School aid: other; weighted funding formula; provide for. Amends secs. 6, 22b & 41 of 1979 PA 94 (MCL 388.1606 et seq.). TIE BAR WITH: SB 0903'26

CRM S06571'26_SB0904_INTR_1 iw0ok8

SENATE BILL NO. 904

A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 6, 22b, and 41 (MCL 388.1606, 388.1622b, and
388.1641), as amended by 2025 PA 15.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) "Center program" means a program operated by a 1
district or by an intermediate district for special education 2
pupils from several districts in programs for pupils with autism 3
spectrum disorder, pupils with severe cognitive impairment, pupils 4
with moderate cognitive impairment, pupils with severe multiple 5
impairments, pupils with hearing impairment, pupils with visual 6
April 21, 2026, Introduced by Senator CAMILLERI and referred to Committee on Appropriations.
2

CRM S06571'26_SB0904_INTR_1 iw0ok8
impairment, and pupils with physical impairment or other health 1
impairment. Programs for pupils with emotional impairment housed in 2
buildings that do not serve regular education pupils also qualify. 3
Unless otherwise approved by the department, a center program 4
either serves all constituent districts within an intermediate 5
district or serves several districts with less than 50% of the 6
pupils residing in the operating district. In addition, special 7
education center program pupils placed part-time in noncenter 8
programs to comply with the least restrictive environment 9
provisions of section 1412 of the individuals with disabilities 10
education act, 20 USC 1412, may be considered center program pupils 11
for pupil accounting purposes for the time scheduled in either a 12
center program or a noncenter program. 13
(2) "District and high school graduation rate" means the 14
annual completion and pupil dropout rate that is calculated by the 15
center pursuant to nationally recognized standards. 16
(3) "District and high school graduation report" means a 17
report of the number of pupils, excluding adult education 18
participants, in the district for the immediately preceding school 19
year, adjusted for those pupils who have transferred into or out of 20
the district or high school, who leave high school with a diploma 21
or other credential of equal status. 22
(4) "Membership", except as otherwise provided in this 23
article, means for a district, a public school academy, or an 24
intermediate district the sum of the product of .90 times the 25
number of full-time equated pupils in grades K to 12 actually 26
enrolled and in regular daily attendance in the district, public 27
school academy, or intermediate district on the pupil membership 28
count day for the current school year, plus the product of .10 29
3

CRM S06571'26_SB0904_INTR_1 iw0ok8
times the final audited count from the supplemental count day of 1
full-time equated pupils in grades K to 12 actually enrolled and in 2
regular daily attendance in the district, public school academy, or 3
intermediate district for the immediately preceding school year. A 4
district's, public school academy's, or intermediate district's 5
membership is adjusted as provided under section 25e for pupils who 6
enroll after the pupil membership count day in a strict discipline 7
academy operating under sections 1311b to 1311m of the revised 8
school code, MCL 380.1311b to 380.1311m. All pupil counts used in 9
this subsection are as determined by the department and calculated 10
by adding the number of pupils registered for attendance plus 11
pupils received by transfer and minus pupils lost as defined by 12
rules promulgated by the superintendent, and as corrected by a 13
subsequent department audit. The amount of the foundation allowance 14
for a pupil in membership is determined under section 20. In making 15
the calculation of membership, all of the following, as applicable, 16
apply to determining the membership of a district, a public school 17
academy, or an intermediate district: 18
(a) Except as otherwise provided in this subsection, and 19
pursuant to subsection (6), a pupil is counted in membership in the 20
pupil's educating district or districts. Except as otherwise 21
provided in this subsection, an individual pupil must not be 22
counted for more than a total of 1.0 full-time equated membership. 23
(b) If a pupil is educated in a district other than the 24
pupil's district of residence, if the pupil is not being educated 25
as part of a cooperative education program, if the pupil's district 26
of residence does not give the educating district its approval to 27
count the pupil in membership in the educating district, and if the 28
pupil is not covered by an exception specified in subsection (6) to 29
4

CRM S06571'26_SB0904_INTR_1 iw0ok8
the requirement that the educating district must have the approval 1
of the pupil's district of residence to count the pupil in 2
membership, the pupil is not counted in membership in any district. 3
(c) A special education pupil educated by the intermediate 4
district is counted in membership in the intermediate district. 5
(d) A pupil placed by a court or state agency in an on-grounds 6
program of a juvenile detention facility, a child caring 7
institution, or a mental health institution, or a pupil funded 8
under section 53a, is counted in membership in the district or 9
intermediate district approved by the department to operate the 10
program. 11
(e) A pupil enrolled in the Michigan Schools for the Deaf and 12
Blind is counted in membership in the pupil's intermediate district 13
of residence. 14
(f) A pupil enrolled in a career and technical education 15
program supported by a millage levied over an area larger than a 16
single district or in an area vocational-technical education 17
program established under section 690 of the revised school code, 18
MCL 380.690, is counted in membership only in the pupil's district 19
of residence. 20
(g) A pupil enrolled in a public school academy is counted in 21
membership in the public school academy. 22
(h) For the purposes of this section and section 6a, for a 23
cyber school, as that term is defined in section 551 of the revised 24
school code, MCL 380.551, that is in compliance with section 553a 25
of the revised school code, MCL 380.553a, a pupil's participation 26
in the cyber school's educational program is considered regular 27
daily attendance, and for a district or public school academy, a 28
pupil's participation in a virtual course as that term is defined 29
5

CRM S06571'26_SB0904_INTR_1 iw0ok8
in section 21f is considered regular daily attendance. Beginning 1
July 1, 2021, this subdivision is subject to section 8c. It is the 2
intent of the legislature that the immediately preceding sentence 3
apply retroactively and is effective July 1, 2021. For the purposes 4
of this subdivision, for a pupil enrolled in a cyber school, all of 5
the following apply with regard to the participation requirement as 6
described in this subdivision: 7
(i) Except as otherwise provided in this subdivision, the pupil 8
shall participate in each scheduled course on pupil membership 9
count day or supplemental count day, as applicable. If the pupil is 10
absent on pupil membership count day or supplemental count day, as 11
applicable, the pupil must attend and participate in class during 12
the next 10 consecutive school days if the absence was unexcused, 13
or during the next 30 calendar days if the absence was excused. 14
(ii) For a pupil who is not learning sequentially, 1 or more of 15
the following must be met on pupil membership count day or 16
supplemental count day, as applicable, for each scheduled course to 17
satisfy the participation requirement under this subdivision: 18
(A) The pupil attended a live lesson from the teacher. 19
(B) The pupil logged into a lesson or lesson activity and the 20
login can be documented. 21
(C) The pupil and teacher engaged in a subject-oriented 22
telephone conversation. 23
(D) There is documentation of an email dialogue between the 24
pupil and teacher. 25
(E) There is documentation of activity or work between the 26
learning coach and pupil. 27
(F) An alternate form of attendance as determined and agreed 28
upon by the cyber school and the pupil membership auditor was met. 29
6

