of the governor and without compensation. The purpose of 4
the advisory group is to make recommendations to the governor, the 5
legislature, and the president and board of the Michigan Virtual 6
University that will accelerate innovation in this state's 7
education system in a manner that will prepare elementary and 8
secondary students to be career and college ready and that will 9
promote the goal of increasing the percentage of residents of this 10
state with high-quality degrees and credentials to at least 60% by 11
2030. 12
(11) By not later than November 1 of each fiscal year for 13
which funding is allocated under this section, the Michigan Virtual 14
University shall submit to the house and senate appropriations 15
subcommittees on school aid, the state budget director, and the 16
house and senate fiscal agencies a detailed budget for that fiscal 17
year that includes a breakdown on its projected costs to deliver 18
virtual educational services to districts and a summary of the 19
anticipated fees to be paid by districts for those services. By not 20
later than March 1 each fiscal year for which funding is allocated 21
under this section, the Michigan Virtual University shall submit to 22
the house and senate appropriations subcommittees on school aid, 23
the state budget director, and the house and senate fiscal agencies 24
a breakdown on its actual costs to deliver virtual educational 25
services to districts and a summary of the actual fees paid by 26
districts for those services based on audited financial statements 27
for the immediately preceding fiscal year. 28
(12) As used in this section: 29
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(a) "Blended learning" means a hybrid instructional delivery 1
model where pupils are provided content, instruction, and 2
assessment, in part at a supervised educational facility away from 3
home where the pupil and a teacher with a valid Michigan teaching 4
certificate are in the same physical location and in part through 5
internet-connected learning environments with some degree of pupil 6
control over time, location, and pace of instruction. 7
(b) "Cyber school" means a full-time instructional program of 8
virtual courses for pupils that may or may not require attendance 9
at a physical school location. 10
(c) "Virtual course" means a course of study that is capable 11
of generating a credit or a grade and that is provided in an 12
interactive learning environment in which the majority of the 13
curriculum is delivered using the internet and in which pupils are 14
separated from their instructor or teacher of record by time or 15
location, or both. 16
Sec. 98d. (1) From the state school aid fund money 17
appropriated under section 11, there is allocated for 2026-2027 18
only an amount not to exceed $3,000,000.00 to Northern Michigan 19
University to support the MLC as described in this section. 20
Northern Michigan University shall not retain any portion of the 21
funding received under this section for administrative purposes and 22
shall provide funding to support the MLC. All of the following 23
apply to the MLC: 24
(a) The MLC must expand literacy programming aligned with this 25
state's pre-K to 12 educational standards over the air, online, and 26
in communities. 27
(b) The MLC shall provide over-the-air broadcasts 24 hours 28
each day for 7 days each week of quality instructional content that 29
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is aligned with this state's pre-K to 12 educational standards. 1
Over-the-air broadcasts as described in this subdivision must be 2
streamed live and must be archived for on-demand viewing on a 3
companion website, along with additional learning materials 4
relevant to lessons. 5
(c) The MLC must be managed and operated by DPTV, and DPTV 6
shall assume all risk, liability, and responsibility for the MLC in 7
accordance with regulations by the United States Federal 8
Communications Commission, PBS broadcast standards, and standard 9
nonprofit business standards. DPTV shall serve as the fiduciary 10
agent and service manager for the MLC. The MLC shall originate from 11
a central operations center that is responsible for providing the 12
infrastructure, content, and engagement of the MLC in partnership 13
with this state's educational leadership organizations. 14
(d) The MLC shall require that DPTV provide technology, 15
funding, staff training, and central management of the MLC to 16
station partners to insert additional channels into each station's 17
broadcast streams and to support staffing and engagement as 18
outlined in a memorandum of understanding among the stations. 19
(e) The MLC shall require that DPTV partner with at least 5 20
other Michigan public television stations, including, but not 21
limited to, WKAR, WGVU, WDCQ, WCMU, and WNMU, to deliver the over-22
the-air MLC broadcasts described in this section and to support 23
engagement with local educators. Stations described in this 24
subdivision must be able to use the infrastructure provided by the 25
MLC to develop their own local content that best serves their 26
communities. 27
(2) By not later than February 1, 2028, the MLC shall provide 28
a report to the house and senate appropriations subcommittees 29
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responsible for school aid, the house and senate fiscal agencies, 1
and the state budget director detailing the MLC's compliance with 2
ensuring that conditions listed under subsection (1) were met. 3
(3) Notwithstanding section 17b, the department shall make 4
payments under this section by not later than December 1, 2026. 5
(4) As used in this section: 6
(a) "DPTV" means Detroit Public Television. 7
(b) "MLC" means the Michigan Learning Channel. 8
Sec. 99. (1) From the state school aid fund money appropriated 9
in section 11, there is allocated an amount not to exceed 10
$500,000.00 for 2023-2024 only to Kentwood Public Schools and Oak 11
Park Schools for a plant-based school meals pilot grant program. 12
Grants shall be used for developing and implementing plant-based 13
meal options in school cafeterias, training school food service 14
staff in the preparation of plant-based meals, and purchasing 15
necessary kitchen equipment to facilitate the preparation of plant-16
based meals. Recipients of grants under this program shall submit a 17
report to the department detailing the use of funds and the impact 18
of the program on student meal choices and environmental 19
sustainability. 20
(2) From the general fund money appropriated in section 11, 21
there is allocated an amount not to exceed $500,000.00 for 2024-22
2025 only for a virtual reality youth peace literacy initiative 23
pilot program. 24
(3) From the general fund money appropriated in section 11, 25
there is allocated an amount not to exceed $1,000,000.00 for 2024-26
2025 only to the American Lightweight Materials Manufacturing 27
Innovation Institute, in partnership with the Michigan 28
Manufacturers Association, Amatrol, and the ATS LAB Midwest. Funds 29
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received under this subsection must be used to provide high schools 1
and intermediate districts in this state with competency-based, 2
technology infused talent development programs that provide 3
curricula, e-learning, hands-on e-learning systems, curricula-4
specific training equipment, installation, orientation, teacher 5
training, industry-recognized skill certifications, and connections 6
to local manufacturers for students in high schools and 7
intermediate districts in this state. 8
(4) From the state school aid fund money appropriated in 9
section 11, there is allocated an amount not to exceed 10
$2,500,000.00 for 2024-2025 only to the Dearborn City School 11
District for costs to expand the career and technical education 12
program for the district, including, but not limited to, expansion 13
of a cybersecurity certificate program. Costs in this subsection 14
may include both operational and capital costs. 15
(5) From the state school aid fund money appropriated in 16
section 11, there is allocated an amount not to exceed 17
$1,500,000.00 for 2024-2025 only to the Dearborn City School 18
District to support the construction of outdoor classrooms and 19
other green space for Salina Intermediate School in the Dearborn 20
City School District. 21
(6) From the state school aid fund money appropriated in 22
section 11, there is allocated an amount not to exceed 23
$2,000,000.00 for 2024-2025 only to the School District of the City 24
of Harper Woods to support the costs for construction and operation 25
of the daily life skills training center, an educational and skills 26
development program with individualized training to improve a 27
child's abilities to independently perform routine daily activities 28
and effectively use community resources. 29
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(7) From the state school aid fund money appropriated in 1
section 11, there is allocated an amount not to exceed 2
$2,500,000.00 for 2024-2025 only to the Lansing Public School 3
District for development and infrastructure improvements. 4
(8) From the state school aid fund money appropriated in 5
section 11, there is allocated for 2024-2025 only an amount not to 6
exceed $700,000.00 to Clintondale Community Schools for safety and 7
security upgrades. 8
(9) From the general fund money appropriated in section 11, 9
there is allocated for 2024-2025 only an amount not to exceed 10
$500,000.00 to the city of Algonac in St. Clair County to support 11
asbestos remediation and redevelopment in a former school building. 12
(10) From the state school aid fund money appropriated in 13
section 11, there is allocated for 2024-2025 only an amount not to 14
exceed $700,000.00 to South Lyon Community Schools for student 15
mental health services. 16
(11) From the state school aid fund money appropriated in 17
section 11, there is allocated for 2024-2025 only an amount not to 18
exceed $200,000.00 to Farmington Public School District for high-19
intensity tutoring. 20
(12) From the general fund money appropriated in section 11, 21
there is allocated for 2024-2025 only an amount not to exceed 22
$2,100,000.00 to the Marygrove Conservancy for the creation of the 23
Marygrove Film School. 24
(13) From the general fund money appropriated in section 11, 25
there is allocated for 2024-2025 only an amount not to exceed 26
$2,900,000.00, and from the state school aid fund money 27
appropriated in section 11, there is allocated for 2024-2025 only 28
an amount not to exceed $3,100,000.00 to Rudyard Area Schools for 29
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infrastructure. 1
(14) From the general fund money appropriated in section 11, 2
there is allocated for 2024-2025 only an amount not to exceed 3
$250,000.00 to Brookview Montessori School for structural updates, 4
including, but not limited to, electrical and HVAC. 5
(15) From the general fund money appropriated in section 11, 6
there is allocated for 2024-2025 only an amount not to exceed 7
$100,000.00 for Okemos Public Montessori at Central for district 8
lead abatement. 9
(16) From the general fund money appropriated in section 11, 10
there is allocated for 2024-2025 only an amount not to exceed 11
$500,000.00 to Wellspring Detroit to support the academic and youth 12
development program. 13
(17) From the state school aid fund money appropriated in 14
section 11, there is allocated for 2024-2025 only an amount not to 15
exceed $500,000.00 to a district or intermediate district to 16
support the implementation of the MI Student Voice Perception 17
Survey. 18
(18) From the general fund money appropriated in section 11, 19
there is allocated for 2024-2025 only an amount not to exceed 20
$3,700,000.00 to the recipients identified in this subsection to 21
support capital costs to increase safety of student pedestrians. 22
(a) A recipient of a grant under this subsection shall use the 23
funds to increase the safety of student pedestrians through capital 24
improvements. A grant recipient may enter into agreements with 25
other units of local government to complete eligible projects. 26
Improvements may include, but are not limited to, all of the 27
following: 28
(i) Signage and painting for crosswalks. 29
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(ii) Installing or repairing sidewalks. 1
(iii) Adding turning lanes. 2
(iv) Installing or repairing traffic signal lights. 3
(b) From the allocation in this subsection, $3,000,000.00 is 4
allocated to Macomb Township in Macomb County for road, signal, and 5
pedestrian crossing improvements at the intersection of 21 Mile 6
Road and Heydenreich Road. The purpose of the improvements is to 7
increase safety for student pedestrians at nearby schools. 8
(c) From the allocation in this subsection, $250,000.00 is 9
allocated to the Woodhaven-Brownstown School District to construct 10
sidewalks to connect nearby residential areas to schools in the 11
district. 12
(d) From the allocation in this subsection, $450,000.00 is 13
allocated to the Village of Brooklyn to partner with the Columbia 14
Charter School District and Columbia Charter Township to improve 15
student pedestrian safety. 16
(e) The funds allocated under this subsection for 2024-2025 17
are a work project appropriation, and any unexpended funds for 18
2024-2025 are carried forward into 2025-2026. The purpose of the 19
work project is to continue to provide support for capital costs to 20
increase safety of student pedestrians. The estimated completion 21
date of the work project is September 30, 2029. 22
(19) From the state school aid fund money appropriated in 23
section 11, there is allocated for 2024-2025 only an amount not to 24
exceed $7,000,000.00 to Detroit Public Schools Community District 25
to offset the cost of relocating the Davis Aerospace Technical High 26
School to the Coleman A. Young International Airport. 27
Notwithstanding section 18a, funds allocated under this subsection 28
may be available for expenditure until September 30, 2027. A 29
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recipient of funding under this subsection must return any 1
unexpended funds to the department in a manner prescribed by the 2
department by not later than October 30, 2027. 3
(20) From the state school aid fund money appropriated in 4
section 11, there is allocated for 2024-2025 only an amount not to 5
exceed $1,200,000.00 to Grand Rapids Public Schools to supplement 6
funding for the school meals program in section 30d. 7
(21) From the state school aid fund money appropriated in 8
section 11, there is allocated for 2024-2025 only $750,000.00 to 9
Livonia Public Schools to support the Thrive Track – Healthy Living 10
Skills for Independence program. 11
(22) From the state school aid fund money appropriated in 12
section 11, there is allocated for 2024-2025 only $450,000.00 to 13
Grosse Pointe Public Schools for technology costs. 14
(23) From the state school aid fund money appropriated in 15
section 11, there is allocated for 2024-2025 only $1,000,000.00 to 16
a district or intermediate district to partner with the Arab 17
Community Center for Economic and Social Services (ACCESS) in 18
Dearborn to rehabilitate and expand the ACCESS Innovation Center. 19
(24) From the state school aid fund money appropriated in 20
section 11, there is allocated for 2024-2025 only $1,200,000.00 to 21
Lansing Public School District to support renovation of the Don 22
Johnson Fieldhouse and expansion of the Lansing Student Development 23
Program. 24
(25) From the state school aid fund money appropriated in 25
section 11, there is allocated for 2024-2025 only $1,000,000.00 to 26
Clintondale Community Schools for expenses for school buildings 27
related to flood damage. 28
(26) From the state school aid fund money appropriated in 29
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section 11, there is allocated for 2024-2025 only $3,000,000.00 to 1
an intermediate district to partner with the Michigan Regional 2
Council of Carpenters and Millwrights, an entity located in the 3
city of Detroit, for the schools to tools program, which exposes 4
middle and high school students to the building trades and to 5
apprenticeship opportunities. 6
(27) From the state school aid fund money appropriated in 7
section 11, there is allocated for 2024-2025 only $12,000,000.00 to 8
an intermediate district to partner with the Sam Beauford 9
Woodworking Institute, a 501(c)(3) entity located in the city of 10
Adrian, to support the expansion of education opportunities. 11
(28) From the state school aid fund money appropriated in 12
section 11, there is allocated $245,000.00 for 2024-2025 only to 13
Mid Peninsula School District for improvements to a heating, 14
ventilation, and air conditioning system. 15
(29) The funds allocated under this section for 2024-2025 are 16
a work project appropriation, and any unexpended funds for 2024-17
2025 are carried forward into 2025-2026. The purpose of the work 18
project is to complete projects described in this section. The 19
estimated completion date of the work project is September 30, 20
2026. 21
(30) $53,000,000.00 for 2026-2027 only for district supports 22
and pilot programs. Notwithstanding section 17b, the department 23
shall make payments under this section on a schedule determined by 24
the department. 25
Sec. 99h. (1) From the state school aid pupil support reserve 26
fund money appropriated in section 11, there is allocated an amount 27
not to exceed $5,000,000.00 $6,000,000.00 for 2025-2026 2026-2027 28
only for competitive grants to districts and intermediate 29
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districts, and from the general pupil support reserve fund money 1
appropriated in section 11, there is allocated $600,000.00 2
$720,000.00 for 2025-2026 2026-2027 only for competitive grants to 3
nonpublic schools, that provide pupils in grades pre-K to 12 with 4
expanded opportunities to improve mathematics, science, computer 5
science, and technology skills by participating in robotics 6
competition programs hosted by program providers including, but not 7
limited to, FIRST (for inspiration and recognition of science and 8
technology) Robotics, including FIRST Lego League - Discover, 9
Explore, and Challenge, FIRST Tech challenge, and FIRST Robotics 10
competition, LTU Robofest, MATE (Marine Advanced Technical 11
Education), REC (Robotics Education Competition) Foundation, Square 12
One Education Network, VEX, and other providers approved by the 13
department. It is the intent of the legislature that the 14
appropriations under this section will be funded with state school 15
aid pupil support reserve fund money and general pupil support 16
reserve fund money through 2027-2028. All approved providers shall 17
make all programs available to students in this state regardless of 18
geographical location. Programs funded under this section are 19
intended to increase the number of pupils demonstrating proficiency 20
in science and mathematics on the state assessments and to increase 21
the number of pupils who are college- and career-ready upon high 22
school graduation. Notwithstanding section 17b, the department 23
shall make grant payments to districts, nonpublic schools, and 24
intermediate districts under this section on a schedule determined 25
by the department. The department shall set maximum grant awards 26
for each different level of programming and competition in a manner 27
that both maximizes the number of teams that will be able to 28
receive funds and expands the geographical distribution of teams. 29
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Districts and intermediate districts that receive funds under this 1
section must provide relevant student participation information, as 2
determined by the department, to program and competition providers 3
described in this section. For a district or intermediate district 4
to count a program competition provider for purposes of payments 5
under this section, the program and competition providers must 6
agree to aggregate data received by districts and intermediate 7
districts and provide this information to the department in a form 8
and manner determined by the department. 9
(2) The department shall do all of the following for purposes 10
of this section: 11
(a) Both of the following by not later than 60 days after the 12
state school aid appropriations bill for the current fiscal year is 13
enacted into law or October 1 of the current fiscal year, whichever 14
is later: 15
(i) Open applications for funding under this section to all 16
districts, nonpublic schools, and intermediate districts. 17
(ii) Publish a list of approved programs and vendors for 18
purposes of this section in a manner that is accessible to all 19
applicants. To obtain approval under this subparagraph, a program 20
or vendor must submit to the department registration information, 21
including any fees; pledge that it will post this information on 22
its website; and, by not later than January 1 of the current fiscal 23
year, submit this information to the department for publication on 24
the department's website. 25
(b) By not later than 60 days after applications are opened as 26
described in subdivision (a), close applications under this 27
section. 28
(c) By not later than 60 days after applications are closed as 29
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described in subdivision (b), make all determinations concerning 1
funding under this section. 2
(d) By not later than July 1 of the current fiscal year, 3
publish a document listing the requirements for becoming an 4
approved program or vendor under subdivision (a). 5
(3) Except as otherwise provided under this subsection, if 6
funding under this section is insufficient to fulfill all funding 7
requests by qualified applicants under this section, the department 8
shall prorate the total funding allocated under this section 9
equally among all qualified applicants. However, for funding under 10
this section toward grants under subsection (5)(b), in its 11
proration under this subsection, the department shall ensure that 12
each district is paid in an amount equal to the percentage the 13
department would have paid the district in grant funding under 14
subsection (5)(b), but for proration under this subsection, with no 15
district receiving a grant under subsection (5)(b) in an amount 16
that is greater than the district's total accrued costs under 17
subsection (5)(b). 18
(4) A district, nonpublic school, or intermediate district 19
applying for a grant under this section must submit an application 20
in a form and manner prescribed by the department. To be eligible 21
for a grant, a district, nonpublic school, or intermediate district 22
must demonstrate in its application that the district, nonpublic 23
school, or intermediate district has established a partnership for 24
the purposes of the robotics program with at least 1 sponsor, 25
business entity, higher education institution, technical school, or 26
individual, must submit a budget, and must provide a local in-kind 27
or cash match from other private or local funds of at least 25% of 28
the cost of the robotics program award. 29
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(5) The department shall distribute the grant funding under 1
this section for the following purposes: 2
(a) Grants to districts, nonpublic schools, or intermediate 3
districts to pay for stipends not to exceed $1,500.00 per building 4
for coaching. 5
(b) Grants to districts, nonpublic schools, or intermediate 6
districts for event registrations, materials, travel costs, and 7
other expenses associated with the preparation for and attendance 8
at robotics events and competitions. 9
(c) Grants to districts, nonpublic schools, or intermediate 10
districts for awards to teams that advance to the next levels of 11
competition as determined by the department. The department shall 12
determine an equal amount per team for those teams that advance. 13
(6) A nonpublic school that receives a grant under this 14
section may use the funds for either robotics or Science Olympiad 15
programs. 16
(7) To be eligible to receive funds under this section, a 17
nonpublic school must be a nonpublic school registered with the 18
department and must meet all applicable state reporting 19
requirements for nonpublic schools. 20
(8) To be eligible to receive a grant under this section, a 21
district, nonpublic school, or intermediate district must do all of 22
the following: 23
(a) If the district, nonpublic school, or intermediate 24
district is requesting funding for more than 1 team for a building, 25
meet the minimum requirements for team size as determined by the 26
approved program provider. 27
(b) Participate in at least the minimum number of competitions 28
as determined by the approved program provider. 29
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(c) Participate in at least 1 in-person competition. 1
(9) For purposes of this section, an approved program or 2
vendor under this section that provides a program under this 3
section shall not work with the department to set prices or 4
policies for the program. 5
(10) As used in this section, "current fiscal year" means the 6
fiscal year for which an allocation is made under this section. 7
Sec. 99o. (1) From the state school aid fund money 8
appropriated in section 11, there is allocated an amount not to 9
exceed $10,000,000.00 for 2026-2027 only for grants to districts 10
and intermediate districts for school-based driver's training 11
programs. 12
(2) Grants under this section must be used to pay for the 13
costs of implementing a driver's training program. Costs may 14
include, but are not limited to, salaries and benefits for staff, 15
vehicle purchases or leases, insurance, materials and equipment, 16
and any other costs necessary to run a program. 17
(3) To receive funding under this section, districts and 18
intermediate districts must apply in a form and manner prescribed 19
by the department. An applicant shall certify that the applicant 20
will run the program using district or intermediate district 21
employees and will not outsource any programming to an outside 22
third party. 23
(4) The maximum grant amount for an applicant is $500,000.00. 24
The department shall prioritize applicants that received a grant 25
for the same purpose in a previous year, including awards under 26
this section, former section 99ii, and former section 99jj, as long 27
as the applicant continues the driver's training program for 28
another year. Afterwards, the department shall prioritize awards on 29
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a first-come, first-served basis. No district or intermediate 1
district may receive more than 1 grant in a single fiscal year. 2
(5) The funds allocated under this section for 2026-2027 are a 3
work project appropriation, and any unexpended funds for 2026-2027 4
are carried forward into 2027-2028. The purpose of the work project 5
is to continue support for district- and intermediate-district-run 6
driver's training programs. The estimated completion date of the 7
work project is September 30, 2031. 8
(6) Notwithstanding section 17b, the department shall make 9
payments under this section on a schedule determined by the 10
department. 11
Sec. 99s. (1) From state school aid fund money appropriated 12
under section 11, there is allocated for 2026-2027 an amount not to 13
exceed $8,000,000.00 for Michigan science, technology, engineering, 14
and mathematics programs. Programs funded under this section are 15
intended to increase the number of pupils demonstrating proficiency 16
in science and mathematics on the state assessments, to increase 17
the number of pupils who are college- and career-ready upon high 18
school graduation, and to promote certificate and degree attainment 19
in STEM fields. Notwithstanding section 17b, the department shall 20
make payments under this section on a schedule determined by the 21
department. 22
(2) The MiSTEM council annually shall review and make 23
recommendations to the governor, the legislature, and the 24
department concerning changes to the statewide strategy adopted by 25
the council for delivering STEM education-related opportunities to 26
pupils. The MiSTEM council shall use funds received under this 27
section to ensure that the MiSTEM council's members or their 28
designees are trained in a third-party evaluation system such as 29
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the Change the Equation STEMworks program for the purpose of rating 1
STEM programs. 2
(3) The MiSTEM council shall make specific funding 3
recommendations for the funds allocated under subsection (4) by 4
December 15 of each fiscal year. Each specific funding 5
recommendation must be for a program or demonstration grant 6
approved by the MiSTEM council. All of the following apply: 7
(a) To be eligible for MiSTEM council approval as described in 8
this subsection, a program must satisfy all of the following: 9
(i) Align with this state's academic standards. 10
(ii) Have STEMworks or other third-party certification. 11
(iii) Provide project-based experiential learning, student 12
programming, or educator professional learning experiences. 13
(iv) Focus predominantly on classroom-based STEM experiences or 14
professional learning experiences. 15
(b) The MiSTEM council shall approve programs that represent 16
all network regions and include a diverse array of options for 17
students and educators. 18
(c) To be eligible for MiSTEM council approval as described in 19
this subsection, a demonstration grant must satisfy all of the 20
following: 21
(i) Align with this state's academic standards. 22
(ii) In collaboration with the department, scale project, 23
problem, or place-based learning in a building or district in 24
support of the statewide STEM strategy as recommended by the MiSTEM 25
council. 26
(d) The MiSTEM council is encouraged to work with the MiSTEM 27
network to develop locally and regionally developed programs, 28
demonstration grants, and professional learning experiences for the 29
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programs on the list of approved programs. At the direction of the 1
MiSTEM council, funds can be used to evaluate and market regions, 2
programs, and demonstration grants. 3
(e) If the MiSTEM council is unable to make specific funding 4
recommendations by December 15 of a fiscal year, the department 5
shall award and distribute the funds allocated under subsection (4) 6
on a competitive grant basis that at least follows the statewide 7
STEM strategy plan and rating system recommended by the MiSTEM 8
council. Each grant must provide STEM education-related 9
opportunities for pupils. 10
(4) From the state school aid fund money allocated under 11
subsection (1), there is allocated for 2026-2027 an amount not to 12
exceed $3,800,000.00 for the purpose of funding programs or 13
demonstration grants under this section for 2026-2027 as 14
recommended by the MiSTEM council. 15
(5) From the state school aid fund money allocated under 16
subsection (1), there is allocated an amount not to exceed 17
$4,200,000.00 for 2026-2027 to support the activities and programs 18
of the MiSTEM network regions. From the funds allocated under this 19
subsection, the department shall award the fiscal agent for each 20
MiSTEM network region $220,000.00 for the base operations of each 21
region. The department shall distribute the remaining funds to each 22
fiscal agent in an equal amount per pupil, based on the number of K 23
to 12 pupils enrolled in districts within each region in the 24
immediately preceding fiscal year. 25
(6) A MiSTEM network region shall do all of the following: 26
(a) Collaborate with the career and educational advisory 27
council that is located in the MiSTEM region and the department to 28
develop a regional strategic plan for STEM education that creates a 29
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robust regional STEM culture, that empowers STEM teachers, that 1
integrates business and education into the STEM network, and that 2
ensures high-quality STEM experiences for pupils. At a minimum, a 3
regional STEM strategic plan described in this subdivision should 4
do all of the following in collaboration with the department: 5
(i) Identify regional employer need for STEM. 6
(ii) Identify processes for regional employers and educators to 7
create guided pathways for STEM careers that include internships or 8
externships, apprenticeships, and other experiential engagements 9
for pupils. 10
(iii) Identify educator professional learning opportunities, 11
including internships or externships and apprenticeships, that 12
integrate this state's science standards into high-quality STEM 13
experiences that engage pupils. 14
(b) Facilitate regional STEM events such as educator and 15
employer networking and STEM career fairs to raise STEM awareness. 16
(c) Contribute to the MiSTEM website and engage in other 17
MiSTEM network functions to further the mission of STEM in this 18
state in coordination with the MiSTEM council and the department of 19
labor and economic opportunity. 20
(d) Facilitate application and implementation of state and 21
federal funds under this subsection and any other grants or funds 22
for the MiSTEM network region. 23
(e) Work with districts to provide STEM programming and 24
professional learning. 25
(f) Coordinate recurring discussions and work with the career 26
and educational advisory council to ensure that feedback and best 27
practices are being shared, including funding, program, 28
professional learning opportunities, and regional strategic plans. 29
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(g) In collaboration with the department, deploy marketing and 1
outreach efforts to publish the availability of STEM learning 2
opportunities. 3
(7) To receive funds under this section, a grant recipient 4
must allow access for the department or the department's designee 5
to audit all records related to the program for which the grant 6
recipient received those funds. The grant recipient shall reimburse 7
the state for all disallowances found in the audit. 8
(8) To receive funds under this section, a grant recipient 9
must provide at least a 10% local match from local public or 10
private resources for the funds received under this subsection. 11
(9) By not later than July 1 of each fiscal year for which 12
funding is allocated under this section, grant recipients shall 13
report to the executive director of the MiSTEM network in a form 14
and manner prescribed by the executive director on performance 15
measures developed by the MiSTEM network regions and approved by 16
the executive director. The performance measures must be designed 17
to ensure that the activities of the MiSTEM network are improving 18
student academic outcomes. The report described in this subsection 19
must be published on a publicly accessible website. 20
(10) The MiSTEM network may receive funds from private 21
sources. If the MiSTEM network receives funds from private sources, 22
the MiSTEM network shall expend those funds in alignment with the 23
statewide STEM strategy. 24
(11) Not more than 5% of funds awarded under this section may 25
be retained by a fiscal agent. 26
(12) As used in this section: 27
(a) "Career and educational advisory council" means an 28
advisory council to the local workforce development boards located 29
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in a prosperity region consisting of educational, employer, labor, 1
and parent representatives. 2
(b) "Department" means the department of labor and economic 3
opportunity. 4
(c) "MiSTEM council" means the Michigan Science, Technology, 5
Engineering, and Mathematics Education Advisory Council created as 6
an advisory body within the department of labor and economic 7
opportunity by Executive Reorganization Order No. 2019-3, MCL 8
125.1998. 9
(d) "STEM" means science, technology, engineering, and 10
mathematics delivered in an integrated fashion using cross-11
disciplinary learning experiences that can include language arts, 12
performing and fine arts, and career and technical education. 13
Sec. 101. (1) To be eligible to receive state aid under this 14
article, not later than the fifth Wednesday after the pupil 15
membership count day and not later than the fifth Wednesday after 16
the supplemental count day, each district superintendent shall 17
submit and certify to the center and the intermediate 18
superintendent, in the form and manner prescribed by the center, 19
the number of pupils enrolled and in regular daily attendance, 20
including identification of tuition-paying pupils, in the district 21
as of the pupil membership count day and as of the supplemental 22
count day, as applicable, for the current school year. In addition, 23
a district maintaining school during the entire year shall submit 24
and certify to the center and the intermediate superintendent, in 25
the form and manner prescribed by the center, the number of pupils 26
enrolled and in regular daily attendance in the district for the 27
current school year pursuant to rules promulgated by the 28
superintendent. Not later than the sixth Wednesday after the pupil 29
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membership count day and not later than the sixth Wednesday after 1
the supplemental count day, the district shall resolve any pupil 2
membership conflicts with another district, correct any data 3
issues, and recertify the data in a form and manner prescribed by 4
the center and file the certified data with the intermediate 5
superintendent. If a district fails to submit and certify the 6
attendance data, as required under this subsection, the center 7
shall notify the department and the department shall withhold state 8
aid due to be distributed under this article from the defaulting 9
district immediately, beginning with the next payment after the 10
failure and continuing with each payment until the district 11
complies with this subsection. If a district does not comply with 12
this subsection by the end of the fiscal year, the district 13
forfeits the amount withheld. A person who willfully falsifies a 14
figure or statement in the certified and sworn copy of enrollment 15
is subject to penalty as prescribed by section 161. 16
(2) To be eligible to receive state aid under this article, 17
not later than the twenty-fourth Wednesday after the pupil 18
membership count day and not later than the twenty-fourth Wednesday 19
after the supplemental count day, an intermediate district shall 20
submit to the center, in a form and manner prescribed by the 21
center, the audited enrollment and attendance data as described in 22
subsection (1) for the pupils of its constituent districts and of 23
the intermediate district. If an intermediate district fails to 24
submit the audited data as required under this subsection, the 25
department shall withhold state aid due to be distributed under 26
this article from the defaulting intermediate district immediately, 27
beginning with the next payment after the failure and continuing 28
with each payment until the intermediate district complies with 29
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this subsection. If an intermediate district does not comply with 1
this subsection by the end of the fiscal year, the intermediate 2
district forfeits the amount withheld. 3
(3) Except as otherwise provided in subsections (11) and (12) 4
all of the following apply to the provision of pupil instruction: 5
(a) Except as otherwise provided in this section, each 6
district shall provide at least 1,098 hours and 180 days of pupil 7
instruction. If a collective bargaining agreement that provides a 8
complete school calendar was in effect for employees of a district 9
as of June 24, 2014, and if that school calendar is not in 10
compliance with this subdivision, then this subdivision does not 11
apply to that district until after the expiration of that 12
collective bargaining agreement. A district may apply for a waiver 13
under subsection (9) or subdivision (h) from the requirements of 14
this subdivision. 15
(b) Except as otherwise provided in this article, a district 16
failing to comply with the required minimum hours and days of pupil 17
instruction under this subsection forfeits from its total state aid 18
allocation an amount determined by applying a ratio of the number 19
of hours or days the district was in noncompliance in relation to 20
the required minimum number of hours and days under this 21
subsection. Not later than the first business day in August, the 22
board of each district shall either certify to the department that 23
the district was in full compliance with this section regarding the 24
number of hours and days of pupil instruction in the previous 25
school year, or report to the department, in a form and manner 26
prescribed by the center, each instance of noncompliance. If the 27
district did not provide at least the required minimum number of 28
hours and days of pupil instruction under this subsection, the 29
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department shall make the deduction of state aid in the following 1
fiscal year from the first payment of state school aid. A district 2
is not subject to forfeiture of funds under this subsection for a 3
fiscal year in which a forfeiture was already imposed under 4
subsection (6). 5
(c) Hours or days lost because of strikes or teachers' 6
conferences are not counted as hours or days of pupil instruction. 7
(d) Except as otherwise provided in subdivisions (e) and (f), 8
this subsection, if a district does not have at least 75% of the 9
district's membership in attendance on any day of pupil 10
instruction, the department shall pay the district state aid in 11
that proportion of 1/180 that the actual percent of attendance 12
bears to 75%. 13
(e) If a district adds 1 or more days of pupil instruction to 14
the end of its instructional calendar for a school year to comply 15
with subdivision (a) because the district otherwise would fail to 16
provide the required minimum number of days of pupil instruction 17
even after the operation of subsection (4) due to conditions not 18
within the control of school authorities, then subdivision (d) does 19
not apply for any day of pupil instruction that is added to the end 20
of the instructional calendar. Instead, for any of those days, if 21
the district does not have at least 60% of the district's 22
membership in attendance on that day, the department shall pay the 23
district state aid in that proportion of 1/180 that the actual 24
percentage of attendance bears to 60%. For any day of pupil 25
instruction added to the instructional calendar as described in 26
this subdivision, the district shall report to the department the 27
percentage of the district's membership that is in attendance, in 28
the form and manner prescribed by the department. 29
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(f) At the request of a district that operates a department-1
approved alternative education program and that does not provide 2
instruction for pupils in all of grades K to 12, the superintendent 3
shall grant a waiver from the requirements of subdivision (d). The 4
waiver must provide that an eligible district is subject to the 5
proration provisions of subdivision (d) only if the district does 6
not have at least 50% of the district's membership in attendance on 7
any day of pupil instruction. In order to be eligible for this 8
waiver, a district must maintain records to substantiate its 9
compliance with the following requirements: 10
(i) The district offers the minimum hours of pupil instruction 11
as required under this section. 12
(ii) For each enrolled pupil, the district uses appropriate 13
academic assessments to develop an individual education plan that 14
leads to a high school diploma. 15
(iii) The district tests each pupil to determine academic 16
progress at regular intervals and records the results of those 17
tests in that pupil's individual education plan. 18
(g) All of the following apply to a waiver granted under 19
subdivision (f): 20
(i) If the waiver is for a blended model of delivery, a waiver 21
that is granted for the 2011-2012 fiscal year or a subsequent 22
fiscal year remains in effect unless it is revoked by the 23
superintendent. 24
(ii) If the waiver is for a 100% online model of delivery and 25
the educational program for which the waiver is granted makes 26
educational services available to pupils for a minimum of at least 27
1,098 hours during a school year and ensures that each pupil 28
participates in the educational program for at least 1,098 hours 29
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during a school year, a waiver that is granted for the 2011-2012 1
fiscal year or a subsequent fiscal year remains in effect unless it 2
is revoked by the superintendent. 3
(iii) A waiver that is not a waiver described in subparagraph 4
(i) or (ii) is valid for 3 fiscal years, unless it is revoked by the 5
superintendent, and must be renewed at the end of the 3-year period 6
to remain in effect. 7
(h) For the 2024-2025 school year only, a district does not 8
need to meet the minimum number of hours and days of pupil 9
instruction requirement under subdivision (a) if that district 10
meets all of the following requirements: 11
(i) The district is located wholly or partially in a county 12
that is covered by a state of emergency declared by the governor. 13
(ii) A majority of the district board votes to exempt the 14
district from the minimum number of hours and days of pupil 15
instruction required under subdivision (a). 16
(iii) The vote by the district board under subparagraph (ii) 17
exempts the district from providing only the hours and days of 18
pupil instruction actually missed due to the state of emergency. 19
(iv) The vote by the district board under subparagraph (ii) 20
exempts the district from not more than 15 days of pupil 21
instruction required under subdivision (a). The amount that may be 22
exempted under this subdivision is in addition to any days counted 23
as pupil instruction under subsection (4). 24
(h) Subdivision (d) does not apply to a district-operated 25
special education program approved by the department if the 26
district-operated special education program's instructional 27
calendar exceeds 180 days of pupil instruction. For any day of 28
instruction provided as part of a district-operated special 29
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education program described in this subdivision, the district-1
operated special education program is exempt from the attendance 2
threshold established under subdivision (d), provided that the 3
district-operated special education program offers the minimum 4
hours of pupil instruction required under this section and 5
maintains documentation of the program's approved instructional 6
calendar. 7
(i) At the request of a district with fewer than 100 pupils in 8
membership as reported in the most recent fall pupil count, the 9
superintendent shall grant a waiver from the requirements of 10
subdivision (d) if the district demonstrates that the absence of a 11
single household may materially reduce the district's daily 12
attendance percentage below the threshold established in 13
subdivision (d). A waiver granted under this subdivision must 14
provide that the district is subject to the proration provisions of 15
subdivision (d) only if the district does not have at least 60% of 16
the district's membership in attendance on any day of pupil 17
instruction. The district shall maintain records necessary to 18
substantiate the district's eligibility for a waiver granted under 19
this subdivision. 20
(j) (i) The superintendent shall promulgate rules for the 21
implementation of this subsection. 22
(4) All of the following apply to the counting of days and 23
hours of pupil instruction under this section: 24
(a) Except as otherwise provided in this subsection, the first 25
6 days or the equivalent number of hours for which pupil 26
instruction is not provided because of conditions not within the 27
control of school authorities, such as severe storms, fires, 28
epidemics, utility power unavailability, water or sewer failure, or 29
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health conditions as defined by the city, county, or state health 1
authorities, are counted as hours and days of pupil instruction. 2
(b) With the approval of the superintendent of public 3
instruction, the department shall count as hours and days of pupil 4
instruction for a fiscal year not more than 3 additional days or 5
the equivalent number of additional hours for which pupil 6
instruction is not provided in a district due to unusual and 7
extenuating occurrences resulting from conditions not within the 8
control of school authorities such as those conditions described in 9
this subsection. 10
(c) A district that counts hours or days of professional 11
development for teachers as hours or days of pupil instruction, as 12
provided under subsection (10), is eligible to have additional 13
hours or days counted as hours and days of pupil instruction as 14
provided under subdivision (b) to the same extent as a district 15
that does not count hours or days of professional development for 16
teachers as hours or days of pupil instruction. 17
(d) In deciding whether or not to approve the counting of 18
additional hours or days of pupil instruction under subdivision (b) 19
for a district, the superintendent of public instruction shall not 20
take into account whether or not the district counts hours or days 21
of professional development for teachers as hours or days of pupil 22
instruction, as provided under subsection (10). 23
(e) Subsequent hours or days beyond those described in 24
subdivisions (a) and (b) are not counted as hours or days of pupil 25
instruction. 26
(5) A district does not forfeit part of its state aid 27
appropriation because it adopts or has in existence an alternative 28
scheduling program for pupils in kindergarten if the program 29
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provides at least the number of hours required under subsection (3) 1
for a full-time equated membership for a pupil in kindergarten as 2
provided under section 6(4). 3
(6) In addition to any other penalty or forfeiture under this 4
section, if at any time the department determines that 1 or more of 5
the following have occurred in a district, the district forfeits in 6
the current fiscal year beginning in the next payment to be 7
calculated by the department a proportion of the funds due to the 8
district under this article that is equal to the proportion below 9
the required minimum number of hours and days of pupil instruction 10
under subsection (3), as specified in the following: 11
(a) The district fails to operate its schools for at least the 12
required minimum number of hours and days of pupil instruction 13
under subsection (3) in a school year, including hours and days 14
counted under subsection (4). 15
(b) The board of the district takes formal action not to 16
operate its schools for at least the required minimum number of 17
hours and days of pupil instruction under subsection (3) in a 18
school year, including hours and days counted under subsection (4). 19
(7) In providing the minimum number of hours and days of pupil 20
instruction required under subsection (3), a district shall use the 21
following guidelines, and a district shall maintain records to 22
substantiate its compliance with the following guidelines: 23
(a) Except as otherwise provided in this subsection, a pupil 24
must be scheduled for at least the required minimum number of hours 25
of instruction, excluding study halls, or at least the sum of 90 26
hours plus the required minimum number of hours of instruction, 27
including up to 2 study halls. 28
(b) The time a pupil is assigned to any tutorial activity in a 29
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block schedule may be considered instructional time, unless that 1
time is determined in an audit to be a study hall period. 2
(c) Except as otherwise provided in this subdivision, a pupil 3
in grades 9 to 12 for whom a reduced schedule is determined to be 4
in the individual pupil's best educational interest, or a pupil in 5
grades 6 to 8 for whom a reduced schedule is determined to be in 6
the individual pupil's best educational interest due to the pupil's 7
participation in an advanced curriculum, must be scheduled for a 8
number of hours equal to at least 80% of the required minimum 9
number of hours of pupil instruction to be considered a full-time 10
equivalent pupil. A pupil in grades 6 to 12 who is scheduled in a 11
4-block schedule may receive a reduced schedule under this 12
subsection if the pupil is scheduled for a number of hours equal to 13
at least 75% of the required minimum number of hours of pupil 14
instruction to be considered a full-time equivalent pupil. 15
(d) For a pupil in grades 9 to 12 enrolled in a cooperative 16
education program, or for a special education pupil, in determining 17
full-time equated membership for that pupil, the pupil is not 18
considered less than a full-time equated pupil solely because of 19
the effect of the pupil's enrollment in the cooperative education 20
program or special education program, including necessary travel 21
time, on the number of class hours provided by the district to the 22
pupil. 23
(e) In grades 7 through 12, instructional time that is part of 24
a Junior Reserve Officer Training Corps (JROTC) program is 25
considered to be pupil instruction time regardless of whether the 26
instructor is a certificated teacher if all of the following are 27
met: 28
(i) The instructor has met all of the requirements established 29
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by the United States Department of Defense and the applicable 1
branch of the armed services for serving as an instructor in the 2
Junior Reserve Officer Training Corps program. 3
(ii) The board of the district or intermediate district 4
employing or assigning the instructor complies with the 5
requirements of sections 1230 and 1230a of the revised school code, 6
MCL 380.1230 and 380.1230a, with respect to the instructor to the 7
same extent as if employing the instructor as a regular classroom 8
teacher. 9
(8) Except as otherwise provided in subsections (11) and (12), 10
the department shall apply the guidelines under subsection (7) in 11
calculating the full-time equivalency of pupils. 12
(9) Upon application by the district for a particular fiscal 13
year, the superintendent shall waive for a district the minimum 14
number of hours and days of pupil instruction requirement of 15
subsection (3) for a department-approved alternative education 16
program or another innovative program approved by the department, 17
including a 4-day school week. If a district applies for and 18
receives a waiver under this subsection and complies with the terms 19
of the waiver, the district is not subject to forfeiture under this 20
section for the specific program covered by the waiver. If the 21
district does not comply with the terms of the waiver, the amount 22
of the forfeiture is calculated based upon a comparison of the 23
number of hours and days of pupil instruction actually provided to 24
the minimum number of hours and days of pupil instruction required 25
under subsection (3). A district shall report pupils enrolled in a 26
department-approved alternative education program under this 27
subsection to the center in a form and manner determined by the 28
center. All of the following apply to a waiver granted under this 29
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subsection: 1
(a) If the waiver is for a blended model of delivery, a waiver 2
that is granted for the 2011-2012 fiscal year or a subsequent 3
fiscal year remains in effect unless it is revoked by the 4
superintendent. 5
(b) If the waiver is for a 100% online model of delivery and 6
the educational program for which the waiver is granted makes 7
educational services available to pupils for a minimum of at least 8
1,098 hours during a school year and ensures that each pupil is on 9
track for course completion at proficiency level, a waiver that is 10
granted for the 2011-2012 fiscal year or a subsequent fiscal year 11
remains in effect unless it is revoked by the superintendent. 12
(c) A waiver that is not a waiver described in subdivision (a) 13
or (b) is valid for 3 fiscal years, unless it is revoked by the 14
superintendent, and must be renewed at the end of the 3-year period 15
to remain in effect. 16
(10) A district may count up to 38 hours of professional 17
development for teachers as hours of pupil instruction. All of the 18
following apply to the counting of professional development as 19
pupil instruction under this subsection: 20
(a) If the professional development exceeds 5 hours in a 21
single day, that day may be counted as a day of pupil instruction. 22
(b) At least 8 hours of the professional development counted 23
as hours of pupil instruction under this subsection must be 24
recommended by a districtwide professional development advisory 25
committee appointed by the district board. The advisory committee 26
must be composed of teachers employed by the district who represent 27
a variety of grades and subject matter specializations, including 28
special education; nonteaching staff; parents; and administrators. 29
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The majority membership of the committee must be composed of 1
teaching staff. 2
(c) Professional development provided online is allowable and 3
encouraged, as long as the instruction has been approved by the 4
district. The department shall issue a list of approved online 5
professional development providers that must include the Michigan 6
Virtual School. 7
(d) Professional development may only be counted as hours of 8
pupil instruction under this subsection for the pupils of those 9
teachers scheduled to participate in the professional development. 10
(e) The professional development must meet all of the 11
following to be counted as pupil instruction under this subsection: 12
(i) Be aligned to the school or district improvement plan for 13
the school or district in which the professional development is 14
being provided. 15
(ii) Be linked to 1 or more criteria in the evaluation tool 16
developed or adopted by the district or intermediate district under 17
section 1249 of the revised school code, MCL 380.1249. 18
(iii) Has been approved by the department as counting for state 19
continuing education clock hours. The number of hours of 20
professional development counted as hours of pupil instruction 21
under this subsection may not exceed the number of state continuing 22
education clock hours for which the professional development was 23
approved. 24
(iv) Not more than a combined total of 10 hours of the 25
professional development takes place before the first scheduled day 26
of school for the school year ending in the fiscal year and after 27
the last scheduled day of school for that school year. 28
(v) Not more than 10 hours of the professional development 29
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takes place in a single month. 1
(vi) At least 75% of teachers scheduled to participate in the 2
professional development are in attendance. 3
(11) Subsections (3) and (8) do not apply to a school of 4
excellence that is a cyber school, as that term is defined in 5
section 551 of the revised school code, MCL 380.551, and is in 6
compliance with section 553a of the revised school code, MCL 7
380.553a. Beginning July 1, 2021, this subsection is subject to 8
section 8c. It is the intent of the legislature that the 9
immediately preceding sentence apply retroactively and is effective 10
July 1, 2021. 11
(12) Subsections (3) and (8) do not apply to eligible pupils 12
enrolled in a dropout recovery program that meets the requirements 13
of section 23a. As used in this subsection, "eligible pupil" means 14
that term as defined in section 23a. 15
(13) At least every 2 years the superintendent shall review 16
the waiver standards set forth in the pupil accounting and auditing 17
manuals to ensure that the waiver standards and waiver process 18
continue to be appropriate and responsive to changing trends in 19
online learning. The superintendent shall solicit and consider 20
input from stakeholders as part of this review. 21
Sec. 104. (1) To receive state aid under this article, a 22
district shall comply with sections 1249, 1278a, 1278b, 1279g, and 23
1280b of the revised school code, MCL 380.1249, 380.1278a, 24
380.1278b, 380.1279g, and 380.1280b, and 1970 PA 38, MCL 388.1081 25
to 388.1086. Subject to subsection (2), from the state school aid 26
fund money appropriated in section 11, there is allocated for 2024-27
2025 $39,509,400.00, and there is allocated for 2025-2026 28
$37,509,400.00, $40,000,000.00, and there is allocated for 2026-29
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2027 $44,500,000.00, for payments on behalf of districts for costs 1
associated with complying with those provisions of law. In 2
addition, from the federal funds appropriated in section 11, there 3
is allocated for 2025-2026 and 2026-2027 an amount estimated at 4
$8,000,000.00 funded from DED-OESE, title VI, state assessment 5
funds, and from DED-OSERS, part B of the individuals with 6
disabilities education act, 20 USC 1411 to 1419, plus any carryover 7
federal funds from previous year appropriations, for the purposes 8
of complying with the every student succeeds act, Public Law 114-9
95. 10
(2) The results of each test administered as part of the 11
Michigan student test of educational progress (M-STEP), including 12
tests administered to high school students, must include an item 13
analysis that lists all items that are counted for individual pupil 14
scores and the percentage of pupils choosing each possible 15
response. The department shall work with the center to identify the 16
number of students enrolled at the time assessments are given by 17
each district. In calculating the percentage of pupils assessed for 18
a district's scorecard, the department shall use only the number of 19
pupils enrolled in the district at the time the district 20
administers the assessments and shall exclude pupils who enroll in 21
the district after the district administers the assessments. 22
(3) The department shall distribute federal funds allocated 23
under this section in accordance with federal law and with 24
flexibility provisions outlined in Public Law 107-116, and in the 25
education flexibility partnership act of 1999, Public Law 106-25. 26
(4) The department may recommend, but may not require, 27
districts to allow pupils to use an external keyboard with tablet 28
devices for online M-STEP testing, including, but not limited to, 29
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open-ended test items such as constructed response or equation 1
builder items. 2
(5) Notwithstanding section 17b, the department shall make 3
payments on behalf of districts, intermediate districts, and other 4
eligible entities under this section on a schedule determined by 5
the department. 6
(6) From the allocation in subsection (1), there is allocated 7
$500,000.00 for 2024-2025 and 2025-2026 and 2026-2027 for the 8
operation of an online reporting tool to provide student-level 9
assessment data in a secure environment to educators, parents, and 10
pupils immediately after assessments are scored. The department and 11
the center shall ensure that any data collected by the online 12
reporting tool do not provide individually identifiable student 13
data to the federal government. 14
(7) As used in this section: 15
(a) "DED" means the United States Department of Education. 16
(b) "DED-OESE" means the DED Office of Elementary and 17
Secondary Education. 18
(c) "DED-OSERS" means the DED Office of Special Education and 19
Rehabilitative Services. 20
Sec. 104h. (1) From the state school aid fund money 21
appropriated under section 11, there is allocated for 2025-2026 22
2026-2027 an amount not to exceed $11,500,000.00 to districts to 23
implement benchmark assessments during the 2025-2026 2026-2027 24
school year. All of the following apply to the benchmark assessment 25
system described in this subsection: 26
(a) The system must provide for all of the following: 27
(i) That, within the first 9 weeks of the 2025-2026 school 28
year, the district shall administer 1 or more benchmark assessments 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
provided by a provider approved under subsection (6), (5), 1
benchmark assessments described in subdivision (b), or local 2
benchmark assessments, or any combination thereof, to all pupils in 3
grades K to 8 to measure proficiency in reading and mathematics. 4
(ii) That, in addition to the benchmark assessment or benchmark 5
assessments administered under subparagraph (i), by not later than 6
the last day of the 2025-2026 school year, the district shall 7
administer the benchmark assessment or assessments administered 8
under subparagraph (i) to all pupils in grades K to 8 to measure 9
proficiency in reading and mathematics. To support fall to spring 10
growth calculations, the same benchmark assessment that is 11
administered in the fall must be administered in the spring.last 12
marking period of the school year. 13
(b) Except as otherwise provided in this section, a district 14
may administer 1 or more of the following benchmark assessments 15
toward meeting the requirements under subdivision (a): 16
(i) A benchmark assessment in reading for students in grades K 17
to 9 that contains progress monitoring tools and enhanced 18
diagnostic assessments. 19
(ii) A benchmark assessment in math for students in grades K to 20
8 that contains progress monitoring tools. 21
(c) The system must provide that, to the extent practicable, 22
if a district administers a benchmark assessment or benchmark 23
assessments under this section, the district shall administer the 24
same benchmark assessment or benchmark assessments provided by a 25
provider approved under subsection (6), (5), benchmark assessment 26
or benchmark assessments described in subdivision (b), or local 27
benchmark assessment or local benchmark assessments that it 28
administered to pupils in previous school years, as applicable. 29
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(d) The system must provide that, if a district administers a 1
benchmark assessment or benchmark assessments under this section, 2
the district shall provide each pupil's data from the benchmark 3
assessment or benchmark assessments, as available, to the pupil's 4
parent or legal guardian within 30 days of administering the 5
benchmark assessment or benchmark assessments. 6
(e) The system must provide that, if a local benchmark 7
assessment or local benchmark assessments are administered under 8
subdivision (a), the district shall report to the department, in a 9
form and manner prescribed by the department, the local benchmark 10
assessment or local benchmark assessments that were administered 11
and how that assessment or those assessments measure changes, 12
including any losses, as applicable, in learning, and the 13
district's plan for addressing any losses in learning. 14
(f) The system must provide that, by not later than 30 days 15
after a benchmark assessment or benchmark assessments are 16
administered under subdivision (a)(ii), or within a time frame 17
specified by the department, the district shall send benchmark 18
assessment data, including grade level, student demographics, and 19
mode of instruction, to the department in a form and manner 20
prescribed by the department, from all benchmark assessments 21
administered in the 2025-2026 school year, excluding data from a 22
local benchmark assessment, as applicable. If available, the data 23
described in this subdivision must include information concerning 24
pupil growth from fall 2025 to spring 2026. 25
(2) To receive funding under this section, a district must do 26
all of the following: 27
(a) Apply for the funding in a form and manner prescribed by 28
the department. 29
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(b) Administer 1 or more of the benchmark assessments 1
described in subsection (6), (5), excluding the benchmark 2
assessment described in subsection (4). 3
(c) Administer the same benchmark assessment or assessments in 4
both the fall and spring, as required under this section. 5
(d) Meet all reporting requirements pertaining to assessment 6
and mode-of-instruction data outlined to parents and legal 7
guardians as described in this section. 8
(3) Subject to subsection (2), the department shall pay an 9
equal amount per membership pupil in grades K to 8 in the district 10
to each district that applies for funding under this section. 11
(4) The department shall make 1 of the benchmark assessments 12
provided by a provider approved under subsection (6) (5) available 13
to districts at no cost to the districts for purposes of meeting 14
the requirements under this section. The benchmark assessment 15
described in this subsection must meet all of the following: 16
(a) Be aligned to the content standards of this state. 17
(b) Complement the this state's summative assessment system. 18
(c) Be internet-delivered and include a standards-based 19
assessment. 20
(d) Provide information on pupil achievement with regard to 21
learning content required in a given year or grade span. 22
(e) Provide timely feedback to pupils and teachers. 23
(f) Be nationally normed. 24
(g) Provide information to educators about student growth and 25
allow for multiple testing opportunities. 26
(5) By not later than November 15 of each year subsequent to a 27
year in which funding is appropriated under this section, the 28
department shall submit a report to the house and senate 29
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appropriations committees, the house and senate appropriations 1
subcommittees on school aid, and the house and senate fiscal 2
agencies regarding the benchmark assessment data received under 3
this section, disaggregated by grade level and demographic subgroup 4
for each district. If information concerning pupil growth is 5
included in the data described in this subsection, it must be 6
incorporated in the report described in this subsection. 7
(h) Include a digital library of teaching resources that are 8
tied directly to the benchmark assessment and aligned to this 9
state's standards. 10
(5) (6) The department shall approve at least 4 but not more 11
than 6 providers of benchmark assessments for the purposes of this 12
section. The department shall inform districts of all of the 13
providers approved under this subsection in an equitable manner. 14
The benchmark assessments, with the exclusion of the benchmark 15
assessment described in subsection (4), provided by approved 16
providers under this subsection must meet all of the following: 17
(a) Be aligned to the content standards of this state. 18
(b) Complement the state's summative assessment system. 19
(c) Be internet-delivered and include a standards-based 20
remote, in-person, or both remote and in-person assessment using a 21
computer-adaptive model to target the instructional level of each 22
pupil. 23
(d) Provide information on pupil achievement with regard to 24
learning content required in a given year or grade span. 25
(e) Provide immediate feedback to pupils and teachers. 26
(f) Be nationally normed. 27
(g) Provide multiple measures of growth and provide for 28
multiple testing opportunities. 29
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Sec. 107. (1) From the state school aid fund appropriation in 1
section 11, there is allocated an amount not to exceed 2
$32,913,600.00 $42,525,000.00 for 2025-2026 2026-2027 for adult 3
education programs authorized under this section. Except as 4
otherwise provided under subsections (14) and (15), funds allocated 5
under this section are restricted for adult education programs as 6
authorized under this section only. A recipient of funds under this 7
section shall not use those funds for any other purpose. 8
(2) To be eligible for funding under this section, an eligible 9
adult education provider shall employ certificated teachers and 10
qualified administrative staff and shall offer continuing education 11
opportunities for teachers to allow them to maintain certification. 12
(3) To be eligible to be a participant funded under this 13
section, an individual must be enrolled in an adult basic education 14
program, an adult secondary education program, an adult English as 15
a second language program, a high school equivalency test 16
preparation program, or a high school completion program, that 17
meets the requirements of this section, and for which instruction 18
is provided, and the individual must be at least 18 years of age by 19
July 1 of the program year and the individual's graduating class 20
must have graduated. 21
(4) By April 1 of each fiscal year for which funding is 22
allocated under this section, the intermediate districts within a 23
prosperity region or subregion shall determine which intermediate 24
district will serve as the prosperity region's or subregion's 25
fiscal agent for the next fiscal year and shall notify the 26
department in a form and manner determined by the department. The 27
department shall approve or disapprove of the prosperity region's 28
or subregion's selected fiscal agent. From the funds allocated 29
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under subsection (1), an amount as determined under this subsection 1
is allocated to each intermediate district serving as a fiscal 2
agent for adult education programs in each of the prosperity 3
regions or subregions identified by the department. An intermediate 4
district shall not use more than 5% of the funds allocated under 5
this subsection for administration costs for serving as the fiscal 6
agent. The allocation provided to each intermediate district 7
serving as a fiscal agent must be calculated as follows: 8
(a) Sixty percent of this portion of the funding must be 9
distributed based upon the proportion of the state population of 10
individuals between the ages of 18 and 24 that are not high school 11
graduates that resides in each of the prosperity regions or 12
subregions located within the intermediate district, as reported by 13
the most recent 5-year estimates from the American Community Survey 14
(ACS) from the United States Census Bureau. 15
(b) Thirty-five percent of this portion of the funding must be 16
distributed based upon the proportion of the state population of 17
individuals age 25 or older who are not high school graduates that 18
resides in each of the prosperity regions or subregions located 19
within the intermediate district, as reported by the most recent 5-20
year estimates from the ACS from the United States Census Bureau. 21
(c) Five percent of this portion of the funding must be 22
distributed based upon the proportion of the state population of 23
individuals age 18 or older who lack basic English language 24
proficiency that resides in each of the prosperity regions or 25
subregions located within the intermediate district, as reported by 26
the most recent 5-year estimates from the ACS from the United 27
States Census Bureau. 28
(5) To be an eligible fiscal agent, an intermediate district 29
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must agree to do the following in a form and manner determined by 1
the department: 2
(a) Distribute funds to adult education programs in a 3
prosperity region or subregion as described in this section. 4
(b) Collaborate with the career and educational advisory 5
council, which is an advisory council of the workforce development 6
boards located in the prosperity region or subregion, or its 7
successor, to develop a regional strategy that aligns adult 8
education programs and services into an efficient and effective 9
delivery system for adult education learners, with special 10
consideration for providing contextualized learning and career 11
pathways and addressing barriers to education and employment. 12