CRM S06571'26_SB0904_INTR_1 iw0ok8
(iii) For a pupil using sequential learning, the participation 1
requirement under this subdivision is satisfied if either of the 2
following occurs: 3
(A) Except as otherwise provided in this sub-subparagraph, the 4
pupil and the teacher of record or mentor complete a 2-way 5
interaction for 1 course during the week on which pupil membership 6
count day or supplemental count day, as applicable, occurs, and the 7
3 consecutive weeks following that week. However, if a school break 8
is scheduled during any of the weeks described in this sub-9
subparagraph that is 4 or more days in length or instruction has 10
been canceled districtwide during any of the weeks described in 11
this sub-subparagraph for 3 or more school days, the district is 12
not required to ensure that the pupil and the teacher of record or 13
mentor completed a 2-way interaction for that week. As used in this 14
sub-subparagraph: 15
(I) "2-way interaction" means the communication that occurs 16
between the teacher of record or mentor and pupil, where 1 party 17
initiates communication and a response from the other party follows 18
that communication. Responses as described in this sub-sub-19
subparagraph must be to the communication initiated by the teacher 20
of record or mentor, and not some other action taken. This 21
interaction may occur through, but is not limited to, means such as 22
email, telephone, instant messaging, or face-to-face conversation. 23
A parent- or legal-guardian-facilitated 2-way interaction is 24
considered a 2-way interaction if the pupil is in any of grades K 25
to 5 and does not yet possess the skills necessary to participate 26
in 2-way interactions unassisted. The interactions described in 27
this sub-sub-subparagraph must relate to a virtual course on the 28
pupil's schedule and pertain to course content or progress. 29
7

CRM S06571'26_SB0904_INTR_1 iw0ok8
(II) "Mentor" means a professional employee of the district 1
who monitors the pupil's progress, ensures the pupil has access to 2
needed technology, is available for assistance, and ensures access 3
to the teacher of record. A mentor may also be the teacher of 4
record if the mentor meets the definition of a teacher of record 5
under this sub-subparagraph and the district is the provider for 6
the course. 7
(III) "Teacher of record" means a teacher to whom all of the 8
following apply: 9
(1) The teacher is responsible for providing instruction, 10
determining instructional methods for each pupil, diagnosing 11
learning needs, assessing pupil learning, prescribing intervention 12
strategies and modifying lessons, reporting outcomes, and 13
evaluating the effects of instruction and support strategies. The 14
teacher of record may coordinate the distribution and assignment of 15
the responsibilities described in this sub-sub-sub-subparagraph 16
with other teachers participating in the instructional process for 17
a course. 18
(2) The teacher is certified for the grade level or is working 19
under a valid substitute permit, authorization, or approval issued 20
by the department. 21
(3) The teacher has a personnel identification code provided 22
by the center. 23
(IV) "Week" means a period that starts on Wednesday and ends 24
the following Tuesday. 25
(B) The pupil completes a combination of 1 or more of the 26
following activities for each scheduled course on pupil membership 27
count day or supplemental count day, as applicable: 28
(I) Documented attendance in a virtual course where 29
8

CRM S06571'26_SB0904_INTR_1 iw0ok8
synchronous, live instruction occurred with the teacher. 1
(II) Documented completion of a course assignment. 2
(III) Documented completion of a course lesson or lesson 3
activity. 4
(IV) Documented pupil access to an ongoing lesson, which does 5
not include a login. 6
(V) Documented physical attendance on pupil membership count 7
day or supplemental count day, as applicable, in each scheduled 8
course, if the pupil will attend at least 50% of the instructional 9
time for each scheduled course on-site, face-to-face with the 10
teacher of record. As used in this sub-sub-subparagraph, "teacher 11
of record" means that term as defined in subparagraph (iii)(A). 12
(iv) For purposes of subparagraph (iii), each scheduled course 13
currently being attempted by the pupil, rather than every course on 14
the pupil's schedule for the entire term, is considered a part of 15
each scheduled course for the pupil. 16
(i) For a new district or public school academy beginning its 17
operation after December 31, 1994, membership for the first 2 full 18
or partial fiscal years of operation is determined as follows: 19
(i) If operations begin before the pupil membership count day 20
for the fiscal year, membership is the average number of full-time 21
equated pupils in grades K to 12 actually enrolled and in regular 22
daily attendance on the pupil membership count day for the current 23
school year and on the supplemental count day for the current 24
school year, as determined by the department and calculated by 25
adding the number of pupils registered for attendance on the pupil 26
membership count day plus pupils received by transfer and minus 27
pupils lost as defined by rules promulgated by the superintendent, 28
and as corrected by a subsequent department audit, plus the final 29
9

CRM S06571'26_SB0904_INTR_1 iw0ok8
audited count from the supplemental count day for the current 1
school year, and dividing that sum by 2. 2
(ii) If operations begin after the pupil membership count day 3
for the fiscal year and not later than the supplemental count day 4
for the fiscal year, membership is the final audited count of the 5
number of full-time equated pupils in grades K to 12 actually 6
enrolled and in regular daily attendance on the supplemental count 7
day for the current school year. 8
(j) If a district is the authorizing body for a public school 9
academy, then, in the first school year in which pupils are counted 10
in membership on the pupil membership count day in the public 11
school academy, the determination of the district's membership 12
excludes from the district's pupil count for the immediately 13
preceding supplemental count day any pupils who are counted in the 14
public school academy on that first pupil membership count day who 15
were also counted in the district on the immediately preceding 16
supplemental count day. 17
(k) For an extended school year program approved by the 18
superintendent, a pupil enrolled, but not scheduled to be in 19
regular daily attendance, on a pupil membership count day, is 20
counted in membership. 21
(l) To be counted in membership, a pupil must meet the minimum 22
age requirement to be eligible to attend school under section 1147 23
of the revised school code, MCL 380.1147, and must be less than 20 24
years of age on September 1 of the school year except as follows: 25
(i) A special education pupil who is enrolled and receiving 26
instruction in a special education program or service approved by 27
the department, who does not have a high school diploma, and who is 28
less than 26 years of age as of September 1 of the current school 29
10