(c) Collaborate with the career and educational advisory 13
council, which is an advisory council of the workforce development 14
boards located in the prosperity region or subregion, or its 15
successor, to create a local process and criteria that will 16
identify eligible adult education providers to receive funds 17
allocated under this section based on location, demand for 18
services, past performance, quality indicators as identified by the 19
department, and cost to provide instructional services. The fiscal 20
agent shall determine all local processes, criteria, and provider 21
determinations. However, the local processes, criteria, and 22
provider services must be approved by the department before funds 23
may be distributed to the fiscal agent. 24
(d) Provide oversight to its adult education providers 25
throughout the program year to ensure compliance with the 26
requirements of this section. 27
(e) Report adult education program and participant data and 28
information as prescribed by the department. 29
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(6) An adult basic education program, an adult secondary 1
education program, or an adult English as a second language program 2
operated on a year-round or school year basis may be funded under 3
this section, subject to all of the following: 4
(a) The program enrolls adults who are determined by a 5
department-approved assessment, in a form and manner prescribed by 6
the department, to be below twelfth grade level in reading or 7
mathematics, or both, or to lack basic English proficiency. 8
(b) The program tests individuals for eligibility under 9
subdivision (a) before enrollment and upon completion of the 10
program in compliance with the state-approved assessment policy. 11
(c) A participant in an adult basic education program is 12
eligible for reimbursement until 1 of the following occurs: 13
(i) The participant's reading and mathematics proficiency are 14
assessed at or above the ninth grade level. 15
(ii) The participant fails to show progress on 2 successive 16
assessments after having completed at least 450 hours of 17
instruction. 18
(d) A participant in an adult secondary education program is 19
eligible for reimbursement until 1 of the following occurs: 20
(i) The participant's reading and mathematics proficiency are 21
assessed above the twelfth grade level. 22
(ii) The participant fails to show progress on 2 successive 23
assessments after having at least 450 hours of instruction. 24
(e) A funding recipient enrolling a participant in an English 25
as a second language program is eligible for funding according to 26
subsection (9) until the participant meets 1 of the following: 27
(i) The participant is assessed as having attained basic 28
English proficiency as determined by a department-approved 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
assessment. 1
(ii) The participant fails to show progress on 2 successive 2
department-approved assessments after having completed at least 450 3
hours of instruction. The department shall provide information to a 4
funding recipient regarding appropriate assessment instruments for 5
this program. 6
(7) A high school equivalency test preparation program 7
operated on a year-round or school year basis may be funded under 8
this section, subject to all of the following: 9
(a) The program enrolls adults who do not have a high school 10
diploma or a high school equivalency certificate. 11
(b) The program administers a pre-test approved by the 12
department before enrolling an individual to determine the 13
individual's literacy levels, administers a high school equivalency 14
practice test to determine the individual's potential for success 15
on the high school equivalency test, and administers a post-test 16
upon completion of the program in compliance with the state-17
approved assessment policy. 18
(c) A funding recipient receives funding according to 19
subsection (9) for a participant, and a participant may be enrolled 20
in the program until 1 of the following occurs: 21
(i) The participant achieves a high school equivalency 22
certificate. 23
(ii) The participant fails to show progress on 2 successive 24
department-approved assessments used to determine readiness to take 25
a high school equivalency test after having completed at least 450 26
hours of instruction. 27
(8) A high school completion program operated on a year-round 28
or school year basis may be funded under this section, subject to 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
all of the following: 1
(a) The program enrolls adults who do not have a high school 2
diploma. 3
(b) The program tests participants described in subdivision 4
(a) before enrollment and upon completion of the program in 5
compliance with the state-approved assessment policy. 6
(c) A funding recipient receives funding according to 7
subsection (9) for a participant in a course offered under this 8
subsection until 1 of the following occurs: 9
(i) The participant passes the course and earns a high school 10
diploma. 11
(ii) The participant fails to earn credit in 2 successive 12
semesters or terms in which the participant is enrolled after 13
having completed at least 900 hours of instruction. 14
(9) The department shall make payments to a funding recipient 15
under this section in accordance with all of the following: 16
(a) Statewide allocation criteria, including 3-year average 17
enrollments, census data, and local needs. 18
(b) Participant completion of the adult basic education 19
objectives by achieving an educational gain as determined by the 20
national reporting system levels; for achieving basic English 21
proficiency, as determined by the department; for achieving a high 22
school equivalency certificate or passage of 1 or more individual 23
high school equivalency tests; for attainment of a high school 24
diploma or passage of a course required for a participant to attain 25
a high school diploma; for enrollment in a postsecondary 26
institution; or for entry into or retention of employment, as 27
applicable. 28
(c) Participant completion of core indicators as identified in 29
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the workforce innovation and opportunity act, Public Law 113-128. 1
(d) Allowable expenditures. 2
(10) An individual who is not eligible to be a participant 3
funded under this section may receive adult education services upon 4
the payment of tuition. In addition, an individual who is not 5
eligible to be served in a program under this section due to the 6
program limitations specified in subsection (6), (7), or (8) may 7
continue to receive adult education services in that program upon 8
the payment of tuition. The local or intermediate district 9
conducting the program shall determine the tuition amount. 10
(11) An individual who is an inmate in a state correctional 11
facility is not counted as a participant under this section. 12
(12) A funding recipient shall not commingle money received 13
under this section or from another source for adult education 14
purposes with any other funds and shall establish a separate ledger 15
account for funds received under this section. This subsection does 16
not prohibit a district from using general funds of the district to 17
support an adult education or community education program. 18
(13) A funding recipient receiving funds under this section 19
may establish a sliding scale of tuition rates based upon a 20
participant's family income. A funding recipient may charge a 21
participant tuition to receive adult education services under this 22
section from that sliding scale of tuition rates on a uniform 23
basis. The amount of tuition charged per participant must not 24
exceed the actual operating cost per participant minus any funds 25
received under this section per participant. A funding recipient 26
may not charge a participant tuition under this section if the 27
participant's income is at or below 200% of the federal poverty 28
guidelines published by the United States Department of Health and 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
Human Services. 1
(14) To receive funds under this section, a funding recipient 2
shall furnish to the department, in a form and manner determined by 3
the department, all information needed to administer this program 4
and meet federal reporting requirements; shall allow the department 5
or the department's designee to review all records related to the 6
program for which it receives funds; and shall reimburse the state 7
for all disallowances found in the review, as determined by the 8
department. In addition, a funding recipient shall agree to pay to 9
a career and technical education program under section 61a the 10
amount of funding received under this section in the proportion of 11
career and technical education coursework used to satisfy adult 12
basic education programming, as billed to the funding recipient by 13
programs operating under section 61a. 14
(15) From the amount appropriated in subsection (1), an amount 15
not to exceed $4,000,000.00 is allocated for 2025-2026 2026-2027 to 16
approved adult education programs that connect adult education 17
participants with employers as provided under this subsection. The 18
department shall determine regional planning allocations under this 19
subsection to each intermediate district serving as a fiscal agent 20
for adult education programs in each of the prosperity regions or 21
subregions identified by the department in the same proportion as 22
funding calculated and allocated under subsection (4). Funds not 23
fully utilized within a region may be transferred to other regions 24
as appropriate. To be eligible for funding under this subsection, a 25
program must provide a collaboration linking adult education 26
programs within the county, state-approved career and technical 27
education programs, and local employers. To receive funding under 28
this subsection, an eligible program must satisfy all of the 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
following: 1
(a) Connect adult education participants directly with 2
employers by linking adult education, career and technical skills, 3
and workforce development. 4
(b) Require adult education staff to work with Michigan Works! 5
agency to identify a cohort of participants who are most prepared 6
to successfully enter the workforce. Except as otherwise provided 7
under this subdivision, participants identified under this 8
subsection must be dually enrolled in adult education programming 9
and in at least 1 state-approved technical course through a career 10
and technical education program. A program that links participants 11
identified under this subsection with adult education programming 12
and commercial driver license courses does not need to enroll the 13
participants in at least 1 state-approved technical course through 14
a career and technical education program to be considered an 15
eligible program under this subsection. 16
(c) Employ an individual staffed as an adult education 17
navigator who will serve as a caseworker for each participant 18
identified under subdivision (b). The navigator shall work with 19
adult education staff and potential employers to design an 20
educational program best suited to the personal and employment 21
needs of the participant and shall work with human service agencies 22
or other entities to address any barrier in the way of participant 23
access. 24
(16) By not later than December 1 of each year, a program 25
funded under subsection (15) shall provide a report to the senate 26
and house appropriations subcommittees on school aid, to the senate 27
and house fiscal agencies, and to the state budget director 28
identifying the number of participants, graduation rates, and a 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
measure of transition to employment. 1
(17) Except as otherwise provided in this subsection, 2
participants under subsection (15) must be concurrently enrolled 3
and actively working toward obtaining a high school diploma or a 4
high school equivalency certificate. Concurrent enrollment is not 5
required under this subsection for a participant that was enrolled 6
in adult education during the same program year and obtained a high 7
school diploma or a high school equivalency certificate before 8
enrollment in an eligible career and technical skills program under 9
subsection (15). Up to 10% of adult education participants served 10
under subsection (15) may already have a high school diploma or a 11
high school equivalency certificate at the time of enrollment in an 12
eligible career and technical skills program under subsection (15) 13
and receive remediation services. It is intended that the cap 14
described in the immediately preceding sentence is continually 15
lowered on an annual basis until it eventually is 0%. 16
(18) The department shall approve at least 2 high school 17
equivalency tests and determine whether a high school equivalency 18
certificate meets the requisite standards for high school 19
equivalency in this state. 20
(19) As used in this section: 21
(a) "Career and educational advisory council" means an 22
advisory council to the local workforce development boards located 23
in a prosperity region consisting of educational, employer, labor, 24
and parent representatives. 25
(b) "Career pathway" means a combination of rigorous and high-26
quality education, training, and other services that comply with 27
all of the following: 28
(i) Aligns with the skill needs of industries in the economy of 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
this state or in the regional economy involved. 1
(ii) Prepares an individual to be successful in any of a full 2
range of secondary or postsecondary education options, including 3
apprenticeships registered under the act of August 16, 1937, 4
commonly referred to as the national apprenticeship act, 29 USC 50 5
et seq. 6
(iii) Includes counseling to support an individual in achieving 7
the individual's education and career goals. 8
(iv) Includes, as appropriate, education offered concurrently 9
with and in the same context as workforce preparation activities 10
and training for a specific occupation or occupational cluster. 11
(v) Organizes education, training, and other services to meet 12
the particular needs of an individual in a manner that accelerates 13
the educational and career advancement of the individual to the 14
extent practicable. 15
(vi) Enables an individual to attain a secondary school diploma 16
or its recognized equivalent, and at least 1 recognized 17
postsecondary credential. 18
(vii) Helps an individual enter or advance within a specific 19
occupation or occupational cluster. 20
(c) "Department" means the department of labor and economic 21
opportunity. 22
(d) "Eligible adult education provider" means a district, 23
intermediate district, a consortium of districts, a consortium of 24
intermediate districts, or a consortium of districts and 25
intermediate districts that is identified as part of the local 26
process described in subsection (5)(c) and approved by the 27
department. 28
Sec. 147. (1) The allocation for 2025-2026 2026-2027 for the 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
public school employees' retirement system pursuant to the public 1
school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 2
to 38.1437, is made using the individual projected benefit entry 3
age normal cost method of valuation and risk assumptions adopted by 4
the public school employees retirement board and the department of 5
technology, management, and budget. 6
(2) The annual level percentage of payroll contribution rates 7
for the 2025-2026 2026-2027 fiscal year, as determined by the 8
retirement system, are estimated as follows: 9
(a) For public school employees who first worked for a public 10
school reporting unit before July 1, 2010 and who are enrolled in 11
the health premium subsidy, the annual level percentage of payroll 12
contribution rate is estimated at 44.93% 41.02% with 29.91% 27.51% 13
paid directly by the employer. 14
(b) For public school employees who first worked for a public 15
school reporting unit on or after July 1, 2010 and who are enrolled 16
in the health premium subsidy, the annual level percentage of 17
payroll contribution rate is estimated at 40.19% 36.28% with 25.17% 18
22.77% paid directly by the employer. 19
(c) For public school employees who first worked for a public 20
school reporting unit on or after July 1, 2010 and who participate 21
in the personal healthcare fund, the annual level percentage of 22
payroll contribution rate is estimated at 36.36% 34.85% with 21.34% 23
paid directly by the employer. 24
(d) For public school employees who first worked for a public 25
school reporting unit on or after September 4, 2012, who elect 26
defined contribution, and who participate in the personal 27
healthcare fund, the annual level percentage of payroll 28
contribution rate is estimated at 30.23% 28.72% with 15.21% paid 29
402
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
directly by the employer. 1
(e) For public school employees who first worked for a public 2
school reporting unit before July 1, 2010, who elect defined 3
contribution, and who are enrolled in the health premium subsidy, 4
the annual level percentage of payroll contribution rate is 5
estimated at 34.06% 30.15% with 19.04% 16.64% paid directly by the 6
employer. 7
(f) For public school employees who first worked for a public 8
school reporting unit before July 1, 2010, who elect defined 9
contribution, and who participate in the personal healthcare fund, 10
the annual level percentage of payroll contribution rate is 11
estimated at 30.23% 28.72% with 15.21% paid directly by the 12
employer. 13
(g) For public school employees who first worked for a public 14
school reporting unit before July 1, 2010 and who participate in 15
the personal healthcare fund, the annual level percentage of 16
payroll contribution rate is estimated at 41.10% 39.59% with 26.08% 17
paid directly by the employer. 18
(h) For public school employees who first worked for a public 19
school reporting unit after January 31, 2018 and who elect to 20
become members of the MPSERS plan, the annual level percentage of 21
payroll contribution rate is estimated at 36.43% 34.92% with 21.41% 22
paid directly by the employer. 23
(3) In addition to the employer payments described in 24
subsection (2), the employer shall pay the applicable contributions 25
to the Tier 2 plan, as determined by the public school employees 26
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437. 27
(4) The contribution rates in subsection (2) reflect an 28
amortization period of 13 12 years for 2024-2025. 2026-2027. The 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
public school employees' retirement system board shall notify each 1
district and intermediate district by February 28 of each fiscal 2
year of the estimated contribution rate for the next fiscal year. 3
Sec. 147a. (1) From the state school aid fund money 4
appropriated in section 11, there is allocated for 2024-2025 an 5
amount not to exceed $100,000,000.00 for payments to participating 6
districts. A participating district that receives money under this 7
subsection shall use that money solely for the purpose of 8
offsetting a portion of the retirement contributions owed by the 9
district for the fiscal year in which it is received. The amount 10
allocated to each participating district under this subsection is 11
based on each participating district's percentage of the total 12
statewide payroll for all participating districts for the 13
immediately preceding fiscal year. As used in this subsection, 14
"participating district" means a district that is a reporting unit 15
of the Michigan public school employees' retirement system under 16
the public school employees retirement act of 1979, 1980 PA 300, 17
MCL 38.1301 to 38.1437, and that reports employees to the Michigan 18
public school employees' retirement system for the applicable 19
fiscal year. 20
(2) In addition to the allocation under subsection (1), from 21
From the state school aid fund money appropriated under section 11, 22
there is allocated an amount not to exceed $414,900,000.00 for 23
2024-2025 and an amount not to exceed $336,200,000.00 24
$361,100,000.00 for 2025-2026 and an amount not to exceed 25
$307,400,000.00 for 2026-2027 for payments to participating 26
districts and intermediate districts and from the general fund 27
money appropriated under section 11, there is allocated an amount 28
not to exceed $100,000.00 for 2024-2025 and 2025-2026 and 2026-2027 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
for payments to participating district libraries. The amount 1
allocated to each participating entity under this subsection is 2
based on each participating entity's reported quarterly payroll for 3
members that became tier 1 before February 1, 2018 for the current 4
fiscal year. A participating entity that receives money under this 5
subsection shall use that money solely for the purpose of 6
offsetting a portion of the normal cost contribution rate. As used 7
in this subsection:section: 8
(a) "District library" means a district library established 9
under the district library establishment act, 1989 PA 24, MCL 10
397.171 to 397.196. 11
(b) "Participating entity" means a district, intermediate 12
district, or district library that is a reporting unit of the 13
Michigan public school employees' retirement system under the 14
public school employees retirement act of 1979, 1980 PA 300, MCL 15
38.1301 to 38.1437, and that reports employees to the Michigan 16
public school employees' retirement system for the applicable 17
fiscal year. 18
(3) In addition to the allocations under subsections (1) and 19
(2), from the state school aid fund money appropriated in section 20
11, there is allocated for 2024-2025 only an amount not to exceed 21
$11,939,000.00 for payments to participating intermediate districts 22
and participating district libraries. A participating intermediate 23
district or participating district library shall use that money 24
solely for the purpose of offsetting a portion of the retirement 25
contributions owed by the participating intermediate district or 26
participating district library for the fiscal year in which it is 27
received. The amount allocated to each participating intermediate 28
district or participating district library under this subsection is 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
calculated as follows: 1
(a) For each participating intermediate district, 2
$11,912,000.00 multiplied by each participating intermediate 3
district's percentage of the total statewide payroll for all 4
participating intermediate districts for the immediately preceding 5
fiscal year. 6
(b) For each participating district library, $27,000.00 7
multiplied by each participating district library's percentage of 8
the total statewide payroll for all participating district 9
libraries for the immediately preceding fiscal year. 10
(c) As used in this subsection: 11
(i) "Participating district library" means a district library 12
that is a reporting unit of the Michigan public school employees' 13
retirement system under the public school employees retirement act 14
of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports 15
employees to the Michigan public school employees' retirement 16
system for the applicable fiscal year. 17
(ii) "Participating intermediate district" means an 18
intermediate district that is a reporting unit of the Michigan 19
public school employees' retirement system under the public school 20
employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 21
38.1437, and that reports employees to the Michigan public school 22
employees' retirement system for the applicable fiscal year. 23
(4) In addition to the allocations under subsections (1), (2), 24
and (3), from the state school aid fund money appropriated in 25
section 11, there is allocated for 2024-2025 an amount not to 26
exceed $598,000,000.00 for payments to participating entities. The 27
amount allocated to each participating entity under this subsection 28
is based on each participating entity's percentage of the total 29
406
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
statewide payroll for all participating entities for the 1
immediately preceding fiscal year. The amount allocated in this 2
subsection represents an amount to effectively reduce each 3
participating entity's unfunded actuarial accrued liability from 4
20.96% to an estimated 15.21% of covered payroll. It is the intent 5
of the legislature that the allocation under this subsection be 6
used to support student mental health, school safety, the educator 7
workforce, and academic interventions. 8
(a) As used in this subsection: 9
(i) "District library" means a district library established 10
under the district library establishment act, 1989 PA 24, MCL 11
397.171 to 397.196. 12
(ii) "Participating entity" means a district, intermediate 13
district, district library, or community college that is a 14
reporting unit of the Michigan public school employees' retirement 15
system under the public school employees retirement act of 1979, 16
1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to 17
the Michigan public school employees' retirement system for the 18
applicable fiscal year. 19
Sec. 147b. (1) The MPSERS retirement obligation reform reserve 20
fund is created as a separate account within the state school aid 21
fund. 22
(2) The state treasurer may receive money or other assets from 23
any source for deposit into the MPSERS retirement obligation reform 24
reserve fund. The state treasurer shall direct the investment of 25
the MPSERS retirement obligation reform reserve fund. The state 26
treasurer shall credit to the MPSERS retirement obligation reform 27
reserve fund interest and earnings from the MPSERS retirement 28
obligation reform reserve fund. 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(3) Money available in the MPSERS retirement obligation reform 1
reserve fund must not be expended without a specific appropriation. 2
(4) Money in the MPSERS retirement obligation reform reserve 3
fund at the close of the fiscal year remains in the MPSERS 4
retirement obligation reform reserve fund and does not lapse lapses 5
to the state school aid fund or to the general fund. The department 6
of treasury is the administrator of the MPSERS retirement 7
obligation reform reserve fund for auditing purposes. 8
(5) For 2022-2023, $825,000,000.00 from the state school aid 9
fund is deposited into the MPSERS retirement obligation reform 10
reserve fund. It is the intent of the legislature that 11
$425,000,000.00 of the funds deposited under this subsection for 12
2022-2023 are used to offset costs associated with accelerating the 13
reduction of the payroll growth assumption for reporting units that 14
are not university reporting units until that rate is zero by 15
October 1, 2026. 16
Sec. 147c. (1) From the state school aid fund money 17
appropriated in section 11, there is allocated for 2025-2026 an 18
amount not to exceed $1,536,500,000.00 and there is allocated for 19
2026-2027 an amount not to exceed $1,454,400,000.00 for payments to 20
districts and intermediate districts that are participating 21
entities of the Michigan public school employees' retirement 22
system. In addition, from the general fund money appropriated in 23
section 11, there is allocated for 2025-2026 and 2026-2027 an 24
amount not to exceed $300,000.00 for payments to district libraries 25
that are participating entities of the Michigan public school 26
employees' retirement system. All of the following apply to funding 27
under this subsection: 28
(a) Except as otherwise provided in this subdivision, for 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
2025-2026, the The amounts allocated under this subsection are 1
estimated to provide an average MPSERS rate cap per pupil amount 2
for districts of $1,100.00. , which represents an average increase 3
of $362.00 per pupil compared to the immediately preceding state 4
fiscal year. 5
(b) Payments made under this subsection are equal to the 6
difference between the unfunded actuarial accrued liability 7
contribution rate as calculated under section 41 of the public 8
school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, 9
as calculated without taking into account the maximum employer rate 10
of 20.96% 15.21% included in section 41 of the public school 11
employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the 12
maximum employer rate of 20.96% 15.21% included in section 41 of 13
the public school employees retirement act of 1979, 1980 PA 300, 14
MCL 38.1341. 15
(c) The amount allocated to each participating entity under 16
this subsection is based on each participating entity's proportion 17
of the total covered payroll for the immediately preceding fiscal 18
year for the same type of participating entities. A participating 19
entity that receives funds under this subsection shall use the 20
funds solely for the purpose of retirement contributions as 21
specified in subdivision (d). 22
(d) Each participating entity receiving funds under this 23
subsection shall forward an amount equal to the amount allocated 24
under subdivision (c) to the retirement system in a form, manner, 25
and time frame determined by the retirement system. 26
(e) Funds allocated under this subsection should be considered 27
when comparing a district's growth in total state aid funding from 28
1 fiscal year to the next. 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(f) By not later than December 20 of each fiscal year for 1
which funding is allocated under this subsection, the department 2
shall publish and post on its website an estimated MPSERS rate cap 3
per pupil for each district. 4
(2) As used in this section: 5
(a) "District library" means a district library established 6
under the district library establishment act, 1989 PA 24, MCL 7
397.171 to 397.196. 8
(b) "MPSERS rate cap per pupil" means an amount equal to the 9
quotient of the district's payment under this section divided by 10
the district's pupils in membership. 11
(c) "Participating entity" means, except as otherwise provided 12
in this subdivision, a district, intermediate district, or district 13
library that is a reporting unit of the Michigan public school 14
employees' retirement system under the public school employees 15
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and 16
that reports employees to the Michigan public school employees' 17
retirement system for the applicable fiscal year. 18
(d) "Retirement system" means the Michigan public school 19
employees' retirement system under the public school employees 20
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437. 21
Sec. 147e. (1) From the state school aid fund money 22
appropriated in section 11, there is allocated for 2024-2025 an 23
amount not to exceed $71,600,000.00, and there is allocated for 24
2025-2026 an amount not to exceed $118,400,000.00 $116,500,000.00 25
and there is allocated for 2026-2027 an amount not to exceed 26
$136,200,000.00 for payments to participating entities. 27
(2) The payment to each participating entity under this 28
section is the sum of the amounts under this subsection as follows: 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(a) An amount equal to the contributions made by a 1
participating entity for the additional contribution made to a 2
qualified participant's Tier 2 account in an amount equal to the 3
contribution made by the qualified participant not to exceed 3% of 4
the qualified participant's compensation as provided for under 5
section 131(6) of the public school employees retirement act of 6
1979, 1980 PA 300, MCL 38.1431. 7
(b) Beginning October 1, 2017, an amount equal to the 8
contributions made by a participating entity for a qualified 9
participant who is only a Tier 2 qualified participant under 10
section 81d of the public school employees retirement act of 1979, 11
1980 PA 300, MCL 38.1381d, not to exceed 4%, and, beginning 12
February 1, 2018, not to exceed 1%, of the qualified participant's 13
compensation. 14
(c) An amount equal to the increase in employer normal cost 15
contributions under section 41b(2) of the public school employees 16
retirement act of 1979, 1980 PA 300, MCL 38.1341b, for a member 17
that was hired after February 1, 2018 and chose to participate in 18
Tier 1, compared to the employer normal cost contribution for a 19
member under section 41b(1) of the public school employees 20
retirement act of 1979, 1980 PA 300, MCL 38.1341b. 21
(3) As used in this section: 22
(a) "Member" means that term as defined under the public 23
school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 24
to 38.1437. 25
(b) "Participating entity" means a district, intermediate 26
district, or community college that is a reporting unit of the 27
Michigan public school employees' retirement system under the 28
public school employees retirement act of 1979, 1980 PA 300, MCL 29
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38.1301 to 38.1437, and that reports employees to the Michigan 1
public school employees' retirement system for the applicable 2
fiscal year. 3
(c) "Qualified participant" means that term as defined under 4
section 124 of the public school employees retirement act of 1979, 5
1980 PA 300, MCL 38.1424. 6
Sec. 152a. (1) As required by the court in the consolidated 7
cases known as Adair v State of Michigan, 486 Mich 468 (2010), from 8
the state school aid fund money appropriated in section 11, there 9
is allocated for 2025-2026 2026-2027 an amount not to exceed 10
$41,000,500.00 to be used solely for the purpose of paying 11
necessary costs related to the state-mandated collection, 12
maintenance, and reporting of data to this state. From this 13
allocation, $3,000,000.00 is allocated for costs associated with 14
collecting data necessary to provide reporting to tribal 15
governments on the status of students affiliated with their 16
particular tribe and data necessary to determine student 17
participation in federal programs funded under 20 USC 7401 to 7546 18
and participation in federal programs funded under the Johnson-19
O'Malley Supplemental supplemental Indian Education Program 20
Modernization Act, education program modernization act, Public Law 21
115-404. 22
(2) From the allocation in subsection (1), the department 23
shall make payments to districts and intermediate districts in an 24
equal amount per pupil based on the total number of pupils in 25
membership in each district and intermediate district. The 26
department shall not make any adjustment to these payments after 27
the final installment payment under section 17b is made. 28
Sec. 152b. (1) From the general fund money appropriated under 29
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section 11, there is allocated an amount not to exceed 1
$1,000,000.00 for 2025-2026 2026-2027 to reimburse actual costs 2
incurred by nonpublic schools in complying with a health, safety, 3
or welfare requirement mandated by a law or administrative rule of 4
this state. 5
(2) By January 1 of each applicable fiscal year, the 6
department shall publish a form for reporting actual costs incurred 7
by a nonpublic school in complying with a health, safety, or 8
welfare requirement mandated under state law containing each 9
health, safety, or welfare requirement mandated by a law or 10
administrative rule of this state applicable to a nonpublic school 11
and with a reference to each relevant provision of law or 12
administrative rule for the requirement. The form must be posted on 13
the department's website in electronic form. 14
(3) By June 30 of each applicable fiscal year, a nonpublic 15
school seeking reimbursement for actual costs incurred in complying 16
with a health, safety, or welfare requirement under a law or 17
administrative rule of this state during each applicable school 18
year must submit a completed form described in subsection (2) to 19
the department. This section does not require a nonpublic school to 20
submit a form described in subsection (2). A nonpublic school is 21
not eligible for reimbursement under this section if the nonpublic 22
school does not submit the form described in subsection (2) in a 23
timely manner. 24
(4) By August 15 of each applicable fiscal year, the 25
department shall distribute funds to each nonpublic school that 26
submits a completed form described under subsection (2) in a timely 27
manner. The superintendent shall determine the amount of funds to 28
be paid to each nonpublic school in an amount that does not exceed 29
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the nonpublic school's actual costs in complying with a health, 1
safety, or welfare requirement under a law or administrative rule 2
of this state. The superintendent shall calculate a nonpublic 3
school's actual cost in accordance with this section. 4
(5) If the funds allocated under this section are insufficient 5
to fully fund payments as otherwise calculated under this section, 6
the department shall distribute funds under this section on a 7
prorated or other equitable basis as determined by the 8
superintendent. 9
(6) The department may review the records of a nonpublic 10
school submitting a form described in subsection (2) only for the 11
limited purpose of verifying the nonpublic school's compliance with 12
this section. If a nonpublic school does not allow the department 13
to review records under this subsection, the nonpublic school is 14
not eligible for reimbursement under this section. 15
(7) The funds appropriated under this section are for purposes 16
that are incidental to teaching and the provision of educational 17
services to nonpublic school students; that are noninstructional in 18
nature; that do not constitute a primary function or element 19
necessary for a nonpublic school's existence, operation, and 20
survival; that do not involve or result in excessive religious 21
entanglement; and that are intended for the public purpose of 22
ensuring the health, safety, and welfare of the children in 23