CRM S06571'26_SB0904_INTR_1 iw0ok8
year is counted in membership. 1
(ii) A pupil who is determined by the department to meet all of 2
the following may be counted in membership: 3
(A) Is enrolled in a public school academy or an alternative 4
education high school diploma program, that is primarily focused on 5
educating pupils with extreme barriers to education, such as being 6
homeless as that term is defined under 42 USC 11302. 7
(B) Had dropped out of school. 8
(C) Is less than 22 years of age as of September 1 of the 9
current school year. 10
(iii) If a child does not meet the minimum age requirement to be 11
eligible to attend school for that school year under section 1147 12
of the revised school code, MCL 380.1147, but will be 5 years of 13
age not later than December 1 of that school year, the district may 14
count the child in membership for that school year if the parent or 15
legal guardian has notified the district in writing that the parent 16
or legal guardian intends to enroll the child in kindergarten for 17
that school year. 18
(m) An individual who has achieved a high school diploma is 19
not counted in membership. 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 or a jobs program funded under former section 25
107b, administered by the department of labor and economic 26
opportunity, or participating in any successor of either of those 2 27
programs, is not counted in membership. 28
(n) If a pupil counted in membership in a public school 29
11

CRM S06571'26_SB0904_INTR_1 iw0ok8
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
12

CRM S06571'26_SB0904_INTR_1 iw0ok8
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
13

CRM S06571'26_SB0904_INTR_1 iw0ok8
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
14

CRM S06571'26_SB0904_INTR_1 iw0ok8
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
15

CRM S06571'26_SB0904_INTR_1 iw0ok8
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 membership figure calculated under this 29
16

CRM S06571'26_SB0904_INTR_1 iw0ok8
subdivision. The membership figure calculated under this 1
subdivision 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
17

CRM S06571'26_SB0904_INTR_1 iw0ok8
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 counted as 1/12 14
of a full-time equated membership for each month that the district 15
operating the program reports that the pupil was enrolled in the 16
program and was in full attendance or based on the number of 17
successfully completed courses by the pupil with each course 18
equivalent to 1/12 of a full-time equated membership. A district 19
may claim more than 1/12 of a full-time equated membership within a 20
month for an enrolled pupil who was in full attendance and 21
successfully completed more than 1 required course. However, if the 22
special membership counting provisions under this subdivision and 23
the operation of the other membership counting provisions under 24
this subsection result in a pupil being counted as more than 1.0 25
FTE in a fiscal year, the payment made for the pupil under sections 26
22a and 22b must not be based on more than 1.0 FTE for that pupil, 27
and any portion of an FTE for that pupil that exceeds 1.0 is 28
instead paid under section 25g. The district operating the program 29
18

CRM S06571'26_SB0904_INTR_1 iw0ok8
shall report to the center the number of pupils who were enrolled 1
in the program and were in full attendance for a month not later 2
than 30 days after the end of the month. A district shall not 3
report a pupil as being in full attendance for a month unless both 4
of the following are met: 5
(i) A personalized learning plan is in place on or before the 6
first school day of the month for the first month the pupil 7
participates in the program. 8
(ii) Either of the following is met: 9
(A) The pupil meets the district's definition under section 10
23a of satisfactory monthly progress for that month or, if the 11
pupil does not meet that definition of satisfactory monthly 12
progress for that month, the pupil did meet that definition of 13
satisfactory monthly progress in the immediately preceding month 14
and appropriate interventions, as defined by the district, are 15
implemented within 10 school days after it is determined that the 16
pupil does not meet that definition of satisfactory monthly 17
progress. 18
(B) For the first 2 months that the pupil participates in the 19
program, the pupil earns 0.25 credit by the end of the second 20
month. A pupil described in this sub-subparagraph may be 21
retroactively reported as being in full attendance for the first 22
month that the pupil participated in the program. 23
(ee) A pupil participating in a virtual course under section 24
21f is counted in membership in the district enrolling the pupil. 25
(ff) If a public school academy that is not in its first or 26
second year of operation closes at the end of a school year and 27
does not reopen for the next school year, the department shall 28
adjust the membership count of the district or other public school 29
19

CRM S06571'26_SB0904_INTR_1 iw0ok8
academy in which a former pupil of the closed public school academy 1
enrolls and is in regular daily attendance for the next school year 2
to ensure that the district or other public school academy receives 3
the same amount of membership aid for the pupil as if the pupil 4
were counted in the district or other public school academy on the 5
supplemental count day of the preceding school year. 6
(gg) If a special education pupil is expelled under section 7
1311 or 1311a of the revised school code, MCL 380.1311 and 8
380.1311a, and is not in attendance on the pupil membership count 9
day because of the expulsion, and if the pupil remains enrolled in 10
the district and resumes regular daily attendance during that 11
school year, the district's membership is adjusted to count the 12
pupil in membership as if the pupil had been in attendance on the 13
pupil membership count day. 14
(hh) A pupil enrolled in a community district is counted in 15
membership in the community district. 16
(ii) A part-time pupil enrolled in a nonpublic school in 17
grades K to 12 in accordance with section 166b must not be counted 18
as more than 0.75 of a full-time equated membership. 19
(jj) A district that borders another state or a public school 20
academy that operates at least grades 9 to 12 and is located within 21
20 miles of a border with another state may count in membership a 22
pupil who is enrolled in a course at a college or university that 23
is located in the bordering state and within 20 miles of the border 24
with this state if all of the following are met: 25
(i) The pupil would meet the definition of an eligible student 26
under the postsecondary enrollment options act, 1996 PA 160, MCL 27
388.511 to 388.524, if the course were an eligible course under 28
that act. 29
20

CRM S06571'26_SB0904_INTR_1 iw0ok8
(ii) The course in which the pupil is enrolled would meet the 1
definition of an eligible course under the postsecondary enrollment 2
options act, 1996 PA 160, MCL 388.511 to 388.524, if the course 3
were provided by an eligible postsecondary institution under that 4
act. 5
(iii) The department determines that the college or university 6
is an institution that, in the other state, fulfills a function 7
comparable to a state university or community college, as those 8
terms are defined in section 3 of the postsecondary enrollment 9
options act, 1996 PA 160, MCL 388.513, or is an independent 10
nonprofit degree-granting college or university. 11
(iv) The district or public school academy pays for a portion 12
of the pupil's tuition at the college or university in an amount 13
equal to the eligible charges that the district or public school 14
academy would pay to an eligible postsecondary institution under 15
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 16
to 388.524, as if the course were an eligible course under that 17
act. 18
(v) The district or public school academy awards high school 19
credit to a pupil who successfully completes a course as described 20
in this subdivision. 21
(kk) A pupil enrolled in a middle college program may be 22
counted for more than a total of 1.0 full-time equated membership 23
for any of the school years in which the pupil is enrolled in the 24
middle college program, but the total full-time equated membership 25
for that pupil for all of the school years in which the pupil is 26
enrolled in high school must not be greater than 5.00 full-time 27
equated membership if the pupil is enrolled in more than the 28
minimum number of instructional days and hours required under 29
21

CRM S06571'26_SB0904_INTR_1 iw0ok8
section 101 and the pupil is expected to complete the 5-year 1
program with both a high school diploma and at least 60 2
transferable college credits or is expected to earn an associate's 3
degree in fewer than 5 years. A pupil who graduates with both a 4
high school diploma and at least 60 transferable college credits or 5
an associate degree at least 1 semester early is considered to have 6
completed the middle college program in fewer than 5 years. 7
(ll) If a district's or public school academy's membership for 8
a particular fiscal year, as otherwise calculated under this 9
subsection, includes pupils counted in membership who are enrolled 10
under section 166b, all of the following apply for the purposes of 11
this subdivision: 12
(i) If the district's or public school academy's membership for 13
pupils counted under section 166b equals or exceeds 5% of the 14
district's or public school academy's membership for pupils not 15
counted in membership under section 166b in the immediately 16
preceding fiscal year, then the growth in the district's or public 17
school academy's membership for pupils counted under section 166b 18
must not exceed 10%. 19
(ii) If the district's or public school academy's membership 20
for pupils counted under section 166b is less than 5% of the 21
district's or public school academy's membership for pupils not 22
counted in membership under section 166b in the immediately 23
preceding fiscal year, then the district's or public school 24
academy's membership for pupils counted under section 166b must not 25
exceed the greater of the following: 26
(A) Five percent of the district's or public school academy's 27
membership for pupils not counted in membership under section 166b. 28
(B) Ten percent more than the district's or public school 29
22

CRM S06571'26_SB0904_INTR_1 iw0ok8
academy's membership for pupils counted under section 166b in the 1
immediately preceding fiscal year. 2
(iii) If 1 or more districts consolidate or are parties to an 3
annexation, then the calculations under subparagraphs (i) and (ii) 4
must be applied to the combined total membership for pupils counted 5
in those districts for the fiscal year immediately preceding the 6
consolidation or annexation. 7
(5) "Public school academy" means that term as defined in 8
section 5 of the revised school code, MCL 380.5. 9
(6) "Pupil" means an individual in membership in a public 10
school. A district must have the approval of the pupil's district 11
of residence to count the pupil in membership, except approval by 12
the pupil's district of residence is not required for any of the 13
following: 14
(a) A nonpublic part-time pupil enrolled in grades K to 12 in 15
accordance with section 166b. 16
(b) A pupil receiving 1/2 or less of the pupil's instruction 17
in a district other than the pupil's district of residence. 18
(c) A pupil enrolled in a public school academy. 19
(d) A pupil enrolled in a district other than the pupil's 20
district of residence if the pupil is enrolled in accordance with 21
section 105 or 105c. 22
(e) A pupil who has made an official written complaint or 23
whose parent or legal guardian has made an official written 24
complaint to law enforcement officials and to school officials of 25
the pupil's district of residence that the pupil has been the 26
victim of a criminal sexual assault or other serious assault, if 27
the official complaint either indicates that the assault occurred 28
at school or that the assault was committed by 1 or more other 29
23

CRM S06571'26_SB0904_INTR_1 iw0ok8
pupils enrolled in the school the pupil would otherwise attend in 1
the district of residence or by an employee of the district of 2
residence. A person who intentionally makes a false report of a 3
crime to law enforcement officials for the purposes of this 4
subdivision is subject to section 411a of the Michigan penal code, 5
1931 PA 328, MCL 750.411a, which provides criminal penalties for 6
that conduct. As used in this subdivision: 7
(i) "At school" means in a classroom, elsewhere on school 8
premises, on a school bus or other school-related vehicle, or at a 9
school-sponsored activity or event whether or not it is held on 10
school premises. 11
(ii) "Serious assault" means an act that constitutes a felony 12
violation of chapter XI of the Michigan penal code, 1931 PA 328, 13
MCL 750.81 to 750.90h, or that constitutes an assault and 14
infliction of serious or aggravated injury under section 81a of the 15
Michigan penal code, 1931 PA 328, MCL 750.81a. 16
(f) A pupil whose district of residence changed after the 17
pupil membership count day and before the supplemental count day 18
and who continues to be enrolled on the supplemental count day as a 19
nonresident in the district in which the pupil was enrolled as a 20
resident on the pupil membership count day of the same school year. 21
(g) A pupil enrolled in an alternative education program 22
operated by a district other than the pupil's district of residence 23
who meets 1 or more of the following: 24
(i) The pupil has been suspended or expelled from the pupil's 25
district of residence for any reason, including, but not limited 26
to, a suspension or expulsion under section 1310, 1311, or 1311a of 27
the revised school code, MCL 380.1310, 380.1311, and 380.1311a. 28
(ii) The pupil had previously dropped out of school. 29
24

CRM S06571'26_SB0904_INTR_1 iw0ok8
(iii) The pupil is pregnant or is a parent. 1
(iv) The pupil has been referred to the program by a court. 2
(h) A pupil enrolled in the Michigan Virtual School, for the 3
pupil's enrollment in the Michigan Virtual School. 4
(i) A pupil who is the child of a person who works at the 5
district or who is the child of a person who worked at the district 6
as of the time the pupil first enrolled in the district but who no 7
longer works at the district due to a workforce reduction. As used 8
in this subdivision, "child" includes an adopted child, stepchild, 9
or legal ward. 10
(j) An expelled pupil who has been denied reinstatement by the 11
expelling district and is reinstated by another school board under 12
section 1311 or 1311a of the revised school code, MCL 380.1311 and 13
380.1311a. 14
(k) A pupil enrolled in a district other than the pupil's 15
district of residence in a middle college program if the pupil's 16
district of residence and the enrolling district are both 17
constituent districts of the same intermediate district. 18
(l) A pupil enrolled in a district other than the pupil's 19
district of residence who attends a United States Olympic Education 20
Center. 21
(m) A pupil enrolled in a district other than the pupil's 22
district of residence under section 1148(2) of the revised school 23
code, MCL 380.1148. 24
(n) A pupil who enrolls in a district other than the pupil's 25
district of residence as a result of the pupil's school not making 26
adequate yearly progress under the no child left behind act of 27
2001, Public Law 107-110, or the every student succeeds act, Public 28
Law 114-95. However, if a district educates pupils who reside in 29
25