nonpublic schools and to reimburse nonpublic schools for costs 24
described in this section. 25
(8) Funds allocated under this section are not intended to aid 26
or maintain any nonpublic school, support the attendance of any 27
student at a nonpublic school, employ any person at a nonpublic 28
school, support the attendance of any student at any location where 29
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instruction is offered to a nonpublic school student, or support 1
the employment of any person at any location where instruction is 2
offered to a nonpublic school student. 3
(9) For purposes of this section, "actual cost" means the 4
hourly wage for the employee or employees performing a task or 5
tasks required to comply with a health, safety, or welfare 6
requirement under a law or administrative rule of this state 7
identified by the department under subsection (2) and is to be 8
calculated in accordance with the form published by the department 9
under subsection (2), which must include a detailed itemization of 10
costs. The nonpublic school shall not charge more than the hourly 11
wage of its lowest-paid employee capable of performing a specific 12
task regardless of whether that individual is available and 13
regardless of who actually performs a specific task. Labor costs 14
under this subsection must be estimated and charged in increments 15
of 15 minutes or more, with all partial time increments rounded 16
down. When calculating costs under subsection (4), fee components 17
must be itemized in a manner that expresses both the hourly wage 18
and the number of hours charged. The nonpublic school may not 19
charge any applicable labor charge amount to cover or partially 20
cover the cost of health or fringe benefits. A nonpublic school 21
shall not charge any overtime wages in the calculation of labor 22
costs. 23
(10) Training fees, inspection fees, and criminal background 24
check fees are considered actual costs in complying with a health, 25
safety, or welfare requirement under a law or administrative rule 26
of this state. 27
(11) The funds allocated under this section for 2025-2026 28
2026-2027 are a work project appropriation, and any unexpended 29
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funds for 2025-2026 2026-2027 are carried forward into 2026-2027. 1
2027-2028. The purpose of the work project is to continue to 2
reimburse nonpublic schools for actual costs incurred in complying 3
with a health, safety, or welfare requirement mandated by a law or 4
administrative rule of this state. The estimated completion date of 5
the work project is September 30, 2027.2028. 6
(12) The department shall reimburse nonpublic schools for 7
actual costs incurred in complying with health, safety, or welfare 8
requirements under a law or administrative rule of this state from 9
2017-2018 through 2022-2023 using work project funds or, if those 10
funds are insufficient to fund reimbursements under this 11
subsection, from the allocation under subsection (1). 12
Sec. 152c. (1) From the state school aid fund money 13
appropriated in section 11, there is allocated for 2026-2027 only 14
an amount not to exceed $5,000,000.00 to Marquette-Alger Regional 15
Educational Agency to develop statewide supports for the federal 16
tribal consultation requirements under the every student succeeds 17
act, Public Law 114-95. 18
(2) Marquette-Alger Regional Educational Agency shall use the 19
funds to support a collaboration that includes, but is not limited 20
to: 21
(a) Elected tribal leadership from federally recognized tribes 22
in Michigan. 23
(b) The Confederation of Michigan Tribal Education 24
Departments. 25
(c) School, district, and intermediate school district 26
leadership, including elected board members. 27
(d) Directors of programs impacted by the federal tribal 28
consultation requirements. 29
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(e) The department's indigenous education initiative. 1
(3) The collaboration described in subsection (2) shall do 2
both of the following: 3
(a) Create, disseminate, and evaluate professional learning to 4
support the implementation of the federal tribal consultation 5
requirements. 6
(b) By not later than January 1, 2028, and January 1 of each 7
subsequent fiscal year, prepare a summary report that includes 8
measurable outcomes to evaluate the progress made in the 9
development of effective government-to-government relations. The 10
report described in this subdivision must be submitted to the house 11
and senate appropriations subcommittees on school aid, the house 12
and senate fiscal agencies, and the state budget director. 13
(4) All of the following apply to professional learning 14
described in subsection (3)(a): 15
(a) The professional learning must include at least the 16
following: 17
(i) Identification of native students, including: 18
(A) Federal identification guidelines from the federal office 19
of management and budget under statistical policy directive number 20
15 for American Indian and Alaska Native students. 21
(B) Tribal affiliation data collection guidelines under MCL 22
388.1694a. 23
(C) Program participation data collection guidelines under MCL 24
388.1694a for federal programs funded under 20 USC 7401 to 7546 and 25
the Johnson-O'Malley supplemental Indian education program 26
modernization act, Public Law 115-404. 27
(ii) Guidelines and rules related to data sharing from school 28
districts to federally recognized tribes as governed by the federal 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
education rights and privacy act, 20 USC 1232, 34 CFR Part 99; the 1
federal protection of pupil rights amendment, 20 USC 1232g, 34 CFR 2
Part 98; and section 1136 of the revised school code, MCL 380.1136. 3
(iii) The federal tribal consultation requirements under the 4
every student succeeds act, Public Law 114-95. 5
(iv) Key elements of effective tribal consultation. 6
(b) The initial professional learning must be made available 7
to all administrators, staff, and board members in each local 8
educational agency, public school academy, and intermediate school 9
district by September 30, 2027, with additional resources released 10
at least annually during the course of the work project. 11
(5) The funds allocated under this section for 2026-2027 are a 12
work project appropriation, and any unexpended funds for 2026-2027 13
are carried forward into 2027-2028. The purpose of the work project 14
is to create, disseminate, and evaluate statewide supports for 15
local education agencies, public school academies, and intermediate 16
school districts in meeting federal requirements for tribal 17
consultation. The estimated completion date of the work project is 18
September 30, 2031. 19
(6) Notwithstanding section 17b, the department shall make 20
payments under this section on a schedule determined by the 21
department. 22
Sec. 163. (1) Except as otherwise provided in the revised 23
school code, the board of a district or intermediate district shall 24
not permit any of the following: 25
(a) An individual who is not appropriately placed under a 26
valid certificate, valid substitute permit, authorization, or 27
approval issued under rules promulgated by the department to teach 28
in an elementary or secondary school. 29
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(b) An individual who does not satisfy the requirements of 1
section 1233 of the revised school code, MCL 380.1233, and rules 2
promulgated by the department to provide school counselor services 3
to pupils in an elementary or secondary school. 4
(b) (c) An individual who does not satisfy the requirements of 5
section 1246 of the revised school code, MCL 380.1246, and rules 6
promulgated by the department to be employed as a superintendent, 7
principal, or assistant principal, or as an individual whose 8
primary responsibility is to administer instructional programs in 9
an elementary or secondary school or in a district or intermediate 10
district, unless the individual is working under a valid substitute 11
permit issued under rules promulgated by the department. 12
(2) Except as otherwise provided under subsection (4) or (5), 13
a district or intermediate district employing an individual in 14
violation of this section must have deducted an amount equal to 50% 15
of the amount paid to the individual for the period of employment 16
that is in violation of this section. Except as otherwise provided 17
under subsection (4) or (5), if a district or intermediate district 18
is notified by the department that it is employing an individual in 19
violation of this section and it continues to employ the individual 20
in violation of this section 10 business days after receiving the 21
notification, both of the following apply:if a district or 22
intermediate district employs an individual in violation of this 23
section, all of the following apply: 24
(a) The district or intermediate district must have deducted 25
an amount equal to 50% of the amount paid to the individual for the 26
period of employment that is in violation of this section that 27
occurs before the expiration of the 10-day period described in this 28
subsection. 29
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(b) The district or intermediate district must have deducted 1
an amount equal to 100% of the amount paid to the individual for 2
the period of employment that is in violation of this section that 3
occurs after the 10-day period described in this subsection. 4
(a) The district or intermediate district shall, not later 10 5
school days after receiving notice of the violation, rectify the 6
noncompliance. 7
(b) For the first violation within a 3-year period, the 8
district or intermediate district must receive a letter from the 9
superintendent of public instruction or superintendent of public 10
instruction's designee regarding the violation and potential 11
penalties as a result of further violations. 12
(c) For the second violation within a 3-year period, the 13
district or intermediate district must receive a letter with the 14
information described in subdivision (b) and must have deducted an 15
amount equal to 25% of the amount paid to the individual for the 16
period of employment that is in violation of this section. 17
(d) For the third violation within a 3-year period, the 18
district or intermediate district must receive a letter with the 19
information described in subdivision (b) and must have deducted an 20
amount equal to 50% of the amount paid to the individual for the 21
period of employment that is in violation of this section. 22
(3) For purposes of subsection (2), if both of the following 23
apply: 24
(a) If a district or intermediate district on behalf of an 25
individual or an individual successfully completes the credential 26
application process through the department, including the 27
submission of an appropriate application, required fees, and all 28
required supporting documentation, the individual's employment with 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
the district or intermediate district after this completion is not 1
considered a period of employment that is in violation of this 2
section. 3
(b) If a district or intermediate district has no violations 4
under this section for a period of 3 years after a violation under 5
subsection (1), the district or intermediate district is subject 6
only to the penalties described in subsection (2)(a) upon the next 7
violation. 8
(4) A deduction under subsection (2) for employment in 9
violation of this section may be less than the amount required 10
under that subsection if the superintendent of public instruction 11
finds that the district or intermediate district was hindered in 12
its ability to obtain a substitute credential to enable the 13
district or intermediate district to employ the individual in 14
compliance with this section due to unusual and extenuating 15
circumstances resulting from conditions not within the control of 16
school authorities, including, but not limited to, a natural 17
disaster, death or serious illness of the individual or another 18
employee, an emergency school closure, fraud or other intentional 19
wrongdoing of the individual or another employee, or an emergency 20
health condition as defined by city, county, or state health 21
authorities. 22
(5) There must be no deduction under subsection (2) for 23
employment of an individual if there is a membership adjustment 24
under section 15 based on the same employment.This section provides 25
the sole and exclusive penalty for a violation of subsection (1). A 26
district or intermediate district must not also be subject to a 27
membership adjustment under section 15 for a violation of 28
subsection (1). 29
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(6) If a school official is notified by the department that 1
the school official is employing an individual in violation of this 2
section and knowingly continues to employ that individual for a 3
period longer than 10 school days, the school official is guilty of 4
a misdemeanor punishable by a fine of $1,500.00 for each incident. 5
This penalty is in addition to all other financial penalties 6
otherwise specified in this article. 7
Sec. 164l. (1) Not later than 30 days after the enactment of 8
the any amendatory act that added to this section, article, the 9
legislature house and senate shall provide to the responsible 10
entity and the state budget director a list of legislatively 11
directed spending items, which may be referred to in this section 12
as grants or direct appropriation grants, funded under the 13
amendatory act that added this section consistent with house or 14
senate rules and this section. as defined in sections 364 and 364a 15
of the management and budget act, MCL 18.1364 and 18.1364a, that 16
are funded by the amendatory act. The list must include all 17
information and documents pertaining to the funded items as 18
publicly disclosed in accordance with house or senate rules and 19
this section.under sections 364 and 364a of the management and 20
budget act, MCL 18.1364 and 18.1364a. 21
(2) Notwithstanding any other conditions or requirements for 22
direct appropriation grants, the responsible entity shall perform, 23
at a minimum, at least all of the following activities to 24
administer the grants described in subsection (1): 25
(a) Establish a process to review, complete, and execute a 26
grant agreement with a grant recipient. The responsible entity 27
shall not execute a grant agreement unless all necessary 28
documentation has been submitted and reviewed. 29
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(b) Verify to the extent possible that a grant recipient is a 1
not-for-profit entity and will use funds as publicly disclosed and 2
for a public purpose that serves the economic prosperity, health, 3
safety, or general welfare of the residents of this state. 4
(c) Review and verify all necessary information to ensure the 5
grant recipient is reasonably able to execute the grant agreement, 6
perform its fiduciary duty, and comply with all applicable state 7
and federal statutes. The responsible entity may deduct the cost of 8
background checks and any other efforts performed as part of this 9
verification from the amount of the designated grant award. 10
(d) Disburse the grant money per the grant disbursement 11
schedule in the executed grant agreement on a reimbursement basis 12
after the grantee has provided sufficient documentation, as 13
determined by the responsible entity, to verify that expenditures 14
were made in accordance with the project purpose. 15
(e) If the state budget director determines that information 16
provided by the grantee does not meet the disclosure requirements, 17
that the grant will be used to pay a tax lien, delinquent tax, or 18
other obligation owed to this state, or that the grant will create 19
a conflict of interest, the responsible entity shall not release 20
the grant money to the grantee. Money that is not released under 21
this subdivision lapses at the end of the fiscal year. There is not 22
a conflict of interest if the sponsoring legislator certifies that 23
the sponsoring legislator's immediate family members, legislative 24
staff members that have worked for the sponsoring legislator within 25
the past 2 years, and the sponsoring legislator do not have a 26
direct or indirect pecuniary interest in the legislatively directed 27
spending item. 28
(3) An executed grant agreement under this section between the 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
responsible entity and a grant recipient must include at least all 1
of the following: 2
(a) All necessary identifying information for the grant 3
recipient, including any tax and financial information necessary 4
for the responsible entity to administer grant money under this 5
section. 6
(b) A description of the project for which the grant money 7
will be expended, including tentative timelines and the estimated 8
budget. Project budget must include how all grant money will be 9
used and must indicate if any grant money will be provided to a 10
third party or subrecipient. The responsible entity shall not 11
reimburse expenditures that are outside of the project purpose, as 12
stated in the executed grant agreement, from appropriations under 13
the amendatory act that added this section. The grantee shall 14
return to the state treasury any interest in excess of $1,000.00 15
earned on the grant money while unexpended and in possession of the 16
grantee. 17
(c) Unless otherwise specified in the responsible entity's 18
policy, a requirement that funds appropriated for the grants 19
described in subsection (1) may be used only for expenditures that 20
occur on or after the effective date of the amendatory act that 21
added this section. 22
(d) A requirement for reporting by the grant recipient to the 23
responsible entity and the legislative sponsor that provides the 24
status of the project and an accounting of all money expended by 25
the grant recipient, as determined by the responsible entity. 26
(e) A clawback provision that allows the department of 27
treasury to recoup or otherwise collect any grant money that is 28
declined, unspent, or otherwise misused. 29
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(f) The documents publicly disclosed under subsection (1). 1
(4) If appropriate to improve the administration or oversight 2
of a grant described in subsection (1), the responsible entity may 3
adopt a memorandum of understanding with another state department 4
to perform the required duties under this section. 5
(5) A grant recipient shall respond to all reasonable 6
information requests from the responsible entity related to grant 7
expenditures and retain grant records for not less than 7 years, 8
and the grant may be subject to monitoring, site visits, and audit 9
as determined by the responsible entity. The grant agreement 10
required under this section must include signed assurance by the 11
chief executive officer or other executive officer of the grant 12
recipient authorized to bind the grant recipient that the 13
requirements of this subsection will be met. 14
(6) The grant recipient shall expend all grant money awarded 15
and complete all projects not later than September 30, 2030. If, at 16
that time, any unexpended money remains, the grant recipient shall 17
return that money to the state treasury. If a grant recipient does 18
not provide information sufficient to execute a grant agreement not 19
later than June 1, 2026, the responsible entity shall return money 20
associated with the grant to the state treasury. 21
(7) Any grant money that is awarded to a responsible entity is 22
appropriated in that responsible entity for the purpose of the 23
intended grant. 24
(8) Except as otherwise provided in subsection (9), beginning 25
March 15 of the current fiscal year, the responsible entity shall 26
post a report in a publicly accessible location on its website. The 27
report must list the grant recipient, project purpose, and location 28
of the project for each grant described in subsection (1), the 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
status of money allocated and disbursed under the grant agreement, 1
and the legislative sponsor, if applicable. The responsible entity 2
shall update the report and post the updated report in a publicly 3
accessible location on its website not later than June 15 of the 4
current fiscal year and again not later than September 15 of the 5
current fiscal year. The responsible entity shall include in the 6
report the most comprehensive information the responsible entity 7
has available at the time of posting for grants awarded. 8
(9) If the state budget office determines that it is more 9
efficient for the state budget office to compile all affected 10
responsible entities' information and post a report of the compiled 11
information rather than the report required under subsection (8) 12
being posted by individual responsible entities, the state budget 13
office may compile that information across all affected responsible 14
entities and other state departments and post the compiled report 15
and any updates on the same time schedule as identified in 16
subsection (8). 17
(10) If the responsible entity reasonably determines that the 18
money allocated for an executed grant agreement under this section 19
was misused or that use of the money was misrepresented by the 20
grant recipient, the responsible entity shall not award any 21
additional funds under the executed grant agreement and shall refer 22
the grant for review following internal audit protocols, which may 23
include referral for criminal investigation. 24
(11) As used in this section, "responsible entity" means the 25
department, the department of lifelong education, advancement, and 26
potential, a district, an intermediate district, or other person 27
that administers a grant under this article. 28
(2) In accordance with section 364 of the management and 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
budget act, 1984 PA 431, MCL 18.1364, the department or agency 1
administering the grant shall post a report in a publicly 2
accessible location on its website beginning March 15 of the 3
current fiscal year. The department or agency shall update the 4
report and shall post an updated report not later than June 15 of 5
the current fiscal year and again not later than September 15 of 6
the current fiscal year. The department shall include in the report 7
the most comprehensive information the department has available at 8
the time of posting for grants awarded. 9
Sec. 201. (1) Subject to the conditions set forth in this 10
article, the amounts listed in this section are appropriated for 11
community colleges for the fiscal year ending September 30, 2026, 12
2027, from the funds indicated in this section. The following is a 13
summary of the appropriations in this section and section 201f: 14
(a) The gross appropriation is $493,032,100.00. 15
$490,763,500.00. After deducting total interdepartmental grants and 16
intradepartmental transfers in the amount of $0.00, the adjusted 17
gross appropriation is $493,032,100.00.$490,763,500.00. 18
(b) The sources of the adjusted gross appropriation described 19
in subdivision (a) are as follows: 20
(i) Total federal revenues, $0.00. 21
(ii) Total local revenues, $0.00. 22
(iii) Total private revenues, $0.00. 23
(iv) Total other state restricted revenues, 24
$493,032,100.00.$490,763,500.00. 25
(v) State general fund/general purpose money, $0.00. 26
(2) Subject to subsection (3), the amount appropriated for 27
community college operations is $363,570,600.00, $363,594,500.00, 28
allocated as follows: 29
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(a) The appropriation for Alpena Community College is 1
$6,416,800.00, $6,403,300.00 for operations, $0.00 for performance 2
funding, and $13,500.00 for costs incurred under the North American 3
Indian tuition waiver.$6,431,400.00, $6,403,300.00 for operations, 4
$0.00 for performance funding, and $28,100.00 for costs incurred 5
under the North American Indian tuition waiver. 6
(b) The appropriation for Bay de Noc Community College is 7
$6,390,000.00, $6,298,000.00 for operations, $0.00 for performance 8
funding, and $92,000.00 for costs incurred under the North American 9
Indian tuition waiver.$6,410,300.00, $6,298,000.00 for operations, 10
$0.00 for performance funding, and $112,300.00 for costs incurred 11
under the North American Indian tuition waiver. 12
(c) The appropriation for Delta College is $16,934,200.00, 13
$16,882,400.00 for operations, $0.00 for performance funding, and 14
$51,800.00 for costs incurred under the North American Indian 15
tuition waiver.$16,928,400.00, $16,882,400.00 for operations, $0.00 16
for performance funding, and $46,000.00 for costs incurred under 17
the North American Indian tuition waiver. 18
(d) The appropriation for Glen Oaks Community College is 19
$2,987,000.00, $2,984,100.00 for operations, $0.00 for performance 20
funding, and $2,900.00 for costs incurred under the North American 21
Indian tuition waiver.$2,984,500.00, $2,984,100.00 for operations, 22
$0.00 for performance funding, and $400.00 for costs incurred under 23
the North American Indian tuition waiver. 24
(e) The appropriation for Gogebic Community College is 25
$5,439,100.00, $5,399,000.00 for operations, $0.00 for performance 26
funding, and $40,100.00 for costs incurred under the North American 27
Indian tuition waiver.$5,417,900.00, $5,399,000.00 for operations, 28
$0.00 for performance funding, and $18,900.00 for costs incurred 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
under the North American Indian tuition waiver. 1
(f) The appropriation for Grand Rapids Community College is 2
$21,337,300.00, $21,184,200.00 for operations, $0.00 for 3
performance funding, and $153,100.00 for costs incurred under the 4
North American Indian tuition waiver.$21,387,200.00, $21,184,200.00 5
for operations, $0.00 for performance funding, and $203,000.00 for 6
costs incurred under the North American Indian tuition waiver. 7
(g) The appropriation for Henry Ford College is 8
$25,305,200.00, $25,300,700.00 for operations, $0.00 for 9
performance funding, and $4,500.00 for costs incurred under the 10
North American Indian tuition waiver.$25,308,100.00, $25,300,700.00 11
for operations, $0.00 for performance funding, and $7,400.00 for 12
costs incurred under the North American Indian tuition waiver. 13
(h) The appropriation for Jackson College is $14,059,700.00, 14
$14,032,600.00 for operations, $0.00 for performance funding, and 15
$27,100.00 for costs incurred under the North American Indian 16
tuition waiver.$14,054,800.00, $14,032,600.00 for operations, $0.00 17
for performance funding, and $22,200.00 for costs incurred under 18
the North American Indian tuition waiver. 19
(i) The appropriation for Kalamazoo Valley Community College 20
is $14,751,300.00, $14,704,400.00 for operations, $0.00 for 21
performance funding, and $46,900.00 for costs incurred under the 22
North American Indian tuition waiver.$14,744,600.00, $14,704,400.00 23
for operations, $0.00 for performance funding, and $40,200.00 for 24
costs incurred under the North American Indian tuition waiver. 25
(j) The appropriation for Kellogg Community College is 26
$11,453,400.00, $11,426,700.00 for operations, $0.00 for 27
performance funding, and $26,700.00 for costs incurred under the 28
North American Indian tuition waiver.$11,470,000.00, $11,426,700.00 29
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for operations, $0.00 for performance funding, and $43,300.00 for 1
costs incurred under the North American Indian tuition waiver. 2
(k) The appropriation for Kirtland Community College is 3
$3,881,400.00, $3,835,100.00 for operations, $0.00 for performance 4
funding, and $46,300.00 for costs incurred under the North American 5
Indian tuition waiver.$3,881,400.00, $3,835,100.00 for operations, 6
$0.00 for performance funding, and $46,300.00 for costs incurred 7
under the North American Indian tuition waiver. 8
(l) The appropriation for Lake Michigan College is 9
$6,427,600.00, $6,408,200.00 for operations, $0.00 for performance 10
funding, and $19,400.00 for costs incurred under the North American 11
Indian tuition waiver.$6,417,300.00, $6,408,200.00 for operations, 12
$0.00 for performance funding, and $9,100.00 for costs incurred 13
under the North American Indian tuition waiver. 14
(m) The appropriation for Lansing Community College is 15
$36,216,500.00, $36,134,400.00 for operations, $0.00 for 16
performance funding, and $82,100.00 for costs incurred under the 17
North American Indian tuition waiver.$36,206,200.00, $36,134,400.00 18
for operations, $0.00 for performance funding, and $71,800.00 for 19
costs incurred under the North American Indian tuition waiver. 20
(n) The appropriation for Macomb Community College is 21
$38,251,500.00, $38,160,600.00 for operations, $0.00 for 22
performance funding, and $90,900.00 for costs incurred under the 23
North American Indian tuition waiver.$38,187,600.00, $38,160,600.00 24
for operations, $0.00 for performance funding, and $27,000.00 for 25
costs incurred under the North American Indian tuition waiver. 26
(o) The appropriation for Mid Michigan Community College is 27
$5,919,500.00, $5,837,000.00 for operations, $0.00 for performance 28
funding, and $82,500.00 for costs incurred under the North American 29
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Indian tuition waiver.$5,921,400.00, $5,837,000.00 for operations, 1
$0.00 for performance funding, and $84,400.00 for costs incurred 2
under the North American Indian tuition waiver. 3
(p) The appropriation for Monroe County Community College is 4
$5,368,900.00, $5,368,500.00 for operations, $0.00 for performance 5
funding, and $400.00 for costs incurred under the North American 6
Indian tuition waiver.$5,371,200.00, $5,368,500.00 for operations, 7
$0.00 for performance funding, and $2,700.00 for costs incurred 8
under the North American Indian tuition waiver. 9
(q) The appropriation for Montcalm Community College is 10
$4,035,000.00, $4,033,300.00 for operations, $0.00 for performance 11
funding, and $1,700.00 for costs incurred under the North American 12
Indian tuition waiver.$4,042,800.00, $4,033,300.00 for operations, 13
$0.00 for performance funding, and $9,500.00 for costs incurred 14
under the North American Indian tuition waiver. 15
(r) The appropriation for C.S. Mott Community College is 16
$18,028,100.00, $18,017,800.00 for operations, $0.00 for 17
performance funding, and $10,300.00 for costs incurred under the 18
North American Indian tuition waiver.$18,032,100.00, $18,017,800.00 19
for operations, $0.00 for performance funding, and $14,300.00 for 20
costs incurred under the North American Indian tuition waiver. 21
(s) The appropriation for Muskegon Community College is 22
$10,403,400.00, $10,359,900.00 for operations, $0.00 for 23
performance funding, and $43,500.00 for costs incurred under the 24
North American Indian tuition waiver.$10,412,100.00, $10,359,900.00 25
for operations, $0.00 for performance funding, and $52,200.00 for 26
costs incurred under the North American Indian tuition waiver. 27
(t) The appropriation for North Central Michigan College is 28
$4,110,100.00, $3,947,700.00 for operations, $0.00 for performance 29
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funding, and $162,400.00 for costs incurred under the North 1
American Indian tuition waiver.$4,110,600.00, $3,947,700.00 for 2
operations, $0.00 for performance funding, and $162,900.00 for 3
costs incurred under the North American Indian tuition waiver. 4
(u) The appropriation for Northwestern Michigan College is 5
$10,874,500.00, $10,619,800.00 for operations, $0.00 for 6
performance funding, and $254,700.00 for costs incurred under the 7
North American Indian tuition waiver.$10,885,800.00, $10,619,800.00 8
for operations, $0.00 for performance funding, and $266,000.00 for 9
costs incurred under the North American Indian tuition waiver. 10
(v) The appropriation for Oakland Community College is 11
$25,168,400.00, $25,130,000.00 for operations, $0.00 for 12
performance funding, and $38,400.00 for costs incurred under the 13
North American Indian tuition waiver.$25,166,900.00, $25,130,000.00 14
for operations, $0.00 for performance funding, and $36,900.00 for 15
costs incurred under the North American Indian tuition waiver. 16
(w) The appropriation for Schoolcraft College is 17
$14,997,300.00, $14,972,000.00 for operations, $0.00 for 18
performance funding, and $25,300.00 for costs incurred under the 19
North American Indian tuition waiver.$14,989,100.00, $14,972,000.00 20
for operations, $0.00 for performance funding, and $17,100.00 for 21
costs incurred under the North American Indian tuition waiver. 22
(x) The appropriation for Southwestern Michigan College is 23
$7,805,700.00, $7,786,600.00 for operations, $0.00 for performance 24
funding, and $19,100.00 for costs incurred under the North American 25
Indian tuition waiver.$7,803,100.00, $7,786,600.00 for operations, 26
$0.00 for performance funding, and $16,500.00 for costs incurred 27
under the North American Indian tuition waiver. 28
(y) The appropriation for St. Clair County Community College 29
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is $8,355,300.00, $8,342,000.00 for operations, $0.00 for 1
performance funding, and $13,300.00 for costs incurred under the 2
North American Indian tuition waiver.$8,351,300.00, $8,342,000.00 3
for operations, $0.00 for performance funding, and $9,300.00 for 4
costs incurred under the North American Indian tuition waiver. 5
(z) The appropriation for Washtenaw Community College is 6
$16,276,300.00, $16,257,300.00 for operations, $0.00 for 7
performance funding, and $19,000.00 for costs incurred under the 8
North American Indian tuition waiver.$16,289,700.00, $16,257,300.00 9
for operations, $0.00 for performance funding, and $32,400.00 for 10
costs incurred under the North American Indian tuition waiver. 11
(aa) The appropriation for Wayne County Community College is 12
$19,462,800.00, $19,460,300.00 for operations, $0.00 for 13
performance funding, and $2,500.00 for costs incurred under the 14
North American Indian tuition waiver.$19,464,000.00, $19,460,300.00 15
for operations, $0.00 for performance funding, and $3,700.00 for 16
costs incurred under the North American Indian tuition waiver. 17
(bb) The appropriation for West Shore Community College is 18
$2,914,300.00, $2,896,700.00 for operations, $0.00 for performance 19
funding, and $17,600.00 for costs incurred under the North American 20
Indian tuition waiver.$2,924,700.00, $2,896,700.00 for operations, 21
$0.00 for performance funding, and $28,000.00 for costs incurred 22
under the North American Indian tuition waiver. 23
(3) The amount appropriated in subsection (2) for community 24
college operations is $363,570,600.00 $363,594,500.00 and is 25
appropriated from the state school aid fund. 26
(4) From the appropriations described in subsection (1), both 27
of the following apply: 28
(a) Subject to section 207a, the amount appropriated for 29
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fiscal year 2025-2026 2026-2027 to offset certain fiscal year 2025-1
2026 2026-2027 retirement contributions is $7,189,000.00, 2
appropriated from the state school aid fund. 3
(b) For fiscal year 2025-2026, 2026-2027, there is allocated 4
an amount not to exceed $19,600,000.00 $18,350,000.00 for payments 5
to participating community colleges, appropriated from the state 6
school aid fund. A community college that receives money under this 7
subdivision shall use that money solely for the purpose of 8
offsetting the normal cost contribution rate. 9
(5) From the appropriations described in subsection (1), 10
subject to section 207b, the amount appropriated for payments to 11
community colleges that are participating entities of the 12
retirement system is $89,500,000.00, $84,800,000.00, appropriated 13
from the state school aid fund. 14
(6) From the appropriations described in subsection (1), 15
subject to section 207c, the amount appropriated for renaissance 16
zone tax reimbursements is $2,200,000.00, appropriated from the 17
state school aid fund. Each community college receiving funds in 18
this subsection shall accrue these payments to its institutional 19
fiscal year ending June 30, 2026.2027. 20
Sec. 201f. For fiscal year 2025-2026 2026-2027 only, from the 21
appropriations described in section 201(1), $10,972,500.00 22
$14,630,000.00 is appropriated from the state school aid fund for a 23
1-time performance funding payment. Funds appropriated under this 24
section, subject to conditions described in sections 217b and 230, 25
must be distributed as follows: 26
(a) Alpena Community College, $271,100.00.$233,300.00. 27
(b) Bay de Noc Community College, $178,200.00.$234,700.00. 28
(c) Delta College, $493,300.00.$644,400.00. 29
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(d) Glen Oaks Community College, $91,200.00.$132,700.00. 1
(e) Gogebic Community College, $139,500.00.$212,000.00. 2
(f) Grand Rapids Community College, $685,500.00.$902,800.00. 3
(g) Henry Ford College, $750,900.00.$990,300.00. 4
(h) Jackson College, $364,800.00.$513,000.00. 5
(i) Kalamazoo Valley Community College, 6
$433,700.00.$615,100.00. 7
(j) Kellogg Community College, $324,400.00.$433,800.00. 8
(k) Kirtland Community College, $146,500.00.$212,400.00. 9
(l) Lake Michigan College, $192,200.00.$284,000.00. 10
(m) Lansing Community College, $924,700.00.$1,189,000.00. 11
(n) Macomb Community College, $1,090,600.00.$1,450,400.00. 12
(o) Mid Michigan Community College, $193,900.00.$254,500.00. 13
(p) Monroe County Community College, $206,600.00.$230,100.00. 14
(q) Montcalm Community College, $122,300.00.$162,700.00. 15
(r) C.S. Mott Community College, $491,700.00.$658,400.00. 16
(s) Muskegon Community College, $298,600.00.$394,200.00. 17
(t) North Central Michigan College, $144,300.00.$217,800.00. 18
(u) Northwestern Michigan College, $289,400.00.$387,800.00. 19
(v) Oakland Community College, $816,500.00.$1,146,800.00. 20
(w) Schoolcraft College, $503,200.00.$684,300.00. 21
(x) Southwestern Michigan College, $210,400.00.$276,800.00. 22
(y) St. Clair County Community College, 23
$258,200.00.$360,200.00. 24
(z) Washtenaw Community College, $664,900.00.$881,100.00. 25
(aa) Wayne County Community College, $600,900.00.$792,600.00. 26
(bb) West Shore Community College, $85,000.00.$134,800.00. 27
Sec. 201i. (1) Not later than Within 30 days after of the 28
enactment of the an amendatory act that added this section, to this 29
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article, the legislature house and senate shall provide to the 1
responsible entity and the state budget director office a jointly 2
agreed upon list of legislatively directed spending items, which 3
may be referred to in this section as grants or direct 4
appropriation grants, funded under the amendatory act that added 5
this section consistent with house or senate rules and this 6
section. funded by the amendatory act. The list must include all 7
information and documents pertaining to the funded items as 8
publicly disclosed in accordance with house or senate rules and 9
this section.sections 364 and 364a of the management and budget 10
act, 1984 PA 431, MCL 18.1364 and 18.1364a. As used in this 11
subsection, "legislatively directed spending item" means that term 12
as defined in section 364 of the management and budget act, 1984 PA 13
431, MCL 18.1364. 14
(2) Notwithstanding any other conditions or requirements for 15
direct appropriation grants, the responsible entity shall perform, 16
at a minimum, at least all of the following activities to 17
administer the grants described in subsection (1): 18
(a) Establish a process to review, complete, and execute a 19
grant agreement with a grant recipient. The responsible entity 20
shall not execute a grant agreement unless all necessary 21
documentation has been submitted and reviewed. 22
(b) Verify to the extent possible that a grant recipient is a 23
not-for-profit entity and will use funds as publicly disclosed and 24
for a public purpose that serves the economic prosperity, health, 25
safety, or general welfare of the residents of this state. 26
(c) Review and verify all necessary information to ensure the 27
grant recipient is reasonably able to execute the grant agreement, 28
perform its fiduciary duty, and comply with all applicable state 29
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and federal statutes. The responsible entity may deduct the cost of 1
background checks and any other efforts performed as part of this 2
verification from the amount of the designated grant award. 3
(d) Disburse the grant money per the grant disbursement 4
schedule in the executed grant agreement on a reimbursement basis 5
after the grantee has provided sufficient documentation, as 6
determined by the responsible entity, to verify that expenditures 7
were made in accordance with the project purpose. 8
(e) If the state budget director determines that information 9
provided by the grantee does not meet the disclosure requirements, 10
that the grant will be used to pay a tax lien, delinquent tax, or 11
other obligation owed to this state, or that the grant will create 12
a conflict of interest, the responsible entity shall not release 13
the grant money to the grantee. Money that is not released under 14
this subdivision lapses at the end of the fiscal year. There is not 15
a conflict of interest if the sponsoring legislator certifies that 16
the sponsoring legislator's immediate family members, legislative 17
staff members that have worked for the sponsoring legislator within 18
the past 2 years, and the sponsoring legislator do not have a 19
direct or indirect pecuniary interest in the legislatively directed 20
spending item. 21
(3) An executed grant agreement under this section between the 22
responsible entity and a grant recipient must include at least all 23
of the following: 24
(a) All necessary identifying information for the grant 25
recipient, including any tax and financial information necessary 26
for the responsible entity to administer grant money under this 27
section. 28
(b) A description of the project for which the grant money 29
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will be expended, including tentative timelines and the estimated 1
budget. Project budget must include how all grant money will be 2
used and must indicate if any grant money will be provided to a 3
third party or subrecipient. The responsible entity shall not 4
reimburse expenditures that are outside of the project purpose, as 5
stated in the executed grant agreement, from appropriations under 6
the amendatory act that added this section. The grantee shall 7
return to the state treasury any interest in excess of $1,000.00 8
earned on the grant money while unexpended and in possession of the 9
grantee. 10
(c) Unless otherwise specified in the responsible entity's 11
policy, a requirement that funds appropriated for the grants 12
described in subsection (1) may be used only for expenditures that 13
occur on or after the effective date of the amendatory act that 14
added this section. 15
(d) A requirement for reporting by the grant recipient to the 16
responsible entity and the legislative sponsor that provides the 17
status of the project and an accounting of all money expended by 18
the grant recipient, as determined by the responsible entity. 19
(e) A clawback provision that allows the department of 20
treasury to recoup or otherwise collect any grant money that is 21
declined, unspent, or otherwise misused. 22
(f) The documents publicly disclosed under subsection (1). 23
(4) If appropriate to improve the administration or oversight 24
of a grant described in subsection (1), the responsible entity may 25
adopt a memorandum of understanding with another state department 26
to perform the required duties under this section. 27
(5) A grant recipient shall respond to all reasonable 28
information requests from the responsible entity related to grant 29
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expenditures and retain grant records for not less than 7 years, 1
and the grant may be subject to monitoring, site visits, and audit 2
as determined by the responsible entity. The grant agreement 3
required under this section must include signed assurance by the 4
chief executive officer or other executive officer of the grant 5
recipient authorized to bind the grant recipient that the 6
requirements of this subsection will be met. 7
(6) The grant recipient shall expend all grant money awarded 8
and complete all projects not later than September 30, 2030. If at 9
that time any unexpended money remains, the grant recipient shall 10
return that money to the state treasury. If a grant recipient does 11
not provide information sufficient to execute a grant agreement not 12
later than June 1, 2026, the responsible entity shall return money 13
associated with the grant to the state treasury. 14
(7) Any grant money that is awarded to a responsible entity is 15
appropriated in that responsible entity for the purpose of the 16
intended grant. 17
(2) (8) Except as otherwise provided in subsection (9), 18
beginning March 15 of the current fiscal year, the responsible 19
entity In accordance with section 364(4) of the management and 20
budget act, 1984 PA 431, MCL 18.1364, the department or agency 21
administering the grant described in subsection (1) shall post a 22
report in a publicly accessible location on its website beginning 23
March 15 of the current fiscal year. The report must list the grant 24
recipient, project purpose, and location of the project for each 25
grant described in subsection (1), the status of money allocated 26
and disbursed under the grant agreement, and the legislative 27
sponsor, if applicable. The responsible entity The department or 28
agency shall update the report and shall post the an updated report 29
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in a publicly accessible location on its website not later than 1
June 15 of the current fiscal year and again not later than 2
September 15 of the current fiscal year. The responsible entity 3
department or agency shall include in the report the most 4
comprehensive information the responsible entity department or 5
agency has available at the time of posting for grants awarded. 6
(9) If the state budget office determines that it is more 7
efficient for the state budget office to compile all affected 8
responsible entities' information and post a report of the compiled 9
information rather than the report required under subsection (8) 10
being posted by individual responsible entities, the state budget 11
office may compile that information across all affected responsible 12
entities and other state departments and post the compiled report 13
and any updates on the same time schedule as identified in 14
subsection (8). 15
(10) If the responsible entity reasonably determines that the 16
money allocated for an executed grant agreement under this section 17
was misused or that use of the money was misrepresented by the 18
grant recipient, the responsible entity shall not award any 19
additional funds under the executed grant agreement and shall refer 20
the grant for review following internal audit protocols, which may 21
include referral for criminal investigation. 22
(11) As used in this section, "responsible entity" means the 23
department of lifelong education, advancement, and potential, a 24
community college, or other person that administers a grant under 25
this article. 26
Sec. 206. (1) Except for the funds appropriated in section 27
201(4)(b), the funds appropriated in section sections 201 and 201f 28
are appropriated for community colleges with fiscal years ending 29
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June 30, 2026 2027 and must be paid out of the state treasury and 1
distributed by the state treasurer to the respective community 2
colleges in 11 monthly installments on the sixteenth of each month, 3
or the next succeeding business day, beginning with October 16, 4
2025. 2026. Each community college shall accrue its July and August 5
2026 2027 payments to its institutional fiscal year ending June 30, 6
2026.2027. 7
(2) The funds appropriated in section 201(4)(b) are 8
appropriated for community colleges with fiscal years ending June 9
30, 2026 2027 and must be distributed to the respective community 10
colleges in quarterly installments on the sixteenth of each 11
November, February, May, and August. Each community college shall 12
accrue its August 2026 2027 payments to its institutional fiscal 13
year ending June 30, 2026.2027. 14
Sec. 207c. All of the following apply to the allocation of the 15
appropriations described in section 201(6) to community colleges 16
described in section 12(3) of the Michigan renaissance zone act, 17
1996 PA 376, MCL 125.2692: 18
(a) The amount allocated to each community college under 19
section 201(6) for fiscal year 2025-2026 2026-2027 must be based on 20
that community college's proportion of total revenue lost by 21
community colleges as a result of the exemption of property taxes 22
levied in 2025 2026 under the Michigan renaissance zone act, 1996 23
PA 376, MCL 125.2681 to 125.2696. 24
(b) The appropriations described in section 201(6) must be 25
made to each eligible community college within 60 days after the 26
department of treasury certifies to the state budget director that 27
it has received all necessary information to properly determine the 28
amounts payable to each eligible community college under section 12 29
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of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692. 1
Sec. 212. Community college districts are encouraged to 2
evaluate and pursue efficiency and cost-containment measures that 3
maximize state funding. Community colleges shall identify practices 4
that increase efficiencies, including, but not limited to, 5
establishing joint ventures, consolidating services, utilizing 6
program collaborations, maximizing educational benefits through 7
optimal class sizes and frequency of course offerings, increasing 8
web-based instruction, eliminating low-enrollment and high-cost 9
instructional programs, using self-insurance, practicing energy 10
conservation, and utilizing group purchasing. Community colleges 11
shall also review proposed capital outlay projects to increase 12
coordination and utilization of new facilities, renovation 13
projects, and technology improvements. 14
Sec. 216e. (1) Payments under section 201 201f for 1-time 15
performance funding must be made only to a community college that 16
certifies to the state budget director by the last business day of 17
August each year that it complies with the following: 18
(a) The institutional best practice described in subdivision 19
(c). 20
(b) One or more of the institutional best practices described 21
in subdivisions (d) to (g). 22
(a) (c) The community college accepts the Michigan Transfer 23
Agreement, partners with the Michigan Transfer Network, and 24
promotes clear transfer pathways for interested students by doing 25
all of the following: 26
(i) Has a policy to help transfer or accept associate degrees 27
from other accredited Michigan postsecondary education 28
institutions. 29
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(ii) Publishes the policy described in subparagraph (i) on the 1
institution's website in an easily accessible way and in admissions 2
materials. 3
(iii) Provides publicly available information on the Michigan 4
Transfer Network, applicable transfer pathways, and financial aid 5
available to transfer students, at no cost to the student. 6
(iv) Begins negotiations to increase the number of reverse 7
transfer agreements or articulation agreements and reports on the 8
progress toward completing the agreements to the state budget 9
director by the last business day in February. 10
(b) (d) The community college requires all students to receive 11
an academic degree or certificate map that outlines required course 12
sequencing, program and institution requirements, declared minor 13
program academic requirements, and a recommended timeline within 14
which courses should be taken and in which specific semester or 15
term in order to satisfy all program requirements to allow the 16
student to graduate on time. 17
(c) (e) The community college provides non-credit-bearing 18
developmental or remedial courses at a reduced cost to students. 19
(d) (f) The community college provides each degree- or 20
certificate-seeking student with a designated, trained academic 21
advisor to support student retention, persistence, and completion. 22
The community college shall require students to meet with their 23
academic advisor at least once per semester or term. 24
(e) (g) The community college provides employees during 25
business hours to assist prospective and current students in 26
completing the Free Application for Federal Student Aid. 27
(f) The community college has adopted a corequisite model of 28
academic support for gateway English and mathematics courses in 29
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which a student concurrently enrolls in a developmental education 1
course and a gateway-level course in a subject area where the 2
student requires remediation. The community college shall ensure 3
that not more than 10% of students assessed as being in need of 4
developmental or remedial learning participate in a non-corequisite 5
developmental or remedial course. 6
(g) The community college has a policy and process for 7
assessing prior learning and knowledge that aligns with a student's 8
academic program and other required coursework. The policy must 9
include the opportunity for a student to earn credit toward a 10
degree or certificate, must be available to all students at no cost 11
to the student, and must be easily accessible on the community 12
college's website and in admissions materials. 13
(2) The state budget director of the department of lifelong 14
education, advancement, and potential, or the director's designee, 15
shall implement uniform reporting requirements to ensure that a 16
community college receiving a payment under section 201 for 17
performance funding has satisfied the institutional best practices 18
requirements of this section. The state budget director of the 19
department of lifelong education, advancement, and potential, or 20
the director's designee, has the sole authority to determine if a 21
community college has met the requirements of this section. 22
Information reported by a community college to the state budget 23
director of the department of lifelong education, advancement, and 24
potential, or the director's designee, under this subsection must 25
also be reported to the house and senate appropriations 26
subcommittees on higher education and the house and senate fiscal 27
agencies. 28
(3) If a community college fails to comply with the 29
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certification requirements of this section, the state treasurer may 1
withhold the monthly installments under section 206 to the 2
community college until the certification is completed. If a 3
community college does not comply with the certification 4
requirements described in this section by the end of the fiscal 5
year, the community college forfeits the amount withheld. Forfeited 6
funds must lapse to the state school aid fund. The state budget 7
director of the department of lifelong education, advancement, and 8
potential, or the director's designee, shall notify the chairs of 9
the house and senate appropriations subcommittees on higher 10
education at least 10 days before withholding funds from any 11
community college. 12
(4) No later than the last business day of November of each 13
year, each community college that receives a payment under section 14
201f shall provide a report to the director of the department of 15
lifelong education, advancement, and potential, or the director's 16
designee, that includes the following information for the prior 17
academic year: 18
(a) College persistence for on-time completion, defined by 30 19
credits completed for every 12 consecutive months of enrollment for 20
certificate or degree-seeking students. 21
(b) College completion, defined by certificate or degree 22
conferral. 23
Sec. 217a. (1) Each community college that receives an 24
appropriation in section sections 201 and 201f shall submit all of 25
the following information in the form and manner specified by the 26
center: 27
(a) The Michigan community colleges verified data inventory 28
data for the preceding academic year to the center by the first 29
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business day of November of each year as specified in section 217. 1
(b) Tuition and mandatory fees information as specified in 2
section 217b. 3
(c) The longitudinal data set to the center as specified in 4
section 219. 5
(d) The number and type of associate degrees, baccalaureate 6
degrees, and other certificates awarded as specified in section 7
219. 8
(e) The annual independent audit as specified in section 222. 9
(f) The community college's certification of its compliance 10
with the requirements described in subsections (4) to (7). 11
(2) If the state budget director determines that a community 12
college failed to submit any of the information described in 13
subsection (1) in the form and manner specified by the center, the 14
state treasurer budget director may withhold the monthly state 15
operations installments described in section sections 201 and 201f 16
from that community college until those data are submitted. If a 17
community college does not submit any of the information described 18
in subsection (1) by the end of the fiscal year, the community 19
college forfeits any withheld amount. The state budget director 20
shall notify the chairs of the house and senate appropriations 21
subcommittees on community colleges at least 10 days before 22
withholding funds from any community college. 23
(3) It is intended that accountability reporting for community 24
colleges will be streamlined through the center. The state budget 25
director and the center shall work to combine the reporting 26
requirements outlined in this subsection with the existing Michigan 27
community colleges verified data inventory collection cycle. All of 28
the following must be reported to the house and senate fiscal 29
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agencies and the state budget director: 1
(a) Each community college's certification of its compliance 2
with the requirements described in subsections (4) and (5). 3
(b) The reporting and certification requirements of 4
subsections (6) and (7) and section 217b. 5
(4) No later than the last first business day of November of 6
each year, each community college that receives an appropriation in 7
section 201 shall make all of the information described in 8
subdivisions (a) to (g) available through a link on its website 9
homepage, subject to subdivision (h), as follows: 10
(a) The annual operating budget and subsequent budget 11
revisions. 12
(b) A link to the most recent "Michigan Community College Data 13
Inventory Report". 14
(c) General fund revenue and expenditure projections for the 15
current fiscal year and the next fiscal year. 16
(d) A listing of all debt service obligations, detailed by 17
project, anticipated payment of each project, and total outstanding 18
debt for the current fiscal year. 19
(e) Links to all of the following for the community college: 20
(i) The current collective bargaining agreement for each 21
bargaining unit. 22
(ii) Each health care benefits plan, including, but not limited 23
to, medical, dental, vision, disability, long-term care, or any 24
other type of benefits that would constitute health care services, 25
offered to any bargaining unit or employee of the community 26
college. 27
(iii) Audits and financial reports for the most recent fiscal 28
year for which they are available. 29
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(iv) A copy of the board of trustees resolution regarding 1
compliance with best practices for the local strategic value 2
component described in section 230(2). 3
(f) A map that includes the boundaries of the community 4
college district. 5
(g) A prominent link to the financial aid website created 6
under section 260. 7
(h) For statewide consistency and public visibility, community 8
colleges shall use the icon badge provided by the department of 9
technology, management, and budget consistent with the icon badge 10
developed by the department of education for K-12 school districts. 11
It must appear on the front of each community college's homepage. 12
The size of the icon may be reduced to 150 x 150 pixels. 13
(i) A list of severance payments and the amounts of those 14
severance payments made to former employees of the community 15
college. 16
(5) No later than the last first business day of November of 17
each year, each community college that receives an appropriation in 18
section 201 shall develop, maintain, and update a "campus safety 19
information and resources" link, prominently displayed on the 20
homepage of its website, that links to a section of the community 21
college's website containing, at a minimum, all of the following 22
information: 23
(a) Emergency contact numbers for police, fire, health, and 24
other services. 25
(b) Hours, locations, telephone numbers, and email contacts 26
for campus public safety offices and title IX offices. 27
(c) A list of safety and security services provided by the 28
community college, including transportation, escort services, 29
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building surveillance, anonymous tip lines, and other available 1
security services. 2
(d) The community college's policies applicable to minors on 3
community college property. 4
(e) A directory of resources available at the community 5
college or in the surrounding community for students or employees 6
who are survivors of sexual assault or sexual abuse. 7
(f) An electronic copy of "A Resource Handbook for Campus 8
Sexual Assault Survivors, Friends and Family", published in 2018. 9
(g) Campus security policies and crime statistics pursuant to 10
the student right-to-know and campus security act, Public Law 101-11
542, 104 Stat 2381. Information must include all material prepared 12
pursuant to the public information reporting requirements under the 13
crime awareness and campus security act of 1990, title II of the 14
student right-to-know and campus security act, Public Law 101-542, 15
104 Stat 2381. 16
(6) No later than the last first business day of November of 17
each year, each community college that receives an appropriation in 18
section 201 shall report to the house and senate appropriations 19
subcommittees on community colleges, the house and senate fiscal 20
agencies, and the state budget director its annual title IX report, 21
also known as the student sexual misconduct report, issued by the 22
title IX coordinator, as required under the federal campus SaVE act 23
of 2013, Public Law 113-4, section 304, 127 Stat 54, 89-92 (2013). 24
(7) No later than the last first business day of November of 25
each year, each community college that receives an appropriation in 26
section 201 shall certify that the community college complies with 27
federal regulations under title IX, as required by the United 28
States Department of Education, including, but not limited to, the 29
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following: 1
(a) Use of medical experts that do not have an actual or 2
apparent conflict of interest. 3
(b) Issuance of title IX reports to complainants and 4
respondents that are not divergent. 5
(c) Notification of resources to each individual who reports 6
having experienced sexual assault by a member of the community 7
college. 8
Sec. 217b. (1) Each community college that receives an 9
appropriation in section 201 shall report to the center by the last 10
business day of August of each year the tuition and mandatory fees 11
paid by a full-time in-district student and a full-time out-of-12
district student as established by the community college governing 13
board for the current academic year. This report should also 14
include the annual cost of tuition and fees based on a full-time 15
course load of 30 credits. This report must also specify the amount 16
that tuition and fees have increased for the community college from 17
the prior academic year. Each community college shall also report 18
any revisions to the reported current academic year tuition and 19
mandatory fees adopted by the community college governing board to 20
the center within 15 days of being adopted. The center shall 21
provide this information and any revisions to the house and senate 22
fiscal agencies and the state budget director. 23
(2) Each community college that receives an appropriation in 24
section 201 shall certify to the state budget director by the first 25
last business day of November August of each year that its board 26
will not adopt an increase in tuition and fee rates for in-district 27
students for the academic year that is greater than the tuition 28
restraint described in this subsection. For the academic year 2025-29
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2026, 2026-2027, the tuition restraint level is equal to the 1
greater of 4.5% 4.0% or $227.00. $199.00. For the academic year 2
2026-2027, 2027-2028, the tuition restraint level is equal to the 3
greater of 4.0% 3.5% or $199.00. $179.00. It is intended that in 4
the next fiscal year, the tuition restraint rate will be adjusted 5
only for the subsequent academic year. As used in this subsection: 6
(a) "Fee" means any board-authorized fee that will be paid by 7
more than 1/2 of all in-district students at least once during 8
their enrollment at a community college. A community college 9
increasing a fee that applies to a specific subset of students or 10
courses shall provide sufficient information to prove that the 11
increase applied to that subset will not cause the increase in the 12
average amount of board-authorized total tuition and fees paid by 13
in-district students in the academic year to exceed the limit 14
established in this section. 15
(b) "Tuition and fee rate" means the average of full-time 16
rates paid by a majority of students in each class, based on an 17
unweighted average of the rates authorized by the community college 18
board and actually charged to students, deducting any uniformly 19
rebated or refunded amounts, for the 2 semesters with the highest 20
levels of full-time equated in-district enrollment during the 21
academic year. 22
(3) Community colleges that exceed the tuition and fee rate 23
cap described in subsection (2) are not eligible to receive 24
payments under section 201f for 1-time performance funding payments 25
for fiscal year 2025-2026. 2026-2027. The state budget director 26
shall implement uniform reporting requirements to ensure that a 27
community college receiving a payment under section 201f for 1-time 28
performance funding has satisfied the tuition restraint 29
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requirements of this section. The state budget director has the 1
sole authority to determine if a community college has met the 2
requirements of this section. Information reported by a community 3
college to the state budget director under this subsection must 4
also be reported to the house and senate appropriations 5
subcommittees on community colleges and the house and senate fiscal 6
agencies. 7
(4) Notwithstanding any other provision of this act, the 8
legislature may at any time adjust appropriations for a community 9
college that adopts an increase in tuition and fee rates for in-10
district students that exceeds the rate cap established in 11
subsection (2). 12
Sec. 217d. (1) By December 31, 2026, each community college 13
that receives an appropriation under section 201 must produce a 14
report detailing any increases, decreases, or other substantive 15
changes to diversity, equity, and inclusion programs made after 16
January 1, 2026. 17
(2) If the report described in subsection (1) documents a 18
change that could reduce access to a diversity, equity, or 19
inclusion program for that university's students or employees, the 20
community college shall also report other efforts, programs, or 21
resources that the community college provides that would serve to 22
mitigate any negative consequences associated with the documented 23
program reduction. 24
Sec. 217e. Not later than December 1 of each year, each 25
community college that receives an appropriation in section 201 26
shall provide a report to the house and senate appropriations 27
subcommittees on higher education, the house and senate fiscal 28
agencies, and the state budget director providing an itemized cost 29
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of attendance for full-time students attending that community 1
college for the current and previous 2 academic years. 2
Sec. 217g. (1) Subject to subsection (2), the state treasurer 3
shall reduce payments made under section 254 for any community 4
college that is an authorizing body by an amount equal to the 5
difference between the amount reported in section 217c(1)(m)(i) 6
during the previous fiscal year and 1% times the total state school 7
aid received by all public school academies authorized by the 8
authorizing body during that fiscal year. The state treasurer may 9
coordinate with the state budget office or any other state 10
department or agency to administer this section. 11
(2) If the calculation in subsection (1) would result in a net 12
payment under section 254 that is a negative number, the payment 13
under section 254 must be $0.00. 14
(3) As used in this section: 15
(a) "Authorizing body" means that term as defined in section 16
501 of the revised school code, 1976 PA 451, MCL 380.501. 17
(b) "Total state school aid" means that term as used in 18
section 502 of the revised school code, 1976 PA 451, MCL 380.502. 19
Sec. 223. (1) By January 15 of each year, the department of 20
lifelong education, advancement, and potential shall submit to the 21
state budget director, the house and senate appropriations 22
subcommittees on community colleges, and the house and senate 23
fiscal agencies a report on North American Indian tuition waivers 24
for the preceding academic year that includes, but is not limited 25
to, all of the following information: 26
(a) The number of waiver applications received and the number 27
of waiver applications approved. 28
(b) For each community college submitting information under 29
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subsection (2), all of the following: 1
(i) The number of North Native American Indian students 2
enrolled each term for the previous academic year. 3
(ii) The number of North American Indian waivers granted each 4
term, including continuing education students, and the monetary 5
value of the waivers for granted each term of the previous academic 6
year. 7
(iii) The number of North Native American Indian students who 8
receive a granted waiver for the previous academic year. 9
(iv) The number of students attending under a North American 10
Indian tuition waiver who withdrew from the college each term 11
during the previous academic year. For purposes of this 12
subparagraph, a withdrawal occurs when a student who has been 13
awarded the waiver withdraws from the institution at any point 14
during the term, regardless of enrollment in subsequent terms. 15
(v) The number of students attending under a North American 16
Indian tuition waiver who successfully transfer to a 4-year public 17
or private university, or complete a degree or certificate program, 18
separated by degree or certificate level, and the graduation rate 19
for students attending under a North American Indian tuition waiver 20
who complete a degree or certificate within 150% of the normal time 21
to complete, separated by the level of the degree or certificate. 22
(2) By January 1 of each year, a community college that 23
receives an appropriation in section 201 or a tribal institution 24
that receives funding for the North American Indian tuition waiver 25
shall provide to the department of lifelong education, advancement, 26
and potential any information necessary for preparing the report 27
described in subsection (1), using guidelines and procedures 28
developed by the department of lifelong education, advancement, and 29
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potential. 1
(3) The department of lifelong education, advancement, and 2
potential may consolidate the report required under this section 3
with the report required under section 268, but a consolidated 4
report must separately identify data for universities and data for 5
community colleges. 6
Sec. 229a. Included in the fiscal year 2025-2026 2026-2027 7
appropriations for the department of technology, management, and 8
budget are appropriations totaling $38,032,600.00 $40,398,900.00 to 9
provide funding for the state share of costs for previously 10
constructed capital projects for community colleges. Those 11
appropriations for state building authority rent represent 12
additional state general fund support for community colleges, and 13
the following is an estimate of the amount of that support to each 14
community college: 15
(a) Alpena Community College, $855,000.00. 16
(b) Bay de Noc Community College, $515,000.00. 17
(c) Delta College, $2,881,100.00.$2,881,000.00. 18
(d) Glen Oaks Community College, $380,000.00. 19
(e) Gogebic Community College, $56,000.00. 20
(f) Grand Rapids Community College, 21
$2,346,000.00.$2,430,000.00. 22
(g) Henry Ford College, $1,505,000.00. 23
(h) Jackson College, $2,044,000.00. 24
(i) Kalamazoo Valley Community College, 25
$1,942,000.00.$3,404,500.00. 26
(j) Kellogg Community College, $679,000.00. 27
(k) Kirtland Community College, $225,000.00. 28
(l) Lake Michigan College, $966,000.00. 29
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(m) Lansing Community College, $757,000.00. 1
(n) Macomb Community College, $4,682,200.00. 2
(o) Mid Michigan Community College, $1,615,000.00. 3
(p) Monroe County Community College, 4
$1,540,000.00.$2,359,900.00. 5
(q) Montcalm Community College, $446,000.00. 6
(r) C.S. Mott Community College, $3,103,000.00. 7
(s) Muskegon Community College, $982,000.00. 8
(t) North Central Michigan College, $646,000.00. 9
(u) Northwestern Michigan College, $1,787,000.00. 10
(v) Oakland Community College, $0.00. 11
(w) Schoolcraft College, $2,232,000.00. 12
(x) Southwestern Michigan College, $822,500.00. 13
(y) St. Clair County Community College, $718,000.00. 14
(z) Washtenaw Community College, $1,676,000.00. 15
(aa) Wayne County Community College, $1,895,800.00. 16
(bb) West Shore Community College, $736,000.00. 17
Sec. 230. (1) Subject to subsection (4), money included in the 18
appropriations for community college operations under section 201 19
for performance funding and allocated under section 201f for 1-time 20
performance funding payments is distributed based on the following 21
formula: 22
(a) Allocated proportionate to fiscal year 2024-2025 2025-2026 23
base appropriations, 30%. 24
(b) Based on a weighted student contact hour formula as 25
provided for in the 2016 recommendations of the performance 26
indicators task force, 30%. 27
(c) Based on the performance improvement as provided for in 28
the 2016 recommendations of the performance indicators task force 29
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and based on data provided by the center, 10%. 1
(d) Based on the performance completion number as provided for 2
in the 2016 recommendations of the performance indicators task 3
force, 10%. 4
(e) Based on the performance completion rate as provided for 5
in the 2016 recommendations of the performance indicators task 6
force and based on data provided by the center, 10%. 7
(f) Based on administrative costs, 5%. 8
(g) Based on the local strategic value component, as developed 9
in cooperation with the Michigan Community College Association and 10
described in subsection (2), 5%. 11