CRM S06571'26_SB0904_INTR_1 iw0ok8
another district and if the primary instructional site for those 1
pupils is established by the educating district after 2009-2010 and 2
is located within the boundaries of that other district, the 3
educating district must have the approval of that other district to 4
count those pupils in membership. 5
(7) "Pupil membership count day" of a district or intermediate 6
district means: 7
(a) Except as provided in subdivision (b) or (c), either of 8
the following: 9
(i) The first Wednesday in October each school year. 10
(ii) For a district or building in which school is not in 11
session on the Wednesday described in subparagraph (i) due to 12
conditions not within the control of school authorities, with the 13
approval of the superintendent, the immediately following day on 14
which school is in session in the district or building. 15
(b) Except as otherwise provided in subdivision (c), for a 16
district or intermediate district maintaining school during the 17
entire school year, the following days: 18
(i) Fourth Wednesday in July. 19
(ii) First Wednesday in October. 20
(iii) Second Wednesday in February. 21
(iv) Fourth Wednesday in April. 22
(c) If a date listed in subdivision (a) or (b) is on a day of 23
religious or cultural significance, as determined by the district 24
or intermediate district, the immediately following day on which 25
school is in session in the district or building. 26
(8) "Pupils in grades K to 12 actually enrolled and in regular 27
daily attendance" means, except as otherwise provided in this 28
section, pupils in grades K to 12 in attendance and receiving 29
26

CRM S06571'26_SB0904_INTR_1 iw0ok8
instruction in all classes for which they are enrolled on the pupil 1
membership count day or the supplemental count day, as applicable. 2
Except as otherwise provided in this section and subsection, a 3
pupil who is absent from any of the classes in which the pupil is 4
enrolled on the pupil membership count day or supplemental count 5
day and who does not attend each of those classes during the 10 6
consecutive school days immediately following the pupil membership 7
count day or supplemental count day, except for a pupil who has 8
been excused by the district, is not counted as 1.0 full-time 9
equated membership. Except as otherwise provided in this section, a 10
pupil who is excused from attendance on the pupil membership count 11
day or supplemental count day and who fails to attend each of the 12
classes in which the pupil is enrolled within 30 calendar days 13
after the pupil membership count day or supplemental count day is 14
not counted as 1.0 full-time equated membership. Except as 15
otherwise provided in this section, in addition, a pupil who was 16
enrolled and in attendance in a district, intermediate district, or 17
public school academy before the pupil membership count day or 18
supplemental count day of a particular year but was expelled or 19
suspended on the pupil membership count day or supplemental count 20
day is only counted as 1.0 full-time equated membership if the 21
pupil resumed attendance in the district, intermediate district, or 22
public school academy within 45 days after the pupil membership 23
count day or supplemental count day of that particular year. Except 24
as otherwise provided in this section, a pupil not counted as 1.0 25
full-time equated membership due to an absence from a class is 26
counted as a prorated membership for the classes the pupil 27
attended. For purposes of this subsection: 28
(a) "Appropriately placed" means holding a valid Michigan 29
27

CRM S06571'26_SB0904_INTR_1 iw0ok8
educator credential with the required grade range and discipline or 1
subject area for the assignment, as defined by the superintendent 2
of public instruction. 3
(b) "Class" means either of the following, as applicable: 4
(i) A period of time in 1 day when pupils and an individual who 5
is appropriately placed under a valid certificate, substitute 6
permit, authorization, or approval issued by the department, are 7
together and instruction is taking place. This subdivision does not 8
apply for the 2024-2025 and 2025-2026 school years. 9
(ii) For the 2024-2025 and 2025-2026 school years only, a 10
period of time in 1 day when pupils and a certificated teacher, a 11
teacher engaged to teach under section 1233b of the revised school 12
code, MCL 380.1233b, or an individual working under a valid 13
substitute permit, authorization, or approval issued by the 14
department are together and instruction is taking place. 15
(9) "Rule" means a rule promulgated pursuant to the 16
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 17
24.328. 18
(10) "The revised school code" means the revised school code, 19
1976 PA 451, MCL 380.1 to 380.1852. 20
(11) "School district of the first class", "first class school 21
district", and "district of the first class" mean, for the purposes 22
of this article only, a district that had at least 40,000 pupils in 23
membership for the immediately preceding fiscal year. 24
(12) "School fiscal year" means a fiscal year that commences 25
July 1 and continues through June 30. 26
(13) "State board" means the state board of education. 27
(14) "Superintendent", unless the context clearly refers to a 28
district or intermediate district superintendent, means the 29
28

CRM S06571'26_SB0904_INTR_1 iw0ok8
superintendent of public instruction described in section 3 of 1
article VIII of the state constitution of 1963. 2
(15) "Supplemental count day" means the day on which the 3
supplemental pupil count is conducted under section 6a. 4
(16) "Tuition pupil" means a pupil of school age attending 5
school in a district other than the pupil's district of residence 6
for whom tuition may be charged to the district of residence. 7
Tuition pupil does not include a pupil who is a special education 8
pupil, a pupil described in subsection (6)(d) to (n), or a pupil 9
whose parent or guardian voluntarily enrolls the pupil in a 10
district that is not the pupil's district of residence. A pupil's 11
district of residence shall not require a high school tuition 12
pupil, as provided under section 111, to attend another school 13
district after the pupil has been assigned to a school district. 14
(17) "State school aid fund" means the state school aid fund 15
established in section 11 of article IX of the state constitution 16
of 1963. 17
(18) "Taxable value" means, except as otherwise provided in 18
this article, the taxable value of property as determined under 19
section 27a of the general property tax act, 1893 PA 206, MCL 20
211.27a. 21
(19) "Textbook" means a book, electronic book, or other 22
instructional print or electronic resource that is selected and 23
approved by the governing board of a district and that contains a 24
presentation of principles of a subject, or that is a literary work 25
relevant to the study of a subject required for the use of 26
classroom pupils, or another type of course material that forms the 27
basis of classroom instruction. 28
(20) "Total state aid" or "total state school aid", except as 29
29

CRM S06571'26_SB0904_INTR_1 iw0ok8
otherwise provided in this article, means the total combined amount 1
of all funds due to a district, intermediate district, or other 2
entity under this article. 3
(21) "Weighted pupil membership" means that term as calculated 4
in this subsection. For the purposes of calculations under this 5
subsection, the base weighted pupil membership for a district is 0. 6
All of the following apply to the weighted pupil membership under 7
this subsection: 8
(a) For each full-time English language learner counted in 9
membership in a district in the immediately preceding fiscal year, 10
the weighted pupil membership for that district must be increased 11
as follows: 12
(i) For a full-time equivalent English language learner who was 13
assessed in the immediately preceding fiscal year under the WIDA 14
ACCESS for English language learners or the WIDA Alternate ACCESS 15
with a WIDA ACCESS or WIDA Alternate ACCESS composite score between 16
1.0 and 1.9, as applicable to each assessment, an increase of 17
0.1687. The increase under this subparagraph must be adjusted 18
annually as follows until the increase equals 0.75: 19
(A) For 2027-2028, the weighted pupil membership under this 20
subparagraph must be increased to 0.2063. 21
(B) For 2028-2029, the weighted pupil membership under this 22
subparagraph must be increased to 0.2475. 23
(C) For 2029-2030, the weighted pupil membership under this 24
subparagraph must be increased to 0.2888. 25
(D) For 2030-2031, the weighted pupil membership under this 26
subparagraph must be increased to 0.3300. 27
(E) For 2031-2032, the weighted pupil membership under this 28
subparagraph must be increased to 0.3713. 29
30