(2) Money included in the appropriations for community college 12
operations under section 201(2) for local strategic value is 13
allocated only to each community college that certifies to the 14
state budget director, through a board of trustees resolution on or 15
before October 15, 2025, 2026, that the college has met 4 out of 5 16
best practices listed in each category described in subsection (3). 17
The resolution must provide specifics as to how the community 18
college meets each best practice measure within each category. One-19
third of funding available under the strategic value component is 20
allocated to each category described in subsection (3). Amounts 21
distributed under local strategic value must be on a proportionate 22
basis to each college's fiscal year 2024-2025 2025-2026 operations 23
funding. Payments to community colleges that qualify for local 24
strategic value funding must be distributed with the November 25
installment payment described in section 206. 26
(3) For purposes of subsection (2), the following categories 27
of best practices reflect functional activities of community 28
colleges that have strategic value to the local communities and 29
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regional economies: 1
(a) For Category A, economic development and business or 2
industry partnerships, the following: 3
(i) The community college has active partnerships with local 4
employers including hospitals and health care providers. 5
(ii) The community college provides customized on-site training 6
for area companies, employees, or both. 7
(iii) The community college supports entrepreneurship through a 8
small business assistance center or other training or consulting 9
activities targeted toward small businesses. 10
(iv) The community college supports technological advancement 11
through industry partnerships, incubation activities, or operation 12
of a Michigan technical education center or other advanced 13
technology center. 14
(v) The community college has active partnerships with local 15
or regional workforce and economic development agencies. 16
(b) For Category B, educational partnerships, the following: 17
(i) The community college has active partnerships with regional 18
high schools, intermediate school districts, and career-tech 19
centers to provide instruction through dual enrollment, concurrent 20
enrollment, direct credit, middle college, or academy programs. 21
(ii) The community college hosts, sponsors, or participates in 22
enrichment programs for area K-12 students, such as college days, 23
summer or after-school programming, or Science Olympiad. 24
(iii) The community college provides, supports, or participates 25
in programming to promote successful transitions to college for 26
traditional age students, including grant programs such as talent 27
search, upward bound, or other activities to promote college 28
readiness in area high schools and community centers. 29
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(iv) The community college provides, supports, or participates 1
in programming to promote successful transitions to college for new 2
or reentering adult students, such as adult basic education, a high 3
school equivalency test preparation program and testing, or 4
recruiting, advising, or orientation activities specific to adults. 5
As used in this subparagraph, "high school equivalency test 6
preparation program" means that term as defined in section 4. 7
(v) The community college has active partnerships with 8
regional 4-year colleges and universities to promote successful 9
transfer, such as articulation, 2+2, or reverse transfer agreements 10
or operation of a university center. 11
(c) For Category C, community services, the following: 12
(i) The community college provides continuing education 13
programming for leisure, wellness, personal enrichment, or 14
professional development. 15
(ii) The community college operates or sponsors opportunities 16
for community members to engage in activities that promote leisure, 17
wellness, cultural or personal enrichment such as community sports 18
teams, theater or musical ensembles, or artist guilds. 19
(iii) The community college operates public facilities to 20
promote cultural, educational, or personal enrichment for community 21
members, such as libraries, computer labs, performing arts centers, 22
museums, art galleries, or television or radio stations. 23
(iv) The community college operates public facilities to 24
promote leisure or wellness activities for community members, 25
including gymnasiums, athletic fields, tennis courts, fitness 26
centers, hiking or biking trails, or natural areas. 27
(v) The community college promotes, sponsors, or hosts 28
community service activities for students, staff, or community 29
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members. 1
(4) Payments for performance funding under section 201 and for 2
1-time performance funding payments under section 201f must be made 3
to a community college only if that community college actively 4
participates in the Michigan Transfer Network sponsored by the 5
Michigan Association of Collegiate Registrars and Admissions 6
Officers and submits timely updates, including updated course 7
equivalencies at least every 6 months, to the Michigan Transfer 8
Network. The state budget director shall determine if a community 9
college has not satisfied this requirement. The state budget 10
director may withhold payments for performance funding under 11
section 201 and 1-time performance funding under section 201f until 12
a community college is in compliance with this subsection. 13
Sec. 236. (1) Subject to the conditions set forth in this 14
article, the amounts listed in this section are appropriated for 15
higher education for the fiscal year ending September 30, 2026, 16
2027, from the funds indicated in this section. The following is a 17
summary of the appropriations in this section and sections 236d , 18
236e, and 236j: 19
(a) The gross appropriation is $2,336,912,000.00. 20
$2,590,132,800.00. After deducting total interdepartmental grants 21
and intradepartmental transfers in the amount of $0.00, the 22
adjusted gross appropriation is $2,336,912,000.00. 23
$2,590,132,800.00. 24
(b) The sources of the adjusted gross appropriation described 25
in subdivision (a) are as follows: 26
(i) Total federal revenues, $3,200,000.00. 27
(ii) Total local revenues, $0.00. 28
(iii) Total private revenues, $0.00. 29
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(iv) Total other state restricted revenues, $850,768,300.00. 1
$1,171,678,600.00. 2
(v) State general fund/general purpose money, 3
$1,482,943,700.00.$1,415,254,200.00. 4
(c) The totals and subtotals reflected in subdivisions (a) and 5
(b) do not include amounts appropriated under subsection (7)(d) or 6
(8)(b) $300,000,000.00 of the appropriation under subsection (8)(b) 7
to avoid duplicating totals of amounts appropriated in this section 8
and section 236j. 9
(2) Amounts appropriated for public universities are as 10
follows: 11
(a) The appropriation for Central Michigan University is 12
$99,466,100.00, $95,226,900.00 $99,759,800.00, $97,785,700.00 for 13
operations, $0.00 for operations increase, $2,558,800.00 for MPSERS 14
support payment, and $1,680,400.00 $1,974,100.00 for costs incurred 15
under the North American Indian tuition waiver. 16
(b) The appropriation for Eastern Michigan University is 17
$86,649,200.00, $83,979,800.00 $86,660,200.00, $86,236,300.00 for 18
operations, $0.00 for operations increase, $2,256,500.00 for MPSERS 19
support payment, and $412,900.00 $423,900.00 for costs incurred 20
under the North American Indian tuition waiver. 21
(c) The appropriation for Ferris State University is 22
$62,221,900.00, $59,816,300.00 $62,195,100.00, $61,423,600.00 for 23
operations, $0.00 for operations increase, $1,607,300.00 for MPSERS 24
support payment, and $798,300.00 $771,500.00 for costs incurred 25
under the North American Indian tuition waiver. 26
(d) The appropriation for Grand Valley State University is 27
$98,772,000.00, $98,788,400.00, $97,552,900.00 for operations, 28
$0.00 for operations increase, $0.00 for MPSERS support payment, 29
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and $1,219,100.00 $1,235,500.00 for costs incurred under the North 1
American Indian tuition waiver. 2
(e) The appropriation for Lake Superior State University is 3
$16,301,400.00, $14,465,600.00 $16,419,200.00, $14,854,300.00 for 4
operations, $0.00 for operations increase, $388,700.00 for MPSERS 5
support payment, and $1,447,100.00 $1,564,900.00 for costs incurred 6
under the North American Indian tuition waiver. 7
(f) The appropriation for Michigan State University is 8
$396,845,300.00, $396,750,000.00, $321,516,900.00 for operations, 9
$0.00 for operations increase, $0.00 for MPSERS support payment, 10
$2,508,800.00 $2,413,500.00 for costs incurred under the North 11
American Indian tuition waiver, $39,096,200.00 for MSU 12
AgBioResearch, and $33,723,400.00 for MSU Extension. 13
(g) The appropriation for Michigan Technological University is 14
$56,659,000.00, $54,463,700.00 $56,727,800.00, $55,927,100.00 for 15
operations, $0.00 for operations increase, $1,463,400.00 for MPSERS 16
support payment, and $731,900.00 $800,700.00 for costs incurred 17
under the North American Indian tuition waiver. 18
(h) The appropriation for Northern Michigan University is 19
$55,688,200.00, $52,850,300.00 $55,925,000.00, $54,270,400.00 for 20
operations, $0.00 for operations increase, $1,420,100.00 for MPSERS 21
support payment, and $1,417,800.00 $1,654,600.00 for costs incurred 22
under the North American Indian tuition waiver. 23
(i) The appropriation for Oakland University is 24
$73,361,600.00, $73,414,700.00, $73,036,400.00 for operations, 25
$0.00 for operations increase, $0.00 for MPSERS support payment, 26
and $325,200.00 $378,300.00 for costs incurred under the North 27
American Indian tuition waiver. 28
(j) The appropriation for Saginaw Valley State University is 29
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$34,379,000.00, $34,436,800.00, $34,196,000.00 for operations, 1
$0.00 for operations increase, $0.00 for MPSERS support payment, 2
and $183,000.00 $240,800.00 for costs incurred under the North 3
American Indian tuition waiver. 4
(k) The appropriation for University of Michigan – Ann Arbor 5
is $362,507,900.00, $362,353,400.00, $360,607,300.00 for 6
operations, $0.00 for operations increase, $0.00 for MPSERS support 7
payment, and $1,900,600.00 $1,746,100.00 for costs incurred under 8
the North American Indian tuition waiver. 9
(l) The appropriation for University of Michigan – Dearborn is 10
$31,708,000.00, $31,762,500.00, $31,513,700.00 for operations, 11
$0.00 for operations increase, $0.00 for MPSERS support payment, 12
and $194,300.00 $248,800.00 for costs incurred under the North 13
American Indian tuition waiver. 14
(m) The appropriation for University of Michigan – Flint is 15
$26,884,600.00, $26,941,300.00, $26,403,700.00 for operations, 16
$0.00 for operations increase, $0.00 for MPSERS support payment, 17
and $480,900.00 $537,600.00 for costs incurred under the North 18
American Indian tuition waiver. 19
(n) The appropriation for Wayne State University is 20
$227,787,300.00, $227,908,900.00, $227,310,200.00 for operations, 21
$0.00 for operations increase, $0.00 for MPSERS support payment, 22
and $477,100.00 $598,700.00 for costs incurred under the North 23
American Indian tuition waiver. 24
(o) The appropriation for Western Michigan University is 25
$125,246,700.00, $121,231,800.00 $125,265,800.00, $124,489,300.00 26
for operations, $0.00 for operations increase, $3,257,500.00 for 27
MPSERS support payment, and $757,400.00 $776,500.00 for costs 28
incurred under the North American Indian tuition waiver. 29
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(3) The amount appropriated in subsection (2) for public 1
universities is $1,754,478,200.00, $1,755,308,900.00, appropriated 2
from the following: 3
(a) State school aid fund, $643,168,300.00. 4
(b) State general fund/general purpose money, 5
$1,111,309,900.00.$1,112,140,600.00. 6
(4) The amount appropriated for Michigan public school 7
employees' retirement system reimbursement is $0.00. 8
(5) The amount appropriated for state and regional programs is 9
$322,100.00, appropriated from general fund/general purpose money 10
and allocated as follows: 11
(a) Higher education database modernization and conversion, 12
$200,000.00. 13
(b) Midwestern Higher Education Compact, $122,100.00. 14
(6) The amount appropriated for the Martin Luther King, Jr. - 15
Cesar Chavez Dolores Huerta – Morris Hood Jr. - Rosa Parks program 16
is $2,691,500.00, appropriated from general fund/general purpose 17
money and allocated as follows: 18
(a) Select student support services, $1,956,100.00. 19
(b) Michigan college/university partnership program, 20
$586,800.00. 21
(c) Morris Hood, Jr. educator development program, 22
$148,600.00. 23
(7) Subject to subsection (8), the amount appropriated for 24
grants and financial aid is $469,500,000.00, $760,300,000.00, 25
allocated as follows: 26
(a) Tuition incentive program, $122,300,000.00. 27
$156,100,000.00. 28
(b) Children of veterans and officer's survivor tuition grant 29
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programs, $2,000,000.00. 1
(c) Project GEAR-UP, $3,200,000.00. 2
(d) Michigan achievement scholarships, $300,000,000.00. 3
$532,000,000.00. From this amount, up to $10,000,000.00 may be used 4
to award skills scholarships under section 248a. 5
(e) Michigan reconnect, $42,000,000.00.$67,000,000.00. 6
(8) The money appropriated in subsection (7) for grants and 7
financial aid is appropriated from the following: 8
(a) Federal revenues under the United States Department of 9
Education, Office of Elementary and Secondary Education, GEAR-UP 10
program, $3,200,000.00. 11
(b) Postsecondary scholarship fund, $300,000,000.00. 12
$532,000,000.00. 13
(c) School aid fund, $25,000,000.00. 14
(d) (c) State general fund/general purpose money, 15
$166,300,000.00.$200,100,000.00. 16
(e) (d) At the close of the fiscal year, state general 17
fund/general purpose money appropriated in subsection (7) for 18
grants and scholarships that is unspent must be deposited into the 19
postsecondary scholarship fund created in section 236j. 20
(9) For fiscal year 2025-2026 2026-2027 only, in addition to 21
the allocation under subsection (4), from the appropriations 22
described in subsection (1), there is allocated an amount not to 23
exceed $7,600,000.00 $1,750,000.00 for payments to participating 24
public universities, appropriated from the state school aid fund. A 25
public university that receives money under this subsection shall 26
use that money solely for the purpose of offsetting the normal cost 27
contribution rate. As used in this subsection, "participating 28
public universities" means public universities that are a reporting 29
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unit of the Michigan public school employees' retirement system 1
under the public school employees retirement act of 1979, 1980 PA 2
300, MCL 38.1301 to 38.1437, and that pay contributions to the 3
Michigan public school employees' retirement system for the state 4
fiscal year. 5
(10) It is the intent of the legislature that $43,500,000.00 6
of the general fund/general purpose money appropriated in 7
subsections (7)(a) and (8)(d) for the tuition incentive program is 8
for the fiscal year 2026-2027 only. 9
Sec. 236c. In addition to the funds appropriated for fiscal 10
year 2025-2026 2026-2027 in section 236, appropriations to the 11
department of technology, management, and budget in the act 12
providing general appropriations for fiscal year 2025-2026 2026-13
2027 for state building authority rent, totaling an estimated 14
$142,153,900.00, $153,218,900.00, provide funding for the state 15
share of costs for previously constructed capital projects for 16
state universities. These appropriations for state building 17
authority rent represent additional state general fund support 18
provided to public universities, and the following is an estimate 19
of the amount of that support to each public university: 20
(a) Central Michigan University, $12,914,000.00. 21
(b) Eastern Michigan University, $6,022,000.00. $8,272,000.00. 22
(c) Ferris State University, $9,546,000.00. 23
(d) Grand Valley State University, $8,614,000.00. 24
$10,864,000.00. 25
(e) Lake Superior State University, $2,229,000.00. 26
(f) Michigan State University, $16,598,000.00. 27
(g) Michigan Technological University, $5,521,000.00. 28
(h) Northern Michigan University, $9,735,900.00. 29
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(i) Oakland University, $11,245,000.00.$13,310,000.00. 1
(j) Saginaw Valley State University, $7,820,000.00. 2
(k) University of Michigan - Ann Arbor, $14,068,000.00. 3
(l) University of Michigan - Dearborn, $10,725,000.00. 4
(m) University of Michigan - Flint, $6,057,000.00. 5
$8,307,000.00. 6
(n) Wayne State University, $10,072,000.00.$12,322,000.00. 7
(o) Western Michigan University, $10,987,000.00. 8
Sec. 236d. (1) In addition to the funds appropriated under 9
section 232(2) for university operations, for fiscal year 2025-2026 10
2026-2027 only, there is appropriated an amount not to exceed 11
$50,114,100.00 $69,760,300.00 from the state general fund/general 12
purpose money school aid fund for 1-time operations increase 13
payments. These funds are intended to be used for the same purposes 14
as the funds appropriated under section 236(2) for university 15
operations. 16
(2) From the amount appropriated under subsection (1), subject 17
to sections 241a, 241b, 241c, 241e, and 244, each university is 18
allocated the following: 19
(a) Central Michigan University, $2,885,000.00.$3,920,600.00. 20
(b) Eastern Michigan University, $2,544,200.00.$3,457,500.00. 21
(c) Ferris State University, $1,812,200.00.$2,462,700.00. 22
(d) Grand Valley State University, $2,955,400.00. 23
$3,911,200.00. 24
(e) Lake Superior State University, $438,300.00.$595,600.00. 25
(f) Michigan State University, $9,740,500.00.$12,890,700.00. 26
(g) Michigan Technological University, 27
$1,650,000.00.$2,242,300.00. 28
(h) Northern Michigan University, $1,601,100.00.$2,175,900.00. 29
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(i) Oakland University, $2,212,700.00.$2,928,300.00. 1
(j) Saginaw Valley State University, 2
$1,036,000.00.$1,371,000.00. 3
(k) University of Michigan – Ann Arbor, 4
$10,924,800.00.$14,458,000.00. 5
(l) University of Michigan – Dearborn, 6
$954,700.00.$1,263,500.00. 7
(m) University of Michigan – Flint, $799,900.00.$1,058,600.00. 8
(n) Wayne State University, $6,886,500.00.$9,113,600.00. 9
(o) Western Michigan University, $3,672,800.00.$4,991,200.00. 10
(3) In addition to the funds appropriated in section 236(2) 11
for MSU AgBioResearch, for fiscal year 2025-2026 2026-2027 only, 12
there is appropriated an amount not to exceed $1,184,400.00 13
$1,567,500.00 from the state general fund/general purpose money for 14
MSU AgBioResearch. 15
(4) In addition to the funds appropriated in section 236(2) 16
for MSU Extension, for fiscal year 2025-2026 2026-2027 only, there 17
is appropriated an amount not to exceed $1,021,700.00 $1,352,100.00 18
from the state general fund/general purpose money for MSU 19
Extension. 20
Sec. 236j. (1) The postsecondary scholarship fund is created 21
in the department of treasury for the purpose of providing 22
scholarship awards to eligible students who attend eligible 23
postsecondary educational institutions in this state, as provided 24
in subsection (5). 25
(2) The state treasurer may receive money or other assets from 26
any source for deposit into the postsecondary scholarship fund. The 27
state treasurer shall direct the investment of the postsecondary 28
scholarship fund. The state treasurer shall credit to the 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
postsecondary scholarship fund interest and earnings from 1
postsecondary scholarship fund investments. 2
(3) Money in the postsecondary scholarship fund at the close 3
of the fiscal year must remain in the postsecondary scholarship 4
fund and not lapse to the general fund. 5
(4) The department of treasury is the administrator of the 6
postsecondary scholarship fund for auditing purposes. 7
(5) Money must be expended from the postsecondary scholarship 8
fund only for the purpose of providing Michigan achievement 9
scholarship awards to eligible students who attend eligible 10
postsecondary educational institutions in this state and for other 11
purposes described in this section. From Subject to section 236k, 12
from the funds appropriated in section 236(7) for the Michigan 13
achievement scholarship, the department of lifelong education, 14
advancement, and potential may use up to $10,000,000.00 15
$5,000,000.00 annually for the purposes of outreach programs to 16
raise awareness of the Michigan achievement scholarship and other 17
state scholarship programs allocated in section 236(7). The 18
department of lifelong education, advancement, and potential shall 19
ensure that state scholarships are well publicized and that high 20
school students are provided information on the availability of 21
financial aid. The department of lifelong education, advancement, 22
and potential may receive and expend funds received from outside 23
sources for scholarships, marketing, or other purposes related to 24
Michigan state scholarships. The department of lifelong education, 25
advancement, and potential shall provide the necessary funding and 26
staff to fully operate the programs. 27
(6) For the fiscal year ending September 30, 2026, 2027, 28
$300,000,000.00 $200,000,000.00 of ongoing funding is deposited 29
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into the postsecondary scholarship fund from the following: 1
(a) State state school aid fund. , $200,000,000.00. 2
(b) State general fund/general purpose money, $100,000,000.00. 3
(7) In addition to the deposit under subsection (6), for the 4
fiscal year ending September 30, 2027 only, $100,000,000.00 is 5
deposited into the postsecondary scholarship fund from state 6
general fund/general purpose money. 7
(8) (7) It is the intent of the legislature that the 8
postsecondary scholarship fund serves as the primary funding source 9
of the Michigan achievement scholarship. To ensure the Michigan 10
achievement scholarship provides ongoing supports for students, it 11
is the intent of the legislature to increase annual deposits into 12
the postsecondary scholarship fund until the fully implemented 13
costs of the Michigan achievement scholarship are deposited 14
annually into the postsecondary scholarship fund. 15
(9) (8) In addition to the appropriations in section 236, if 16
the amount of general fund money state funds allocated in section 17
236(7)(a), (b), (d), or (e) is not sufficient to fully fund 1 or 18
more of those awards, there is appropriated from the postsecondary 19
scholarship fund the amount necessary to fully fund those awards. 20
The state budget director must determine if money is appropriated 21
from the postsecondary scholarship fund under this subsection and 22
shall provide written notification to the house and senate 23
appropriations subcommittee on higher education and the house and 24
senate fiscal agencies prior to any additional appropriation 25
described in this subsection. 26
(9) In addition to the deposit to the postsecondary 27
scholarship fund described in subsection (6), for the fiscal year 28
ending September 30, 2025 only, an amount not to exceed 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
$80,000,000.00 from the unspent and unreserved state school aid 1
fund balances appropriated under section 11, as recorded as part of 2
the state book-closing process for the 2024-2025 fiscal year, is 3
deposited into the postsecondary scholarship fund. 4
Sec. 236k. From the amount described under section 236j(5) for 5
marketing of the Michigan achievement scholarship and other state 6
scholarship programs, $1,000,000.00 must be allocated for the FAFSA 7
completion ticket to tuition incentive. The department of lifelong 8
education, advancement, and potential shall use funds described 9
under this section to run a promotional activity to promote 10
completing the Free Application for Federal Student Aid (FAFSA) for 11
the first time consistent with the promotional-activity exception 12
provided for in section 372(2) of the Michigan penal code, 1931 PA 13
328, MCL 750.372. The promotional activity must offer prize funds 14
that are available to a number, chosen by the department, of 15
randomly selected Michigan residents who satisfactorily demonstrate 16
to the department that they have completed the FAFSA for the first 17
time. 18
Sec. 236s. (1) Not later than Within 30 days after of the 19
enactment of the an amendatory act that added this section, to this 20
article, the legislature house and senate shall provide to the 21
responsible entity and the state budget director office a jointly 22
agreed upon list of legislatively directed spending items , which 23
may be referred to in this section as grants or direct 24
appropriation grants, funded under the amendatory act that added 25
this section consistent with house or senate rules and this 26
section. funded by the amendatory act. The list must include all 27
information and documents pertaining to the funded items as 28
publicly disclosed in accordance with house or senate rules and 29
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this section. section 364 and 364a of the management and budget 1
act, 1984 PA 431, MCL 18.1364 and 18.1634a. As used in this 2
subsection, "legislatively directed spending item" means that term 3
as defined in section 364 of the management and budget act, 1984 PA 4
431, MCL 18.1364. 5
(2) Notwithstanding any other conditions or requirements for 6
direct appropriation grants, the responsible entity shall perform, 7
at a minimum, at least all of the following activities to 8
administer the grants described in subsection (1): 9
(a) Establish a process to review, complete, and execute a 10
grant agreement with a grant recipient. The responsible entity 11
shall not execute a grant agreement unless all necessary 12
documentation has been submitted and reviewed. 13
(b) Verify to the extent possible that a grant recipient is a 14
not-for-profit entity and will use funds as publicly disclosed and 15
for a public purpose that serves the economic prosperity, health, 16
safety, or general welfare of the residents of this state. 17
(c) Review and verify all necessary information to ensure the 18
grant recipient is reasonably able to execute the grant agreement, 19
perform its fiduciary duty, and comply with all applicable state 20
and federal statutes. The responsible entity may deduct the cost of 21
background checks and any other efforts performed as part of this 22
verification from the amount of the designated grant award. 23
(d) Disburse the grant money per the grant disbursement 24
schedule in the executed grant agreement on a reimbursement basis 25
after the grantee has provided sufficient documentation, as 26
determined by the responsible entity, to verify that expenditures 27
were made in accordance with the project purpose. 28
(e) If the state budget director determines that information 29
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provided by the grantee does not meet the disclosure requirements, 1
that the grant will be used to pay a tax lien, delinquent tax, or 2
other obligation owed to this state, or that the grant will create 3
a conflict of interest, the responsible entity shall not release 4
the grant money to the grantee. Money that is not released under 5
this subdivision lapses at the end of the fiscal year. There is not 6
a conflict of interest if the sponsoring legislator certifies that 7
the sponsoring legislator's immediate family members, legislative 8
staff members that have worked for the sponsoring legislator within 9
the past 2 years, and the sponsoring legislator do not have a 10
direct or indirect pecuniary interest in the legislatively directed 11
spending item. 12
(3) An executed grant agreement under this section between the 13
responsible entity and a grant recipient must include at least all 14
of the following: 15
(a) All necessary identifying information for the grant 16
recipient, including any tax and financial information necessary 17
for the responsible entity to administer grant money under this 18
section. 19
(b) A description of the project for which the grant money 20
will be expended, including tentative timelines and the estimated 21
budget. Project budget must include how all grant money will be 22
used and must indicate if any grant money will be provided to a 23
third party or subrecipient. The responsible entity shall not 24
reimburse expenditures that are outside of the project purpose, as 25
stated in the executed grant agreement, from appropriations under 26
the amendatory act that added this section. The grantee shall 27
return to the state treasury any interest in excess of $1,000.00 28
earned on the grant money while unexpended and in possession of the 29
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grantee. 1
(c) Unless otherwise specified in the responsible entity's 2
policy, a requirement that funds appropriated for the grants 3
described in subsection (1) may be used only for expenditures that 4
occur on or after the effective date of the amendatory act that 5
added this section. 6
(d) A requirement for reporting by the grant recipient to the 7
responsible entity and the legislative sponsor that provides the 8
status of the project and an accounting of all money expended by 9
the grant recipient, as determined by the responsible entity. 10
(e) A clawback provision that allows the department of 11
treasury to recoup or otherwise collect any grant money that is 12
declined, unspent, or otherwise misused. 13
(f) The documents publicly disclosed under subsection (1). 14
(4) If appropriate to improve the administration or oversight 15
of a grant described in subsection (1), the responsible entity may 16
adopt a memorandum of understanding with another state department 17
to perform the required duties under this section. 18
(5) A grant recipient shall respond to all reasonable 19
information requests from the responsible entity related to grant 20
expenditures and retain grant records for not less than 7 years, 21
and the grant may be subject to monitoring, site visits, and audit 22
as determined by the responsible entity. The grant agreement 23
required under this section must include signed assurance by the 24
chief executive officer or other executive officer of the grant 25
recipient authorized to bind the grant recipient that the 26
requirements of this subsection will be met. 27
(6) The grant recipient shall expend all grant money awarded 28
and complete all projects not later than September 30, 2030. If at 29
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that time any unexpended money remains, the grant recipient shall 1
return that money to the state treasury. If a grant recipient does 2
not provide information sufficient to execute a grant agreement not 3
later than June 1, 2026, the responsible entity shall return money 4
associated with the grant to the state treasury. 5
(7) Any grant money that is awarded to a responsible entity is 6
appropriated in that responsible entity for the purpose of the 7
intended grant. 8
(2) (8) Except as otherwise provided in subsection (9), 9
beginning March 15 of the current fiscal year, the responsible 10
entity In accordance with section 364(4) of the management and 11
budget act, 1984 PA 431, MCL 18.364(4), the department or agency 12
administering the grant shall post a report in a publicly 13
accessible location on its website beginning March 15 of the 14
current fiscal year. The report must list the grant recipient, 15
project purpose, and location of the project for each grant 16
described in subsection (1), the status of money allocated and 17
disbursed under the grant agreement, and the legislative sponsor, 18
if applicable. The responsible entity The department or agency 19
shall update the report and post the an updated report in a 20
publicly accessible location on its website not later than June 15 21
of the current fiscal year and again not later than September 15 of 22
the current fiscal year. The responsible entity department or 23
agency shall include in the report the most comprehensive 24
information the responsible entity department or agency has 25
available at the time of posting for grants awarded. 26
(9) If the state budget office determines that it is more 27
efficient for the state budget office to compile all affected 28
responsible entities' information and post a report of the compiled 29
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information rather than the report required under subsection (8) 1
being posted by individual responsible entities, the state budget 2
office may compile that information across all affected responsible 3
entities and other state departments and post the compiled report 4
and any updates on the same time schedule as identified in 5
subsection (8). 6
(10) If the responsible entity reasonably determines that the 7
money allocated for an executed grant agreement under this section 8
was misused or that use of the money was misrepresented by the 9
grant recipient, the responsible entity shall not award any 10
additional funds under the executed grant agreement and shall refer 11
the grant for review following internal audit protocols, which may 12
include referral for criminal investigation. 13
(11) As used in this section, "responsible entity" means the 14
department of lifelong education, advancement, and potential, a 15
public university, or other person that administers a grant under 16
this article. 17
Sec. 241. Subject to sections 241a, 241b, 241c, 241e, 241h, 18
and 244, the funds appropriated in sections 236 and 236d to public 19
universities must be paid out of the state treasury and distributed 20
by the state treasurer to the respective institutions in 11 equal 21
monthly installments on the sixteenth of each month, or the next 22
succeeding business day, beginning with October 16, 2025. 2026. 23
Except for Wayne State University, each institution shall accrue 24
its July and August 2026 2027 payments to its institutional fiscal 25
year ending June 30, 2026.2027. 26
Sec. 241a. (1) All public universities shall submit higher 27
education institutional data inventory (HEIDI) data and associated 28
financial aid program information requested by and in a manner 29
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prescribed by the state budget director. For public universities 1
with fiscal years ending June 30, these data must be submitted to 2
the state budget director by October 15 of each fiscal year. Public 3
universities with a fiscal year ending September 30 shall submit 4
preliminary HEIDI data by November 15 and final data by December 5
15. 6
(2) It is intended that accountability reporting for public 7
universities will be streamlined through HEIDI. The state budget 8
director and the center will work to combine the reporting 9
requirements outlined in this subsection with the existing HEIDI 10
collection cycle. All of the following must be reported to the 11
house and senate fiscal agencies and the state budget director: 12
(a) Each public university's certification of its compliance 13
with the requirements described in subsections (4), and (5), and 14
(6). 15
(b) The reporting requirements described in sections 241b and 16
241c. 17
(3) If a public university fails to submit HEIDI data and 18
associated financial aid program information reporting in sections 19
241a, 241b, 241c, and 244 in accordance with the required reporting 20
schedule, the state treasurer budget director may withhold the 21
monthly operations installments under section sections 236 and 236d 22
to the public university until those data reports are submitted. If 23
a public university does not comply with all of the requirements 24
described in subsections (4) and (5) sections 241a, 241b, 241c, and 25
244 by the end of the fiscal year, the public university forfeits 26
the amount withheld. The state budget director shall notify the 27
chairs of the house and senate appropriations subcommittees on 28
higher education at least 10 days before withholding funds from any 29
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public university. 1
(4) No later than the first business day of November 1 of each 2
year, a public university shall maintain a public transparency 3
website available through a link on its website homepage. The 4
website must include all of the following concerning the public 5
university: 6
(a) The annual operating budget and subsequent budget 7
revisions. 8
(b) A summary of current expenditures for the most recent 9
fiscal year for which they are available, expressed as pie charts 10
in the following 2 categories: 11
(i) A chart of personnel expenditures, broken into the 12
following subcategories: 13
(A) Earnings and wages. 14
(B) Employee benefit costs, including, but not limited to, 15
medical, dental, vision, life, disability, and long-term care 16
benefits. 17
(C) Retirement benefit costs. 18
(D) All other personnel costs. 19
(ii) A chart of all current expenditures the public university 20
reported as part of its higher education institutional data 21
inventory data under subsection (1), broken into the same 22
subcategories in which it reported those data. 23
(c) Links to all of the following for the public university: 24
(i) The current collective bargaining agreement for each 25
bargaining unit. 26
(ii) Each health care benefits plan, including, but not limited 27
to, medical, dental, vision, disability, long-term care, or any 28
other type of benefits that would constitute health care services, 29
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offered to any bargaining unit or employee of the public 1
university. 2
(iii) Audits and financial reports for the most recent fiscal 3
year for which they are available. 4
(d) General fund revenue and expenditure projections for the 5
current fiscal year and the next fiscal year. 6
(e) A listing of all debt service obligations, detailed by 7
project, anticipated fiscal year payment for each project, and 8
total outstanding debt for the current fiscal year. 9
(f) The institution's policy regarding the transferability of 10
core college courses between community colleges and the public 11
university. 12
(g) A listing of all community colleges that have entered into 13
reverse transfer agreements with the public university. 14
(h) A dashboard or report card demonstrating the public 15
university's performance in several "best practice" measures. The 16
dashboard or report card must include at least all of the following 17
for the 3 most recent academic years for which the data are 18
available: 19
(i) Enrollment. 20
(ii) Student retention rate. 21
(iii) Six-year graduation rates. 22
(iv) Number of Pell grant recipients and graduating Pell grant 23
recipients. 24
(v) Geographic origination of students, categorized as in-25
state, out-of-state, and international. 26
(vi) Faculty to student ratios and total public university 27
employee to student ratios. 28
(vii) Teaching load by faculty classification. 29
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(viii) Graduation outcome rates, including employment and 1
continuing education. 2
(i) An icon badge that provides statewide consistency and 3
public visibility. For this purpose, public universities shall use 4
the icon badge provided by the department of technology, 5
management, and budget consistent with the icon badge developed by 6
the department of education for K-12 school districts. It must 7
appear on the front of each public university's homepage. The size 8
of the icon may be reduced to 150 x 150 pixels. The font size and 9
style for this reporting must be consistent with other documents on 10
each public university's website. 11
(j) A collection and report of the number and percentage of 12
all enrolled students who complete the Free Application for Federal 13
Student Aid, broken out by undergraduate and graduate/professional 14
classifications, reported to the center and posted on its website 15
under the budget transparency icon badge. 16
(k) The name of the current president, the names of the city 17
and state where the president currently resides, and the 18
president's annual salary. 19
(l) A list of severance payments and the amounts of those 20
payments made to former employees of the university. 21
(5) No later than the first business day of November 1 of each 22
year, a public university shall develop, maintain, and update a 23
"campus safety information and resources" link, prominently 24
displayed on the homepage of its website, to a section of its 25
website containing, at a minimum, all of the following information: 26
(a) Emergency contact numbers for police, fire, health, and 27
other services. 28
(b) Hours, locations, telephone numbers, and email contacts 29
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for campus public safety offices and title IX offices. 1
(c) A list of safety and security services provided by the 2
public university, including transportation, escort services, 3
building surveillance, anonymous tip lines, and other available 4
security services. 5
(d) The public university's policies applicable to minors on 6
university property. 7
(e) A directory of resources available at the public 8
university or surrounding community for students or employees who 9
are survivors of sexual assault or sexual abuse. 10
(f) An electronic copy of "A Resource Handbook for Campus 11
Sexual Assault Survivors, Friends and Family", published in 2018. 12
(g) Campus security policies and crime statistics pursuant to 13
the student right-to-know and campus security act, Public Law 101-14
542, 104 Stat 2381. Information must include all material prepared 15
pursuant to the public information reporting requirements under the 16
crime awareness and campus security act of 1990, title II of the 17
student right-to-know and campus security act, Public Law 101-542, 18
104 Stat 2381. 19
(6) Each public university shall certify to the state budget 20
director by the first business day of November of each year that it 21
complies with all of the following requirements: 22
(a) The public university participates in reverse transfer 23
agreements described in section 286 with at least 3 community 24
colleges in this state. 25
(b) The public university does not and will not apply any of 26
the following criteria when determining whether credits earned 27
outside the public university by a student count toward a degree or 28
certificate program offered by the public university: 29
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(i) Whether the credits were earned in a dual enrollment 1
program that counted the credits toward high school graduation 2
requirements. 3
(ii) Whether the credits were earned in a course that was 4
delivered in a high school classroom, community college classroom 5
or campus, or another location. 6
(iii) Whether the credits were earned in a course that was 7
delivered online, in person, or hybrid. 8
(iv) Whether other students enrolled in the course in which the 9
credits were earned were enrolled in high school or counted the 10
course toward high school graduation requirements. 11
(c) The public university actively participates in and submits 12
timely updates to the Michigan Transfer Network created as part of 13
the Michigan Association of Collegiate Registrars and Admissions 14
Officers transfer agreement. 15
Sec. 241b. (1) No later than the first business day of 16
November 1 of each year, each public university that receives an 17
appropriation in section 236 shall report its annual security 18
report, also known as the Clery Act Report, as required under 20 19
USC 1092(f). Each public university shall include a title IX 20
summary report that includes all of the following information: 21
(a) The amounts and descriptions of all fees incurred in title 22
IX-related civil and criminal litigation. 23
(b) The number of title IX complaints. 24
(c) The average length of time for investigation and 25
resolution of title IX complaints. 26
(d) The aggregate number of title IX cases, investigations, 27
and complaints for each of the categories described in 28
subparagraphs (i) to (v), subject to subparagraph (vi), as follows: 29
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(i) Cases investigated for less than 15 days. 1
(ii) Cases investigated for at least 15 days and less than 30 2
days. 3
(iii) Cases investigated for at least 30 days and less than 60 4
days. 5
(iv) Cases investigated for at least 60 days and less than 90 6
days. 7
(v) Cases investigated for 90 days or more. 8
(vi) If, for any category of cases under subparagraphs (i) to 9
(v), there is an aggregate of fewer than 5 cases investigated, the 10
public university shall not report the aggregate number of cases 11
and instead shall report that fewer than 5 cases were investigated. 12
(e) The number of title IX appeals and the resolutions of 13
those appeals. 14
(f) The number of title IX-related complaints filed by the 15
public university with law enforcement agencies. 16
(2) No later than the first business day of November 1 of each 17
year, each public university that receives an appropriation in 18
section 236 shall certify all of the following: 19
(a) The public university complies with federal regulations 20
under title IX, as required by the United States Department of 21
Education, including, but not limited to, the following: 22
(i) Use of medical experts that do not have an actual or 23
apparent conflict of interest. 24
(ii) Issuance of title IX reports to complainants and 25
respondents that are not divergent. 26
(iii) Notification of resources to each individual who reports 27
having experienced sexual assault by a public university member. 28
(iv) Consistent annual training for title IX staff and law 29
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enforcement. 1
(b) The public university provides both of the following: 2
(i) An in-person sexual misconduct prevention presentation or 3
course for all freshman and incoming transfer students, which must 4
include contact information for the title IX office of the public 5
university. For a student who does not have any in-person credit 6
hours on campus, the university may provide the presentation or 7
course electronically. 8
(ii) An online or electronic sexual misconduct prevention 9
presentation or course for all students not considered freshmen or 10
incoming transfer students. 11
(c) The public university had a third party review its title 12
IX compliance office and related policies and procedures by the end 13
of the 2018-2019 academic year. A copy of the third-party review 14
must be transmitted to the state budget director, the house and 15
senate appropriations subcommittees on higher education, and the 16
house and senate fiscal agencies. Each public university shall have 17
a third-party review once every 4 years and a copy of the third-18
party review must be transmitted to the state budget director, the 19
house and senate appropriations subcommittees on higher education, 20
and the house and senate fiscal agencies. 21
(d) The public university requires that the governing board 22
and the president or chancellor of the public university receive 23
quarterly reports from their title IX coordinator or title IX 24
office. The report must contain aggregated data of the number of 25
sexual misconduct reports that the office received for the academic 26
year, the types of reports received, including reports received 27
against employees, and a summary of the general outcomes of the 28
reports and investigations. A member of the governing board may 29
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request to review a title IX investigation report involving a 1
complaint against an employee, and the public university shall 2
provide the report in a manner it considers appropriate. The public 3
university shall protect the complainant's anonymity, and the 4
report must not contain specific identifying information. 5
(e) If allegations against an employee are made in more than 1 6
title IX complaint that resulted in the public university finding 7
that no misconduct occurred, the public university requires that 8
the title IX officer promptly notify the president or chancellor 9
and a member of the public university's governing board in writing 10
and take all appropriate steps to ensure that the matter is being 11
investigated thoroughly, including hiring an outside investigator 12
for future cases involving that employee. A third-party title IX 13
investigation under this subdivision does not prohibit the public 14
university from simultaneously conducting its own title IX 15
investigation through its own title IX coordinator. 16
(f) The public university's president or chancellor and a 17
member of its governing board has reviewed all title IX reports 18
involving the alleged sexual misconduct of an employee of the 19
public university. 20
(3) As used in this section, "sexual misconduct" includes, but 21
is not limited to, intimate partner violence, nonconsensual sexual 22
conduct, sexual assault, sexual exploitation, sexual harassment, 23
and stalking. 24
Sec. 241c. (1) No later than the first last business day of 25
November August of each year, each public university that receives 26
an appropriation in section 236 shall submit the amount of tuition 27
and fees actually charged to a full-time resident undergraduate 28
student for academic year 2025-2026 2026-2027 as part of the public 29
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university's higher education institutional data inventory (HEIDI) 1
data. A public university shall report any revisions for any 2
semester of the reported academic year to HEIDI within 15 days of 3
being adopted. 4
(2) Payments under section 236d must be made only to a public 5
university that certifies provides the following certifications to 6
the state budget director by the first last business day of 7
November August of each year: that its board did not adopt an 8
increase in tuition and fee rates for resident undergraduate 9
students after September 1, 2024 for the 2024-2025 academic year 10
and that its board will not adopt an increase in tuition and fee 11
rates for resident undergraduate students for the 2025-2026 12
academic year that is greater than 4.5% or $735.00, whichever is 13
greater. For the academic year 2026-2027, the tuition and fee 14
restraint rate for resident undergraduate students is an increase 15
of not greater than 4.0% or $651.00, whichever is greater. It is 16
the intent of the legislature that in the next fiscal year, the 17
tuition and fee restraint rate will be adjusted only for the 18
subsequent academic year. As used in this subsection: 19
(a) "Fee" means any board-authorized fee that will be paid by 20
more than 1/2 of all resident undergraduate students at least once 21
during their enrollment at a public university, as described in the 22
higher education institutional data inventory (HEIDI) user manual. 23
A public university increasing a fee that applies to a specific 24
subset of students or courses shall provide sufficient information 25
to prove that the increase applied to that subset will not cause 26
the increase in the average amount of board-authorized total 27
tuition and fees paid by resident undergraduate students in the 28
academic year to exceed the limit established in this subsection. 29
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(b) "Tuition and fee rate" means the average of full-time 1
rates paid by a majority of students in each undergraduate class, 2
based on an unweighted average of the rates authorized by the 3
public university board and actually charged to students, deducting 4
any uniformly rebated or refunded amounts, for the 2 semesters with 5
the highest levels of full-time equated resident undergraduate 6
enrollment during the academic year, as described in the higher 7
education institutional data inventory (HEIDI) user manual. 8
(3) Each public university shall certify to the state budget 9
director by the first business day of November each year that it 10
complies with all of the following requirements: 11
(a) The public university participates in reverse transfer 12
agreements described in section 286 with at least 3 community 13
colleges in this state. 14
(b) The public university does not and will not apply any of 15
the following criteria when determining whether credits earned 16
outside the public university by a student count toward a degree or 17
certificate program offered by the public university: 18
(i) Whether the credits were earned in a dual enrollment 19
program that counted the credits toward high school graduation 20
requirements. 21
(ii) Whether the credits were earned in a course that was 22
delivered in a high school classroom, community college classroom 23
or campus, or another location. 24
(iii) Whether the credits were earned in a course that was 25
delivered online, in person, or hybrid. 26
(iv) Whether other students enrolled in the course in which the 27
credits were earned were enrolled in high school or counted the 28
course toward high school graduation requirements. 29
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(c) The public university actively participates in and submits 1
timely updates to the Michigan Transfer Network created as part of 2
the Michigan Association of Collegiate Registrars and Admissions 3
Officers transfer agreement. 4
(a) That the university's board did not adopt an increase in 5
tuition and fee rates for resident undergraduate students after 6
September 1, 2025 for the 2025-2026 academic year and that its 7
board will not adopt an increase in tuition and fee rates for 8
resident undergraduate students for the 2026-2027 academic year 9
that is greater than 4.0% or $651.00, whichever is greater. For the 10
academic year 2027-2028, the tuition and fee restraint rate for 11
resident undergraduate students is an increase of not greater than 12
3.5% or $599.00, whichever is greater. 13
(b) For academic year 2027-2028, either of the following: 14
(i) That the university does not have a mandatory on-campus 15
housing policy reportable under section 275m. 16
(ii) That the university does have a mandatory on-campus 17
housing policy reportable under section 275m, and that it will not 18
adopt an increase in room and board charges that would cause the 19
average charge for academic year 2027-2028 relative to academic 20
year 2027-2028 reported under section 275m to increase by an amount 21
exceeding 3.5% or $446.00, whichever is greater. 22
(3) (4) The state budget director shall implement uniform 23
reporting requirements to ensure that a public university receiving 24
a payment under section 236d has satisfied the tuition restraint 25
requirements of this section. The state budget director has the 26
sole authority to determine if a public university has met the 27
requirements of this section. Information reported by a public 28
university to the state budget director under this subsection must 29
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also be reported to the house and senate appropriations 1
subcommittees on higher education and the house and senate fiscal 2
agencies. 3
(4) As used in this section: 4
(a) "Fee" means any public university board-authorized fee 5
that will be paid by more than 1/2 of all resident undergraduate 6
students at least once during their enrollment at the public 7
university, as described in the higher education institutional data 8
inventory (HEIDI) user manual. A public university increasing a fee 9
that applies to a specific subset of students or courses shall 10
provide sufficient information to prove that the increase applied 11
to that subset will not cause the increase in the average amount of 12
board-authorized total tuition and fees paid by resident 13
undergraduate students in the academic year to exceed the limit 14
established in this subsection. 15
(b) "Room and board charges" means 1 or more accommodations 16
and meal plans used by a public university to calculate the average 17
charge reported under section 275m(1)(c). 18
(c) "Tuition and fee rate" means the average of full-time 19
rates paid by a majority of students in each undergraduate class, 20
based on an unweighted average of the rates authorized by the 21
public university board and actually charged to students, deducting 22
any uniformly rebated or refunded amounts, for the 2 semesters with 23
the highest levels of full-time equated resident undergraduate 24
enrollment during the academic year, as described in the higher 25
education institutional data inventory (HEIDI) user manual. 26
Sec. 241e. (1) Payments under section 236 for operations 27
increase 236d must be made only to a public university that 28
certifies to the state budget director of the department of 29
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lifelong education, advancement, and potential, or the director's 1
designee, by the last business day of August of each year that it 2
complies with the following: 3
(a) The institutional best practice described in subdivision 4
(c). 5
(b) One or more of the institutional best practices described 6
in subdivisions (d) to (g). 7
(a) (c) The public university accepts the Michigan Transfer 8
Agreement, partners with the Michigan Transfer Network, and 9
promotes clear transfer pathways for interested students by doing 10
all of the following: 11
(i) Has a policy to help transfer or accept associate degrees 12
from other accredited Michigan postsecondary education 13
institutions. 14
(ii) Publishes the policy described in subparagraph (i) on the 15
institution's website in an easily accessible way and in admissions 16
materials. 17
(iii) Provides publicly available information on the Michigan 18
Transfer Network, applicable transfer pathways, and financial aid 19
available to transfer students, at no cost to the student. 20
(iv) Begins negotiations to increase the number of reverse 21
transfer agreements or articulation agreements and reports on the 22
progress toward completing the agreements to the state budget 23
director by the last business day in February. 24
(b) (d) The public university requires all students to receive 25
an academic degree or certificate map that outlines required course 26
sequencing, program and institution requirements, declared minor 27
program academic requirements, and a recommended timeline within 28
which courses should be taken and in which specific semester or 29
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term in order to satisfy all program requirements to allow the 1
student to graduate on time. 2
(c) (e) The public university provides non-credit-bearing 3
developmental or remedial courses at a reduced cost to students. 4
(d) (f) The public university provides each degree- or 5
certificate-seeking student with a designated, trained academic 6
advisor to support student retention, persistence, and completion. 7
The public university shall require students to meet with their 8
academic advisor at least once per semester or term. 9
(e) (g) The public university provides employees during 10
business hours to assist prospective and current students complete 11
the Free Application for Federal Student Aid. 12
(f) The public university has adopted a corequisite model of 13
academic support for gateway English and mathematics courses in 14
which a student concurrently enrolls in a developmental education 15
course and a gateway-level course in a subject area where the 16
student requires remediation. The public university must ensure 17
that not more than 10% of students assessed as being in need of 18
developmental or remedial learning participate in a non-co-19
requisite developmental or remedial course. 20
(g) The public university has a policy and process for 21
assessing prior learning and knowledge that aligns with a student's 22
academic program and other required coursework. The policy must 23
include the opportunity for a student to earn credit toward a 24
degree or certificate, must be available to all students at no cost 25
to the student, and must be easily accessible on the public 26
university's website and in admissions materials. 27
(2) The state budget director of the department of lifelong 28
education, advancement, and potential, or the director's designee, 29
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shall implement uniform reporting requirements to ensure that a 1
public university receiving a payment under section 236 for 2
operations increase 236d has satisfied the institutional best 3
practices requirements of this section. The state budget director 4
of the department of lifelong education, advancement, and 5
potential, or the director's designee, has the sole authority to 6
determine if a public university has met the requirements of this 7
section. Information reported by a public university to the state 8
budget director of the department of lifelong education, 9
advancement, and potential, or the director's designee, under this 10
subsection must also be reported to the house and senate 11
appropriations subcommittees on higher education and the house and 12
senate fiscal agencies. 13
(3) If a public university fails to comply with the 14
certification requirements of this section, the state treasurer may 15
withhold the monthly installments under section 241 to the public 16
university until the report is submitted. If a public university 17
does not comply with the certification requirements described in 18
this section by the end of the fiscal year, the public university 19
forfeits the amount withheld. Forfeited funds must lapse to the 20
fund from which the funds were appropriated. The state budget 21
director of the department of lifelong education, advancement, and 22
potential, or the director's designee, shall notify the chairs of 23
the house and senate appropriations subcommittees on higher 24
education at least 10 days before withholding funds from any public 25
university. 26
(4) No later than the last business day of November of each 27
year, each public university that receives a payment under section 28
236d must provide a report to the director of the department of 29
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lifelong education, advancement, and potential, or the director's 1
designee, that includes the following information for the prior 2
academic year: 3
(a) College persistence for on-time completion defined by 30 4
credits completed for every 12 consecutive months of enrollment for 5
certificate- or degree-seeking students. 6
(b) College completion defined by certificate or degree 7
conferral. 8
Sec. 247. (1) The funds appropriated in section 236 for 9
Michigan reconnect must be distributed and administered by the 10
department of lifelong education, advancement, and potential 11
pursuant to the Michigan reconnect grant act, 2020 PA 84, MCL 12
390.1701 to 390.1709, the Michigan reconnect grant recipient act, 13
2020 PA 68, MCL 390.1711 to 390.1723, and the department's 14
administrative procedures for Michigan reconnect. 15
(2) For fiscal year 2025-2026 2026-2027 only, the department 16
of lifelong education, advancement, and potential may use the funds 17
appropriated in section 236 for Michigan reconnect to support 18
students who are receiving awards under the temporary "ARP - 19
Michigan reconnect expansion to 21" program described in 2023 PA 20
119. 21
Sec. 248. (1) The funds appropriated in section 236 for 22
Michigan achievement scholarships must be distributed as provided 23
in this section and section 248a, pursuant to the administrative 24
procedures for Michigan achievement scholarships of the department. 25
(2) As used in this section: 26
(a) "Cost of attendance" means expenses for a student's 27
tuition, mandatory fees, and contact hours for the student's actual 28
program of study; books, supplies, and equipment required for 29
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courses of instruction; housing and food costs; transportation 1
expenses; federal student loan fees; miscellaneous expenses, 2
including a reasonable amount for the documented cost of a personal 3
computer, allowance for child care, or allowance for other 4
dependent care; costs related to a disability; costs of obtaining a 5
license, certification, or first professional credential; and 6
reasonable costs for study abroad programs. 7
(b) "Department" means the department of lifelong education, 8
advancement, and potential. 9
(c) "Eligible institution" means a public university that 10
receives an appropriation in section 236, a community college that 11
receives an appropriation in section 201, a federally recognized 12
tribal college in this state, or an independent nonprofit college 13
or university in this state as described in section 1 of 1966 PA 14
313, MCL 390.991. 15
(d) "Gift aid" includes federal Pell grants under 20 USC 16
1070a, tuition incentive program benefits under section 256, state 17
tuition grants under section 252, awards received for minimum 18
payments awarded in subsection (4), higher education expenses paid 19
under the Michigan promise zone authority act, 2008 PA 549, MCL 20
390.1661 to 390.1679, and all other federal, state, local, or 21
institutional aid in the form of grants, scholarships, or discounts 22
applied toward tuition and mandatory fees. Gift aid does not 23
include student loans, work-study awards, qualified withdrawals 24
made from education savings accounts to pay higher education 25
expenses pursuant to the Michigan education savings program act, 26
2000 PA 161, MCL 390.1471 to 390.1486, or higher education expenses 27
paid under the Michigan education trust program pursuant to the 28
Michigan education trust act, 1986 PA 316, MCL 390.1421 to 29
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390.1442. 1
(e) "High school equivalency certificate" means that term as 2
defined in section 4. 3
(f) "Last-dollar payment amount" means 1 of the following: 4
(i) For a student attending a community college or federally 5
recognized tribal college, an amount equal to the student's 6
tuition, mandatory fees, and contact hours for the student's actual 7
program of study, minus all gift aid received by the student. 8
(ii) For a student attending a public university or an 9
independent nonprofit college or university, or for a student 10
enrolled in a baccalaureate degree program described in section 121 11
of the community college act of 1966, 1966 PA 331, MCL 389.121, an 12
amount equal to the student's individual cost of attendance, minus 13
all gift aid received by the student. 14
(g) "Minimum payment" means a payment for any eligible cost 15
within the student's individual cost of attendance. The minimum 16
payment must be awarded as a separate payment not included in the 17
student's need-based financial aid. The minimum payment must not be 18
reduced. 19
(h) "SAI eligible student" means a student who has completed 20
the Free Application for Federal Student Aid and meets at least 1 21
of the following: 22
(i) For awards made during academic year 2023-2024, has an 23
expected family contribution of $25,000.00 or less. An individual 24
is considered to have met the requirements of subsection (4) if the 25
individual received the Michigan achievement scholarship in 26
academic year 2023-2024, was determined to have an expected family 27
contribution of $25,000.00 or less in academic year 2023-2024, and 28
has completed the Free Application for Federal Student Aid for the 29
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subsequent award cycles. 1
(ii) For awards made during academic year 2024-2025 or a 2
subsequent academic year, has completed the Free Application for 3
Federal Student Aid and has a student aid index number of 1 of the 4
following, as applicable: 5
(A) For a student indicating on the student's Free Application 6
for Federal Student Aid that the student is the only member of the 7
student's household or the student's parents' household attending a 8
postsecondary institution during that academic year, $30,000.00 or 9
less. 10
(B) For a student indicating on the student's Free Application 11
for Federal Student Aid that the student is not the only member of 12
the student's household or the student's parents' household 13
attending a postsecondary institution during that academic year, 14
the greater of the number described in sub-subparagraph (A) or 15
guidance determined by the department. For the purposes of this 16
sub-subparagraph, the department, in collaboration with the state 17
budget office and the house and senate fiscal agencies, may 18
calculate a student aid index number or may issue administrative 19
guidance for the student aid index eligibility of students with 20
more than 1 member of the student's household or the student's 21
parents' household attending a postsecondary institution during 22
that academic year. It is intended that the utilization of a 23
student aid index instead of expected family contribution does not 24
adversely impact the eligibility of students with multiple members 25
of the student's household or student's parents' household 26
attending postsecondary institutions. It is further intended that 27
the legislature and executive branch work collaboratively to use 28
Michigan achievement scholarship uptake and other relevant data to 29
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establish a more permanent measure of financial need for the 1
Michigan achievement scholarship for subsequent academic years. 2
(3) An individual must meet all of the following criteria each 3
year to be eligible for a Michigan achievement scholarship awarded 4
under this section: 5
(a) Maintain residency in this state, as determined for 6
purposes of the Free Application for Federal Student Aid. 7
(b) Have graduated from high school in this state with a 8
diploma or certificate of completion or achieved a high school 9
equivalency certificate in 2023 or after. 10
(c) Be a full-time undergraduate student at an eligible 11
institution, as defined by that eligible institution, and be a 12
first-time enrollee in an eligible institution during the 2023-2024 13
academic year, or a subsequent academic year, within 15 24 months 14
after high school graduation or attainment of a high school 15
equivalency certificate or have received a Michigan achievement 16
scholarship in a previous academic year. For the purposes of this 17
subdivision, participation in a dual enrollment, early college, or 18
other similar program while attending high school does not 19
disqualify a student from being considered a first-time enrollee. 20
(d) Maintain satisfactory academic progress, as defined by the 21
eligible institution in which the student is enrolled. 22
(e) Not be in default on a federal student loan. 23
(f) Apply for all available gift aid for each academic year in 24
which the individual applies for a Michigan achievement 25
scholarship. 26
(g) For a student who is enrolled at an eligible institution 27
that is a public university or an independent nonprofit college or 28
university, or who is enrolled in a baccalaureate degree program 29
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described in section 121 of the community college act of 1966, 1966 1
PA 331, MCL 389.121, at an eligible institution, be an SAI eligible 2
student. 3
(4) The amount awarded to an eligible student at an eligible 4
institution must equal 1 of the following, as applicable: 5
(a) The amount awarded to an eligible student who is enrolled 6
at an eligible institution that is a community college or federally 7
recognized tribal college where the student is eligible for that 8
institution's in-district tuition rate must be equal to the sum of 9
the last-dollar payment amount. The amount awarded to an eligible 10
student who is eligible for a federal Pell grant under 20 USC 1070a 11
must include an additional amount of $1,000.00. 12
(b) The amount awarded to an eligible student who is enrolled 13
at an eligible institution that is a community college or federally 14
recognized tribal college where the student is not eligible for 15
that institution's in-district tuition rate must be the lesser of 16
the last-dollar payment amount, or the in-district tuition rate. 17
The amount awarded to an eligible student who is eligible for a 18
federal Pell grant under 20 USC 1070a must include an additional 19
amount of $1,000.00. 20
(c) The amount awarded to an eligible student who is enrolled 21
at an eligible institution that is a public university or is 22
enrolled in a baccalaureate degree program described in section 121 23
of the community college act of 1966, 1966 PA 331, MCL 389.121, at 24
an eligible institution must equal the sum of following: 25
(i) A minimum payment of $2,500.00. 26
(ii) The lesser of $3,000.00 or the student's last-dollar 27
payment amount. 28
(d) The amount awarded to an eligible student at an eligible 29
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institution that is an independent nonprofit college or university 1
must equal the sum of the following: 2
(i) A minimum payment of $2,500.00. 3
(ii) The lesser of $3,000.00 or the student's last-dollar 4
payment amount. 5
(e) Money awarded under this subsection for a Michigan 6
achievement scholarship must be paid to the eligible institution 7
for credit to the student's account. 8
(5) Subject to section 248a(3)(f)(i), an eligible student may 9
receive a Michigan achievement scholarship award under this section 10
or section 248a for a maximum of 5 academic years, not more than 3 11
of which may be for attending eligible institutions that are 12
community colleges or federally recognized tribal colleges unless 13
the student is enrolled in a baccalaureate degree program described 14
in section 121 of the community college act of 1966, 1966 PA 331, 15
MCL 389.121. A student may not receive an award under this section 16
and section 248a(3)(f)(i) during the same academic year. 17
(6) The department shall work closely with participating 18
institutions to provide the highest level of participation and 19
ensure that all requirements of the program are met. 20
(7) From the funds appropriated in section 236(7) for the 21
Michigan achievement scholarships, the department may not use more 22
than $10,000,000.00 for the purposes of outreach programs to raise 23
awareness of the Michigan achievement scholarship described in this 24
section and section 248a and shall ensure that Michigan achievement 25
scholarships are well publicized and that high school students are 26
provided information on the program. The department may receive and 27
expend funds received from outside sources for scholarships, 28
marketing, or other purposes related to the Michigan achievement 29
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scholarship. The department shall provide the necessary funding and 1
staff to fully operate the program. 2
(7) (8) The department shall convene a workgroup to consider 3
and advise the department on implementing policies for 4
administering the Michigan achievement scholarship. The workgroup 5
shall include participation from the Michigan Association of State 6
Universities and its institutional members, the Michigan College 7
Access Network, the Michigan Community College Association and its 8
institutional members, the Michigan Independent Colleges and 9
Universities and its institutional members, and any other 10
interested stakeholders and offices as determined by the 11
department. The workgroup shall make recommendations on packaging 12
order, packaging structure, definitions of terms not otherwise 13
defined in statute, and other administrative regulatory 14
requirements as necessary to implement the Michigan achievement 15
scholarship. 16
(8) (9) The following reporting obligations apply to the 17
Michigan achievement scholarship program: 18
(a) By February 15 of each year, the department shall provide 19