CRM S06571'26_SB0904_INTR_1 iw0ok8
(F) For 2032-2033, the weighted pupil membership under this 1
subparagraph must be increased to 0.4125. 2
(G) For 2033-2034, the weighted pupil membership under this 3
subparagraph must be increased to 0.4538. 4
(H) For 2034-2035, the weighted pupil membership under this 5
subparagraph must be increased to 0.4950. 6
(I) For 2035-2036, the weighted pupil membership under this 7
subparagraph must be increased to 0.5363. 8
(J) For 2036-2037, the weighted pupil membership under this 9
subparagraph must be increased to 0.5775. 10
(K) For 2037-2038, the weighted pupil membership under this 11
subparagraph must be increased to 0.6188 12
(L) For 2038-2039, the weighted pupil membership under this 13
subparagraph must be increased to 0.6600. 14
(M) For 2039-2040, the weighted pupil membership under this 15
subparagraph must be increased to 0.7013. 16
(N) Beginning in 2040-2041 and every fiscal year thereafter, 17
the weighted pupil membership under this subparagraph must be 18
increased to 0.75. 19
(ii) For a full-time equivalent English language learner who 20
was assessed in the immediately preceding fiscal year under the 21
WIDA ACCESS for English language learners or the WIDA Alternate 22
ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score 23
between 2.0 and 2.9, as applicable to each assessment, an increase 24
of 0.1165. The increase under this subparagraph must be adjusted 25
annually as follows until the increase equals 0.50: 26
(A) For 2027-2028, the weighted pupil membership under this 27
subparagraph must be increased to 0.1425. 28
(B) For 2028-2029, the weighted pupil membership under this 29
31

CRM S06571'26_SB0904_INTR_1 iw0ok8
subparagraph must be increased to 0.1700. 1
(C) For 2029-2030, the weighted pupil membership under this 2
subparagraph must be increased to 0.1975. 3
(D) For 2030-2031, the weighted pupil membership under this 4
subparagraph must be increased to 0.2250. 5
(E) For 2031-2032, the weighted pupil membership under this 6
subparagraph must be increased to 0.2525. 7
(F) For 2032-2033, the weighted pupil membership under this 8
subparagraph must be increased to 0.2800. 9
(G) For 2033-2034, the weighted pupil membership under this 10
subparagraph must be increased to 0.3075. 11
(H) For 2034-2035, the weighted pupil membership under this 12
subparagraph must be increased to 0.3350. 13
(I) For 2035-2036, the weighted pupil membership under this 14
subparagraph must be increased to 0.3625. 15
(J) For 2036-2037, the weighted pupil membership under this 16
subparagraph must be increased to 0.3900. 17
(K) For 2037-2038, the weighted pupil membership under this 18
subparagraph must be increased to 0.4175. 19
(L) For 2038-2039, the weighted pupil membership under this 20
subparagraph must be increased to 0.4450. 21
(M) For 2039-2040, the weighted pupil membership under this 22
subparagraph must be increased to 0.4725. 23
(N) Beginning in 2040-2041 and every fiscal year thereafter, 24
the weighted pupil membership under this subparagraph must be 25
increased to 0.50. 26
(iii) For a full-time equivalent English language learner who 27
was assessed in the immediately preceding fiscal year under the 28
WIDA ACCESS for English language learners or the WIDA Alternate 29
32

CRM S06571'26_SB0904_INTR_1 iw0ok8
ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score 1
between 3.0 and 3.9, as applicable to each assessment, an increase 2
of 0.0190. The increase under this subparagraph must be adjusted 3
annually as follows until the increase equals 0.35: 4
(A) For 2027-2028, the weighted pupil membership under this 5
subparagraph must be increased to 0.0429. 6
(B) For 2028-2029, the weighted pupil membership under this 7
subparagraph must be increased to 0.0665. 8
(C) For 2029-2030, the weighted pupil membership under this 9
subparagraph must be increased to 0.0901. 10
(D) For 2030-2031, the weighted pupil membership under this 11
subparagraph must be increased to 0.1138. 12
(E) For 2031-2032, the weighted pupil membership under this 13
subparagraph must be increased to 0.1374. 14
(F) For 2032-2033, the weighted pupil membership under this 15
subparagraph must be increased to 0.1610. 16
(G) For 2033-2034, the weighted pupil membership under this 17
subparagraph must be increased to 0.1846. 18
(H) For 2034-2035, the weighted pupil membership under this 19
subparagraph must be increased to 0.2083. 20
(I) For 2035-2036, the weighted pupil membership under this 21
subparagraph must be increased to 0.2319. 22
(J) For 2036-2037, the weighted pupil membership under this 23
subparagraph must be increased to 0.2555. 24
(K) For 2037-2038, the weighted pupil membership under this 25
subparagraph must be increased to 0.2791. 26
(L) For 2038-2039, the weighted pupil membership under this 27
subparagraph must be increased to 0.3028. 28
(M) For 2039-2040, the weighted pupil membership under this 29
33

CRM S06571'26_SB0904_INTR_1 iw0ok8
subparagraph must be increased to 0.3264. 1
(N) Beginning in 2040-2041 and every fiscal year thereafter, 2
the weighted pupil membership under this subparagraph must be 3
increased to 0.35. 4
(b) For each economically disadvantaged pupil counted in 5
membership in a district, the weighted pupil membership for that 6
district must be increased as follows: 7
(i) For the purpose of this subparagraph, the department shall 8
determine the number of pupils in membership who are economically 9
disadvantaged as the greatest of the following: 10
(A) The number of membership pupils in the district who are 11
determined to be economically disadvantaged, as reported to the 12
center in the form and manner prescribed by the center not later 13
than the fifth Wednesday after the pupil membership count day of 14
the immediately preceding fiscal year. 15
(B) If the district is in the community eligibility program, 16
the number of pupils determined to be eligible based on the product 17
of the identified student percentage multiplied by the total number 18
of pupils in the district, as reported to the center in the form 19
and manner prescribed by the center not later than the fifth 20
Wednesday after the pupil membership count day of the immediately 21
preceding fiscal year. These calculations must be made at the 22
building level. This sub-subparagraph applies only to an eligible 23
district for the fiscal year immediately following the first fiscal 24
year in which it is in the community eligibility program. As used 25
in this sub-subparagraph, "identified student percentage" means the 26
quotient of the number of pupils in an eligible district who are 27
determined to be economically disadvantaged, as reported to the 28
center in a form and manner prescribed by the center not later than 29
34

CRM S06571'26_SB0904_INTR_1 iw0ok8
the fifth Wednesday after the pupil membership count day in the 1
fiscal year preceding the first fiscal year in which the eligible 2
district is in the community eligibility program, divided by the 3
total number of pupils counted in an eligible district on the pupil 4
membership count day in the fiscal year preceding the first fiscal 5
year in which the eligible district is in the community eligibility 6
program. 7
(C) If the district began operations as a district after the 8
pupil membership count day of the current fiscal year, the number 9
of membership pupils in the district who are determined to be 10
economically disadvantaged, as reported to the center in the form 11
and manner prescribed by the center not later than the fifth 12
Wednesday after the supplemental count day of the current fiscal 13
year. 14
(D) If, for a particular fiscal year, the number of membership 15
pupils in a district who are determined under sub-subparagraph (A) 16
to be economically disadvantaged or to be eligible based on the 17
identified student percentage varies by more than 20 percentage 18
points from the number of those pupils in the district as 19
calculated under sub-subparagraph (A) for the immediately preceding 20
fiscal year caused by an egregious reporting error by the district, 21
the department may choose to have the calculations under sub-22
subparagraph (A) instead be made using the number of membership 23
pupils in the district who are determined to be economically 24
disadvantaged, as reported to the center in the form and manner 25
prescribed by the center not later than the fifth Wednesday after 26
the supplemental count day of the immediately preceding fiscal 27
year. As used in this sub-subparagraph, "identified student 28
percentage" means that term as defined in sub-subparagraph (B). 29
35

CRM S06571'26_SB0904_INTR_1 iw0ok8
(ii) Each district or public school academy must be assigned an 1
opportunity index score each fiscal year, the value of which is the 2
quotient of the number of economically disadvantaged pupils as 3
determined under this subdivision for the district or public school 4
academy and the total number of pupils in the district or public 5
school academy in the immediately preceding fiscal year, multiplied 6
by 100 and rounded up to the nearest whole number. Each district or 7
public school academy must be assigned an opportunity index band as 8
follows: 9
(A) A district with an opportunity index score greater than or 10
equal to 0 but less than 20 must be assigned to band 1 and shall 11
receive an additional weighted pupil membership of at least 0.1692 12
and not more than 0.1741 for each economically disadvantaged pupil. 13
The additional weighted pupil membership under this sub-14
subparagraph must be an amount equal to the district's opportunity 15
index score minus 1, multiplied by the band adjustment factor 16
applicable to this subdivision, plus 0.1692 multiplied by the 17
number of pupils identified as economically disadvantaged under 18
this sub-subparagraph. The additional weighted pupil membership 19
under this sub-subparagraph must be increased as follows until it 20
reaches between .35 and .36 per economically disadvantaged pupil: 21
(I) For 2027-2028, a district assigned to band 1 must receive 22
an additional weighted pupil membership of at least 0.1811 and not 23
more than 0.1863 for each economically disadvantaged pupil. 24
(II) For 2028-2029, a district assigned to band 1 must receive 25
an additional weighted pupil membership of at least 0.1943 and not 26
more than 0.1998 for each economically disadvantaged pupil. 27
(III) For 2029-2030, a district assigned to band 1 must 28
receive an additional weighted pupil membership of at least 0.2074 29
36

CRM S06571'26_SB0904_INTR_1 iw0ok8
and not more than 0.2133 for each economically disadvantaged pupil. 1
(IV) For 2030-2031, a district assigned to band 1 must receive 2
an additional weighted pupil membership of at least 0.2205 and not 3
more than 0.2268 for each economically disadvantaged pupil. 4
(V) For 2031-2032, a district assigned to band 1 must receive 5
an additional weighted pupil membership of at least 0.2336 and not 6
more than 0.2403 for each economically disadvantaged pupil. 7
(VI) For 2032-2033, a district assigned to band 1 must receive 8
an additional weighted pupil membership of at least 0.2468 and not 9
more than 0.2538 for each economically disadvantaged pupil. 10
(VII) For 2033-2034, a district assigned to band 1 must 11
receive an additional weighted pupil membership of at least 0.2599 12
and not more than 0.2673 for each economically disadvantaged pupil. 13
(VIII) For 2034-2035, a district assigned to band 1 must 14
receive an additional weighted pupil membership of at least 0.2730 15
and not more than 0.2808 for each economically disadvantaged pupil. 16
(IX) For 2035-2036, a district assigned to band 1 must receive 17
an additional weighted pupil membership of at least 0.2861 and not 18
more than 0.2943 for each economically disadvantaged pupil. 19
(X) For 2036-2037, a district assigned to band 1 must receive 20
an additional weighted pupil membership of at least 0.2993 and not 21
more than 0.3078 for each economically disadvantaged pupil. 22
(XI) For 2037-2038, a district assigned to band 1 must receive 23
an additional weighted pupil membership of at least 0.3124 and not 24
more than 0.3213 for each economically disadvantaged pupil. 25
(XII) For 2038-2039, a district assigned to band 1 must 26
receive an additional weighted pupil membership of at least 0.3255 27
and not more than 0.3348 for each economically disadvantaged pupil. 28
(XIII) For 2039-2040, a district assigned to band 1 must 29
37

CRM S06571'26_SB0904_INTR_1 iw0ok8
receive an additional weighted pupil membership of at least 0.3386 1
and not more than 0.3483 for each economically disadvantaged pupil. 2
(XIV) For 2040-2041, and every fiscal year thereafter, a 3
district assigned to band 1 must receive an additional weighted 4
pupil membership of at least 0.35 and not more than 0.36 for each 5
economically disadvantaged pupil. 6
(B) A district with an opportunity index score greater than or 7
equal to 20 but less than 44 must be assigned to band 2 and shall 8
receive an additional weighted pupil membership of at least 0.1741 9
and not more than 0.1813 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 20, multiplied by the band adjustment factor 13
applicable to this subdivision, plus 0.1741 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 0.36 and 0.375 per economically disadvantaged 18
pupil: 19
(I) For 2027-2028, a district assigned to band 2 must receive 20
an additional weighted pupil membership of at least 0.1863 and not 21
more than 0.1941 for each economically disadvantaged pupil. 22
(II) For 2028-2029, a district assigned to band 2 must receive 23
an additional weighted pupil membership of at least 0.1998 and not 24
more than 0.2081 for each economically disadvantaged pupil. 25
(III) For 2029-2030, a district assigned to band 2 must 26
receive an additional weighted pupil membership of at least 0.2133 27
and not more than 0.2222 for each economically disadvantaged pupil. 28
(IV) For 2030-2031, a district assigned to band 2 must receive 29
38