a written report, organized by eligible institution, to the house 20
and senate appropriations subcommittees on higher education, the 21
house and senate fiscal agencies, and the state budget director 22
that includes the following information for the previous academic 23
year: 24
(i) The number of students who qualified for a Michigan 25
achievement scholarship. 26
(ii) The number of students who received a Michigan achievement 27
scholarship. 28
(iii) The average number of credits earned by students who 29
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received a Michigan achievement scholarship. 1
(iv) The number of Michigan achievement scholarships that were 2
canceled due to failure to maintain satisfactory academic progress 3
as described in subsection (3)(d). 4
(v) The number of Michigan achievement scholarships that were 5
canceled due to a student ceasing attendance at an eligible 6
institution. The number must not include any known transfers to 7
another eligible institution. 8
(vi) The number of Michigan achievement scholarships that were 9
canceled due to a student's failure to maintain full-time status. 10
(vii) The average Michigan achievement scholarship award per 11
student, delineated by sector, including community colleges, tribal 12
colleges, public universities, independent colleges and 13
universities, and training institutions. As used in this 14
subparagraph, "training institutions" means training institutions 15
accepted to participate in the Michigan achievement scholarship 16
program under section 248a. 17
(b) Each eligible institution whose students receive awards 18
under this section shall cooperate with the department in a timely 19
manner to facilitate the creation of the report under subdivision 20
(a). 21
(9) (10) By April 1 of each year, each eligible institution 22
shall submit a report to the department, the state budget office, 23
and the house and senate fiscal agencies providing information as 24
to the average amount of institutional grant aid awarded to full-25
time first-time undergraduate students for the immediately 26
preceding 2 institution fiscal years. If the average amount of 27
institutional grant aid awarded to full-time first-time 28
undergraduate students in fiscal year 2024-2025 2025-2026 is less 29
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than the average amount of institutional grant aid awarded to full-1
time first-time undergraduate students in fiscal year 2023-2024, 2
2024-2025, the institution shall include in the report a 3
description of any changes to the institutional financial aid 4
during the 2 immediately preceding fiscal years. An institution's 5
report of the average amount of institutional grant aid awarded to 6
full-time first-time undergraduate students pursuant to this 7
subsection must be consistent with data most recently reported to 8
the Integrated Postsecondary Education Data System. 9
(10) (11) For each fiscal year, an eligible institution shall 10
maintain and report its compliance with the following tuition 11
restraint requirements, as applicable: 12
(a) For an eligible institution that is a community college, 13
the tuition restraint described in section 217b. 14
(b) For an eligible institution that is a public university or 15
independent nonprofit college or university, the tuition restraint 16
described in section 241c. 17
(11) (12) The state budget director shall implement reporting 18
requirements to ensure that an eligible institution has satisfied 19
the tuition restraint requirements of this section. The state 20
budget director has the sole authority to determine if an eligible 21
institution has met the requirements of this section. 22
(12) (13) If an eligible institution exceeds the applicable 23
tuition restraint level for 2 consecutive years, the state budget 24
director may consider the institution ineligible for funding under 25
this section in the subsequent academic year. 26
(13) (14) If an institution is considered ineligible for 27
funding under this section, the state budget director shall 28
reevaluate the status of the ineligible institution after 1 29
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academic year. 1
(14) (15) It is the intent of the legislature that an eligible 2
institution will not make reductive changes to scholarship or 3
financial aid programs offered by that eligible institution that 4
have the goal or net effect of shifting the cost burden of those 5
programs to the program described in this section. 6
Sec. 254. The Subject to sections 217g and 275l, the sums 7
appropriated in sections 236 and 236e for the state competitive 8
scholarship, tuition incentive, tuition grant, Michigan reconnect, 9
and Michigan achievement scholarship programs must be paid out of 10
the state treasury and must be distributed to the respective 11
institutions under a quarterly payment system as follows: 12
(a) For the state competitive scholarship and tuition grant 13
programs, 50% must be paid at the beginning of the state's first 14
fiscal quarter, 30% during the state's second fiscal quarter, 10% 15
during the state's third fiscal quarter, and 10% during the state's 16
fourth fiscal quarter. 17
(b) For the tuition incentive program, Michigan reconnect, and 18
Michigan achievement scholarship, 65% must be paid at the beginning 19
of the state's first fiscal quarter, and 35% during the state's 20
second fiscal quarter. 21
Sec. 256. (1) The funds appropriated in section 236 for the 22
tuition incentive program must be distributed as provided in this 23
section and pursuant to the administrative procedures for the 24
tuition incentive program of the department of lifelong education, 25
advancement, and potential. 26
(2) As used in this section: 27
(a) "Phase I" means the first part of the tuition incentive 28
program defined as the academic period of 80 semester or 120 term 29
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credits, or less, leading to an associate degree or certificate. 1
Students must be enrolled in a certificate or associate degree 2
program and taking classes within the program of study for a 3
certificate or associate degree. Tuition will not be covered for 4
courses outside of a certificate or associate degree program. 5
(b) "Phase II" means the second part of the tuition incentive 6
program that provides assistance in the third and fourth year of 4-7
year degree programs. 8
(c) "Department" means the department of lifelong education, 9
advancement, and potential. 10
(d) "High school equivalency certificate" means that term as 11
defined in section 4. 12
(3) An individual must meet the following basic criteria and 13
financial thresholds to be eligible for tuition incentive program 14
benefits: 15
(a) To be eligible for phase I, an individual must meet all of 16
the following criteria: 17
(i) Be less than 20 years of age at the time the individual 18
graduates from high school with a diploma or certificate of 19
completion or achieves a high school equivalency certificate or, 20
for students attending a 5-year middle college approved by the 21
Michigan department of education, be less than 21 years of age when 22
the individual graduates from high school, or be considered a 23
special education pupil at the time the individual graduated from 24
high school as described in section 6(4)(l)(i). 25
(ii) Be a United States citizen and maintain residency in this 26
state, as determined for purposes of the Free Application for 27
Federal Student Aid. 28
(iii) Be at least a half-time student, earning less than 80 29
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semester or 120 term credits at a participating educational 1
institution within 4 years of high school graduation or achievement 2
of a high school equivalency certificate. All program eligibility 3
expires 10 years after initial enrollment at a participating 4
educational institution. 5
(iv) Meet the satisfactory academic progress policy of the 6
educational institution attended by the individual. 7
(b) To be eligible for phase II, an individual must meet 8
either of the following criteria in addition to the criteria in 9
subdivision (a): 10
(i) Complete at least 56 transferable semester or 84 11
transferable term credits. 12
(ii) Obtain an associate degree or certificate at a 13
participating institution. 14
(c) To be eligible for phase I or phase II, an individual must 15
be financially eligible as determined by the department. An 16
individual is financially eligible for the tuition incentive 17
program if the individual was eligible for Medicaid from this state 18
for 24 months within any 36 months prior to completion of high 19
school or achievement of a high school equivalency certificate. The 20
department shall accept certification of Medicaid eligibility only 21
from the department of health and human services for the purposes 22
of verifying if a person is Medicaid eligible for 24 months within 23
any 36 months prior to completion of high school or achievement of 24
a high school equivalency certificate. Certification of eligibility 25
may begin in the sixth grade. 26
(4) For phase I, the department shall provide payment on 27
behalf of a person eligible under subsection (3). The department 28
shall only accept standard per-credit hour tuition billings and 29
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shall reject billings that are excessive or outside the guidelines 1
for the type of educational institution. 2
(5) For phase I, all of the following apply: 3
(a) Payments for associate degree or certificate programs must 4
not be made for more than 80 semester or 120 term credits for any 5
individual student at any participating institution. The department 6
shall not do either of the following: 7
(i) Adopt or apply any total semester-credit or term-credit 8
maximum that is less than the 80 semester-credit or 120 term-credit 9
maximum provided in this subdivision. 10
(ii) Adopt or apply any per-semester or per-term credit maximum 11
for a student whose semester-credit or term-credit load will not 12
result in exceeding the total 80 semester-credit or 120 term-credit 13
maximum provided in this subdivision. 14
(b) For persons enrolled at a Michigan community college, the 15
department shall pay the current in-district tuition and mandatory 16
fees. For persons residing in an area that is not included in any 17
community college district, the out-of-district tuition rate may be 18
authorized. 19
(c) For persons enrolled at a Michigan public university, the 20
department shall pay lower division resident tuition and mandatory 21
fees for the current year. 1 of the following, as applicable: 22
(i) For awards made during academic year 2026-2027, or a prior 23
academic year, lower division resident tuition and mandatory fees 24
for the current year. 25
(ii) For awards made during academic year 2027-2028 or a 26
subsequent academic year, mandatory fees for the current year and a 27
per-credit payment that does not exceed 2.5 times the average 28
community college in-district per-credit tuition rate as reported 29
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by the last business day of August for the immediately preceding 1
academic year. 2
(d) For persons enrolled at a Michigan independent, nonprofit 3
degree-granting college or university or a Michigan federal 4
tribally controlled community college, the department shall pay 5
mandatory fees for the current year and a per-credit payment that 6
does not exceed the average community college in-district per-7
credit tuition rate as reported by the last business day of August 8
for the immediately preceding academic year. 9
(6) A person participating in phase II may be eligible for 10
additional funds not to exceed $500.00 per semester or $400.00 per 11
term up to a maximum of $2,000.00 subject to the following 12
conditions: 13
(a) Credits are earned in a 4-year program at a Michigan 14
degree-granting 4-year college or university. 15
(b) The tuition reimbursement is for coursework completed 16
within 30 months of completion of the phase I requirements. 17
(7) The department shall work closely with participating 18
institutions to provide the highest level of participation and 19
ensure that all requirements of the program are met. 20
(8) The department shall notify students in an age-appropriate 21
manner of their financial eligibility for the program any time 22
after the student begins sixth grade. 23
(9) Except as otherwise provided in sections 13(c) and 17 of 24
the Michigan reconnect grant recipient act, 2020 PA 68, MCL 25
390.1713 and 390.1717, each institution shall ensure that all known 26
available restricted grants for tuition and fees are used before 27
billing the tuition incentive program for any portion of a 28
student's tuition and fees. 29
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(10) The department shall ensure that the tuition incentive 1
program is well publicized and that eligible Medicaid clients are 2
provided information on the program. The department shall provide 3
the necessary funding and staff to fully operate the program. 4
(11) The department shall collaborate with the center to use 5
the P-20 longitudinal data system to report the following 6
information for each qualified postsecondary institution: 7
(a) The number of phase I students in the most recently 8
completed academic year who in any academic year received a tuition 9
incentive program award and who successfully completed a degree or 10
certificate program. Cohort graduation rates for phase I students 11
must be calculated using the established success rate methodology 12
developed by the center in collaboration with the postsecondary 13
institutions. 14
(b) The number of students in the most recently completed 15
academic year who in any academic year received a Pell grant at the 16
reporting institution and who successfully completed a degree or 17
certificate program. Cohort graduation rates for students who 18
received Pell grants must be calculated using the established 19
success rate methodology developed by the center in collaboration 20
with the postsecondary institutions. 21
(12) If a qualified postsecondary institution does not report 22
the data necessary to complete the reporting in subsection (11) to 23
the P-20 longitudinal data system by October 15 for the prior 24
academic year, the department shall not award phase I tuition 25
incentive program funding to otherwise eligible students enrolled 26
in that institution until the data are submitted. 27
Sec. 263. (1) Included in the appropriation in section 236 for 28
fiscal year 2025-2026 2026-2027 for MSU AgBioResearch is 29
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$2,982,900.00 and included in the appropriation in section 236 for 1
MSU Extension is $2,645,200.00 for Project GREEEN. Project GREEEN 2
is intended to address critical regulatory, food safety, economic, 3
and environmental problems faced by this state's plant-based 4
agriculture, forestry, and processing industries. "GREEEN" is an 5
acronym for Generating Research and Extension to Meet Environmental 6
and Economic Needs. 7
(2) The department of agriculture and rural development and 8
Michigan State University, in consultation with agricultural 9
commodity groups and other interested parties, shall develop 10
Project GREEEN and its program priorities. 11
Sec. 263b. Included in the appropriation in section 236 for 12
fiscal year 2025-2026 2026-2027 for MSU AgBioResearch and MSU 13
Extension is funding for the Agricultural Climate Resiliency 14
Program. The Agricultural Climate Resiliency Program is intended to 15
address environmental sustainability of Michigan agriculture and 16
promote the protection and efficient use of Michigan's water 17
resources. 18
Sec. 264. Included in the appropriation in section 236 for 19
fiscal year 2025-2026 2026-2027 for Michigan State University is 20
$80,000.00 for the Michigan Future Farmers of America Association. 21
This $80,000.00 allocation must not supplant any existing support 22
that Michigan State University provides to the Michigan Future 23
Farmers of America Association. 24
Sec. 268. (1) For the fiscal year ending September 30, 2026, 25
2027, it is the intent of the legislature that funds be allocated 26
for unfunded North American Indian tuition waiver costs incurred by 27
public universities under 1976 PA 174, MCL 390.1251 to 390.1253, 28
from the general fund. 29
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(2) By January 15 of each year, the department of lifelong 1
education, advancement, and potential shall annually submit to the 2
state budget director, the house and senate appropriations 3
subcommittees on higher education, and the house and senate fiscal 4
agencies a report on North American Indian tuition waivers for the 5
preceding academic year that includes, but is not limited to, all 6
of the following information: 7
(a) The number of waiver applications received and the number 8
of waiver applications approved. 9
(b) For each public university submitting information under 10
subsection (3), all of the following: 11
(i) The number of graduate and undergraduate North American 12
Indian Native American students enrolled each term for the previous 13
academic year. 14
(ii) The number of North American Indian waivers granted each 15
term, including to continuing education students, and the monetary 16
value of the waivers for granted each term of the previous academic 17
year. 18
(iii) The number of North American Indian Native American 19
students who receive a granted waiver for the previous academic 20
year. 21
(iv) The number of graduate and undergraduate students 22
attending under a North American Indian tuition waiver who withdrew 23
from the public university each term during the previous academic 24
year. For purposes of this subparagraph, a withdrawal occurs when a 25
student who has been awarded the waiver withdraws from the 26
institution at any point during the term, regardless of enrollment 27
in subsequent terms. 28
(v) The number of graduate and undergraduate students 29
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attending under a North American Indian tuition waiver who 1
successfully transfer to a 4-year public or private university, or 2
complete a degree or certificate program, separated by degree or 3
certificate level, and the graduation rate for graduate and 4
undergraduate students attending under a North American Indian 5
tuition waiver who complete a degree or certificate within 150% of 6
the normal time to complete, separated by the level of the degree 7
or certificate. 8
(3) By January 1 of each year, a public university that 9
receives an appropriation in section 236, or a tribal college 10
receiving pass-through funds under section 269, 270, or 270c, shall 11
provide to the department of lifelong education, advancement, and 12
potential any information necessary for preparing the report 13
detailed in subsection (2), using guidelines and procedures 14
developed by the department of lifelong education, advancement, and 15
potential. 16
(4) The department of lifelong education, advancement, and 17
potential may consolidate the report required under this section 18
with the report required under section 223, but a consolidated 19
report must separately identify data for public universities and 20
data for community colleges. 21
Sec. 269. For fiscal year 2025-2026, 2026-2027, from the 22
amount appropriated in section 236 to Central Michigan University 23
for costs incurred under the North American Indian tuition waiver, 24
$80,800.00 $96,700.00 must be paid to Saginaw Chippewa Tribal 25
College for the costs of waiving tuition for North American Indians 26
under 1976 PA 174, MCL 390.1251 to 390.1253. It is the intent of 27
the legislature that Saginaw Chippewa Tribal College provide the 28
department of lifelong education, advancement, and potential the 29
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necessary information for the college to be included in the report 1
required under section 268. 2
Sec. 270. For fiscal year 2025-2026, 2026-2027, from the 3
amount appropriated in section 236 to Lake Superior State 4
University for costs incurred under the North American Indian 5
tuition waiver, $498,800.00 $465,000.00 must be paid to Bay Mills 6
Community College for the costs of waiving tuition for North 7
American Indians under 1976 PA 174, MCL 390.1251 to 390.1253. It is 8
the intent of the legislature that Bay Mills Community College 9
provide the department of lifelong education, advancement, and 10
potential the necessary information for the college to be included 11
in the report required under section 268. 12
Sec. 270c. For fiscal year 2025-2026, 2026-2027, from the 13
amount appropriated in section 236 to Northern Michigan University 14
for costs incurred under the North American Indian tuition waiver, 15
$105,700.00 $112,200.00 is to be paid to Keweenaw Bay Ojibwa 16
Community College for the costs of waiving tuition for North 17
American Indians under 1976 PA 174, MCL 390.1251 to 390.1253. It is 18
the intent of the legislature that Keweenaw Bay Ojibwa Community 19
College provide the department of lifelong education, advancement, 20
and potential the necessary information for the community college 21
to be included in the report required under section 268. 22
Sec. 275l. (1) Subject to subsection (2), the state treasurer 23
shall reduce payments made under section 254 for any public 24
university that is an authorizing body by an amount equal to the 25
difference between the amount reported under section 275k(1)(m)(i) 26
during the previous fiscal year and 1% times the total state school 27
aid received by all public school academies authorized by the 28
authorizing body during that fiscal year. The state treasurer may 29
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coordinate with the state budget office or any other state 1
department or agency to administer this section. 2
(2) If the calculation under subsection (1) would result in a 3
net payment under section 254 that is a negative number, the 4
payment under section 254 must be $0.00. 5
(3) As used in this section: 6
(a) "Authorizing body" means that term as defined in section 7
501 of the revised school code, 1976 PA 451, MCL 380.501. 8
(b) "Total state school aid" means that term as used in 9
section 502 of the revised school code, 1976 PA 451, MCL 380.502. 10
Sec. 275n. A student may not receive an award under a 11
scholarship program receiving an appropriation under section 236(7) 12
under either of the following conditions: 13
(a) The student is enrolled in a program of study leading to a 14
degree in theology, divinity, or religious education. 15
(b) The student is enrolled at a college or university that 16
does not have a board-approved policy of inclusion and 17
nondiscrimination that includes race, ethnicity, citizenship, 18
color, religion, gender and gender identity, sexual orientation, 19
national origin, veteran status, ability status, or any other 20
characteristic protected under the Elliott-Larsen civil rights act, 21
1976 PA 453, MCL 37.2101 to 37.2804. 22
Sec. 275o. (1) By December 31, 2026, each public university 23
that receives an appropriation under section 236 shall produce a 24
report detailing any increases, decreases, or other substantive 25
changes to diversity, equity, and inclusion programs made after 26
January 1, 2026. 27
(2) If the report described in subsection (1) documents a 28
change that could reduce access to a diversity, equity, or 29
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inclusion program for that university's students or employees, the 1
university shall also report other efforts, programs, or resources 2
that the university provides that would serve to mitigate any 3
negative consequences associated with the documented program 4
reduction. 5
Sec. 276. (1) Included in the appropriation for fiscal year 6
2025-2026 2026-2027 for each public university in section 236 is 7
funding for the Martin Luther King, Jr. - Cesar Chavez Dolores 8
Huerta – Morris Hood Jr. - Rosa Parks future faculty fellowship 9
program that is intended to increase the pool of academically or 10
economically disadvantaged candidates pursuing faculty or 11
administration careers in postsecondary education in this state. 12
Preference may not be given to applicants on the basis of race, 13
color, ethnicity, gender, or national origin. Institutions should 14
encourage applications from applicants who would otherwise not 15
adequately be represented in the graduate student, faculty, or 16
administration populations. Each public university shall apply the 17
percentage change applicable to every public university in the 18
calculation of appropriations in section 236 to the amount of funds 19
allocated to the future faculty fellowship program. 20
(2) Each public university shall administer the program in a 21
manner prescribed by the department of labor and economic 22
opportunity. The department of labor and economic opportunity shall 23
use a good-faith effort standard to evaluate whether a fellowship 24
is in default. All of the following apply to the program: 25
(a) By June 15 of each year, public universities shall report 26
any anticipated unexpended or unencumbered program funds to the 27
department of labor and economic opportunity. Encumbered funds are 28
those funds that were committed by a fellowship agreement that is 29
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signed during the current fiscal year or administrative expenses 1
that have been approved by the department of labor and economic 2
opportunity. 3
(b) Before September 1 of each year, unexpended or 4
unencumbered funds may be transferred, under the direction of the 5
department of labor and economic opportunity, to a future faculty 6
fellowship program at another public university to be awarded to an 7
eligible candidate at that public university. 8
(c) Program allocations not expended or encumbered by 9
September 30, 2027 2028 must be returned to the department of labor 10
and economic opportunity so that those funds may lapse to the state 11
general fund. 12
(d) Not more than 5% of each public university's allocation 13
for the program may be used for administration of the program. 14
(e) In addition to the appropriation for fiscal year 2025-15
2026, 2026-2027, any revenue received during prior fiscal years by 16
the department of labor and economic opportunity from defaulted 17
fellowship agreements is appropriated for the purposes originally 18
intended. 19
Sec. 277. (1) Included in the appropriation for fiscal year 20
2025-2026 2026-2027 for each public university in section 236 is 21
funding for the Martin Luther King, Jr. - Cesar Chavez Dolores 22
Huerta – Morris Hood Jr. - Rosa Parks college day program that is 23
intended to introduce academically or economically disadvantaged 24
schoolchildren to the potential of a college education in this 25
state. Preference may not be given to participants on the basis of 26
race, color, ethnicity, gender, or national origin. Public 27
universities should encourage participation from those who would 28
otherwise not adequately be represented in the student population. 29
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CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
(2) Individual program plans of each public university must 1
include a budget of equal contributions from this program, the 2
participating public university, the participating school district, 3
and the participating independent degree-granting college. College 4
day funds must not be expended to cover indirect costs. Not more 5
than 20% of the university match may be attributable to indirect 6
costs. Each public university shall apply the percentage change 7
applicable to every public university in the calculation of 8
appropriations in section 236 to the amount of funds allocated to 9
the college day program. 10
(3) Each public university shall administer the program 11
described in this section in a manner prescribed by the department 12
of labor and economic opportunity. 13
Sec. 278. (1) Included in the appropriation for fiscal year 14
2025-2026 2026-2027 for each public university in section 236 is 15
funding for the Martin Luther King, Jr. - Cesar Chavez Dolores 16
Huerta – Morris Hood Jr. - Rosa Parks select student support 17
services program for developing academically or economically 18
disadvantaged student retention programs for 4-year public and 19
independent educational institutions in this state. Preference may 20
not be given to participants on the basis of race, color, 21
ethnicity, gender, or national origin. Institutions should 22
encourage participation from those who would otherwise not 23
adequately be represented in the student population. 24
(2) An award made under this program to any 1 institution must 25
not be greater than $150,000.00, must have an award period of no 26
more than 2 years, and must be matched on a 70% state, 30% college 27
or university basis. 28
(3) The department of labor and economic opportunity shall 29
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administer the program described in this section. 1
Sec. 279. (1) Included in the appropriation for fiscal year 2
2025-2026 2026-2027 for each public university in section 236 is 3
funding for the Martin Luther King, Jr. - Cesar Chavez Dolores 4
Huerta – Morris Hood Jr. - Rosa Parks college/university 5
partnership program between 4-year public and independent colleges 6
and universities and public community colleges, which is intended 7
to increase the number of academically or economically 8
disadvantaged students who transfer from community colleges into 9
baccalaureate programs in this state. Preference may not be given 10
to participants on the basis of race, color, ethnicity, gender, or 11
national origin. Institutions should encourage participation from 12
those who would otherwise not adequately be represented in the 13
transfer student population. 14
(2) The grants must be made under the program described in 15
this section to Michigan public and independent colleges and 16
universities. An award to any 1 institution must not be greater 17
than $150,000.00, must have an award period of no more than 2 18
years, and must be matched on a 70% state, 30% college or 19
university basis. 20
(3) The department of labor and economic opportunity shall 21
administer the program described in this section. 22
Sec. 280. (1) Included in the appropriation for fiscal year 23
2025-2026 2026-2027 for each public university in section 236 is 24
funding for the Martin Luther King, Jr. - Cesar Chavez Dolores 25
Huerta – Morris Hood Jr. - Rosa Parks visiting professors program, 26
which is intended to increase the number of instructors in the 27
classroom to provide role models for academically or economically 28
disadvantaged students. Preference may not be given to participants 29
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on the basis of race, color, ethnicity, gender, or national origin. 1
Public universities should encourage participation from those who 2
would otherwise not adequately be represented in the student 3
population. 4
(2) The department of labor and economic opportunity shall 5
administer the program described in this section. 6
(3) The amount allocated to each public university is 7
$11,184.00 and is subject to an award period of no more than 2 8
years. Each public university receiving funds for fiscal year 2025-9
2026 2026-2027 under this section shall report to the department of 10
labor and economic opportunity by April 15, 2026 2027 the amount of 11
its unobligated and unexpended funds as of March 31, 2026 2027 and 12
a plan to expend the remaining funds by the end of the fiscal year. 13
The amount of funding reported as not being expended may be 14
transferred, under the direction of the department, to another 15
public university for use under this section. 16
Sec. 281. (1) Included in the appropriation for fiscal year 17
2025-2026 2026-2027 for each public university in section 236 is 18
funding under the Martin Luther King, Jr. - Cesar Chavez Dolores 19
Huerta – Morris Hood Jr. - Rosa Parks initiative for the Morris 20
Hood, Jr. educator development program, which is intended to 21
increase the number of academically or economically disadvantaged 22
students who enroll in and complete K-12 teacher education programs 23
at the baccalaureate level and teach in this state. Preference may 24
not be given to participants on the basis of race, color, 25
ethnicity, gender, or national origin. Institutions should 26
encourage participation from those who would otherwise not 27
adequately be represented in the teacher education student 28
population. 29
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(2) The program described in this section must be administered 1
by each state-approved teacher education institution in a manner 2
prescribed by the department of labor and economic opportunity. 3
(3) Approved teacher education institutions may and are 4
encouraged to use select student support services funding in 5
coordination with the Morris Hood, Jr. funding to achieve the goals 6
of the program described in this section. 7
Sec. 282. (1) Each institution receiving funds for fiscal year 8
2025-2026 2026-2027 under section 278, 279, or 281 shall provide to 9
the department of labor and economic opportunity by April 15, 2026 10
2027 the unobligated and unexpended funds as of March 31, 2026 2027 11
and a plan to expend the remaining funds by the end of the fiscal 12
year. Notwithstanding the award limitations in sections 278 and 13
279, the amount of funding reported as not being expended will be 14
reallocated to the institutions that intend to expend all funding 15
received under section 278, 279, or 281. 16
(2) Funds received for the purpose of administering programs 17
under sections 278, 279, and 281 must not be used for direct 18
financial aid or indirect financial aid. However, a public 19
university may provide academic incentives to motivate 20
participating students as approved by the department. As used in 21
this subsection: 22
(a) "Direct financial aid" includes, but is not limited to, 23
scholarships, payment of tuition, stipends, and work-studies. 24
(b) "Indirect financial aid" includes, but is not limited to, 25
transportation, textbook allowances, child care support, and 26
assistance with medical premiums or expenses. 27
Sec. 287. Not later than December 1 of each year, each public 28
university that receives an appropriation in section 236 shall 29
519
CRM S06118'26 (S-1)_SB860_APS_1 afpb1q
provide a report to the house and senate appropriations 1
subcommittees on higher education, the house and senate fiscal 2
agencies, and the state budget director providing an itemized cost 3
of attendance for full-time students attending that public 4
university for the current and previous 2 academic years. 5
Enacting section 1. (1) In accordance with section 30 of 6
article IX of the state constitution of 1963, total state spending 7
on school aid under article I of the state school aid act of 1979, 8
1979 PA 94, MCL 388.1601 to 388.1772, as amended by 2025 PA 15 and 9
this amendatory act, from state sources for fiscal year 2025-2026 10
is estimated at $18,704,213,800.00 and state appropriations for 11
school aid to be paid to local units of government for fiscal year 12
2025-2026 are estimated at $17,433,304,100.00. In accordance with 13
section 30 of article IX of the state constitution of 1963, total 14
state spending on school aid under article I of the state school 15
aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended 16
by this amendatory act, from state sources for fiscal year 2026-17
2027 is estimated at $19,617,320,800.00 and state appropriations 18
for school aid to be paid to local units of government for fiscal 19
year 2026-2027 are estimated at $18,113,118,900.00. 20
(2) In accordance with section 30 of article IX of the state 21
constitution of 1963, total state spending from state sources for 22
community colleges for fiscal year 2026-2027 under article II of 23
the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to 24
388.1830, as amended by this amendatory act, is estimated at 25
$490,763,500.00 and the amount of that state spending from state 26
sources to be paid to local units of government for fiscal year 27
2026-2027 is estimated at $490,763,500.00. 28
(3) In accordance with section 30 of article IX of the state 29
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constitution of 1963, total state spending from state sources for 1
higher education for fiscal year 2026-2027 under article III of the 2
state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891, 3
as amended by this amendatory act, is estimated at 4
$2,586,932,800.00 and the amount of that state spending from state 5
sources to be paid to local units of government for fiscal year 6
2026-2027 is estimated at $0.00. 7
Enacting section 2. Sections 11y, 11bb, 25g, 27k, 41, 41b, 55, 8
61d, 97k, 99aa, 99ee, 99mm, 107a, 147g, 164k, 217f, and 241h of the 9
state school aid act of 1979, 1979 PA 94, MCL 388.1611y, 10
388.1611bb, 388.1625g, 388.1627k, 388.1641, 388.1641b, 388.1655, 11
388.1661d, 388.1697k, 388.1699aa, 388.1699ee, 388.1699mm, 12
388.1707a, 388.1747g, 388.1764k, 388.1817f, and 388.1841h, are 13
repealed. 14
Enacting section 3. (1) Sections 11, 22a, 22b, 26a, 26d, 27b, 15
51a, 51c, 51e, 56, 62, 104, 147a, and 147e of the state school aid 16
act of 1979, 1979 PA 94, MCL 388.1611, 388.1622a, 388.1622b, 17
388.1626a, 388.1626d, 388.1627b, 388.1651a, 388.1651c, 388.1651e, 18
388.1656, 388.1662, 388.1704, 388.1747a, and 388.1747e, as amended 19
by this amendatory act, if granted immediate effect pursuant to 20
section 27 of article IV of the state constitution of 1963, take 21
effect on enactment of this amendatory act. 22
(2) Except as otherwise provided for those sections listed in 23
subsection (1), the remaining sections of this amendatory act take 24
effect October 1, 2026. 25
Enacting section 4. This amendatory act does not take effect 26
unless Senate Bill No. 903 of the 103rd Legislature is enacted into 27
law. 28