CRM S06571'26_SB0904_INTR_1 iw0ok8
an additional weighted pupil membership of at least 0.2268 and not 1
more than 0.2363 for each economically disadvantaged pupil. 2
(V) For 2031-2032, a district assigned to band 2 must receive 3
an additional weighted pupil membership of at least 0.2403 and not 4
more than 0.2503 for each economically disadvantaged pupil. 5
(VI) For 2032-2033, a district assigned to band 2 must receive 6
an additional weighted pupil membership of at least 0.2538 and not 7
more than 0.2644 for each economically disadvantaged pupil. 8
(VII) For 2033-2034, a district assigned to band 2 must 9
receive an additional weighted pupil membership of at least 0.2673 10
and not more than 0.2784 for each economically disadvantaged pupil. 11
(VIII) For 2034-2035, a district assigned to band 2 must 12
receive an additional weighted pupil membership of at least 0.2808 13
and not more than 0.2925 for each economically disadvantaged pupil. 14
(IX) For 2035-2036, a district assigned to band 2 must receive 15
an additional weighted pupil membership of at least 0.2943 and not 16
more than 0.3066 for each economically disadvantaged pupil. 17
(X) For 2036-2037, a district assigned to band 2 must receive 18
an additional weighted pupil membership of at least 0.3078 and not 19
more than 0.3206 for each economically disadvantaged pupil. 20
(XI) For 2037-2038, a district assigned to band 2 must receive 21
an additional weighted pupil membership of at least 0.3213 and not 22
more than 0.3347 for each economically disadvantaged pupil. 23
(XII) For 2038-2039, a district assigned to band 2 must 24
receive an additional weighted pupil membership of at least 0.3348 25
and not more than 0.3488 for each economically disadvantaged pupil. 26
(XIII) For 2039-2040, a district assigned to band 2 must 27
receive an additional weighted pupil membership of at least 0.3483 28
and not more than 0.3628 for each economically disadvantaged pupil. 29
39

CRM S06571'26_SB0904_INTR_1 iw0ok8
(XIV) For 2040-2041, and every fiscal year thereafter, a 1
district assigned to band 2 must receive an additional weighted 2
pupil membership of at least 0.36 and not more than 0.375 for each 3
economically disadvantaged pupil. 4
(C) A district with an opportunity index score greater than or 5
equal to 44 but less than 59 must be assigned to band 3 and shall 6
receive an additional weighted pupil membership of at least 0.1813 7
and not more than 0.1886 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 44, multiplied by the band adjustment factor 11
applicable to this subdivision, plus 0.1813 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 0.375 and 0.39 per economically disadvantaged 16
pupil: 17
(I) For 2027-2028, a district assigned to band 3 must receive 18
an additional weighted pupil membership of at least 0.1941 and not 19
more than 0.2018 for each economically disadvantaged pupil. 20
(II) For 2028-2029, a district assigned to band 3 must receive 21
an additional weighted pupil membership of at least 0.2081 and not 22
more than 0.2165 for each economically disadvantaged pupil. 23
(III) For 2029-2030, a district assigned to band 3 must 24
receive an additional weighted pupil membership of at least 0.2222 25
and not more than 0.2311 for each economically disadvantaged pupil. 26
(IV) For 2030-2031, a district assigned to band 3 must receive 27
an additional weighted pupil membership of at least 0.2363 and not 28
more than 0.2457 for each economically disadvantaged pupil. 29
40

CRM S06571'26_SB0904_INTR_1 iw0ok8
(V) For 2031-2032, a district assigned to band 3 must receive 1
an additional weighted pupil membership of at least 0.2503 and not 2
more than 0.2603 for each economically disadvantaged pupil. 3
(VI) For 2032-2033, a district assigned to band 3 must receive 4
an additional weighted pupil membership of at least 0.2644 and not 5
more than 0.2750 for each economically disadvantaged pupil. 6
(VII) For 2033-2034, a district assigned to band 3 must 7
receive an additional weighted pupil membership of at least 0.2784 8
and not more than 0.2896 for each economically disadvantaged pupil. 9
(VIII) For 2034-2035, a district assigned to band 3 must 10
receive an additional weighted pupil membership of at least 0.2925 11
and not more than 0.3042 for each economically disadvantaged pupil. 12
(IX) For 2035-2036, a district assigned to band 3 must receive 13
an additional weighted pupil membership of at least 0.3066 and not 14
more than 0.3188 for each economically disadvantaged pupil. 15
(X) For 2036-2037, a district assigned to band 3 must receive 16
an additional weighted pupil membership of at least 0.3206 and not 17
more than 0.3335 for each economically disadvantaged pupil. 18
(XI) For 2037-2038, a district assigned to band 3 must receive 19
an additional weighted pupil membership of at least 0.3347 and not 20
more than 0.3481 for each economically disadvantaged pupil. 21
(XII) For 2038-2039, a district assigned to band 3 must 22
receive an additional weighted pupil membership of at least 0.3488 23
and not more than 0.3627 for each economically disadvantaged pupil. 24
(XIII) For 2039-2040, a district assigned to band 3 must 25
receive an additional weighted pupil membership of at least 0.3628 26
and not more than 0.3773 for each economically disadvantaged pupil. 27
(XIV) For 2040-2041, and every fiscal year thereafter, a 28
district assigned to band 3 must receive an additional weighted 29
41

CRM S06571'26_SB0904_INTR_1 iw0ok8
pupil membership of at least 0.375 and not more than 0.39 for each 1
economically disadvantaged pupil. 2
(D) A district with an opportunity index score greater than or 3
equal to 59 but less than 73 must be assigned to band 4 and shall 4
receive an additional weighted pupil membership of at least 0.1886 5
and not more than 0.2031 for each economically disadvantaged pupil. 6
The additional weighted pupil membership under this sub-7
subparagraph must be an amount equal to the district's opportunity 8
index score minus 59, multiplied by the band adjustment factor 9
applicable to this sub-subparagraph, plus 0.1886 multiplied by the 10
number of pupils identified as economically disadvantaged under 11
this sub-subparagraph. The additional weighted pupil membership 12
under this sub-subparagraph must be increased as follows until it 13
reaches between 0.39 and 0.42 per economically disadvantaged pupil: 14
(I) For 2027-2028, a district assigned to band 4 must receive 15
an additional weighted pupil membership of at least 0.2018 and not 16
more than 0.2174 for each economically disadvantaged pupil. 17
(II) For 2028-2029, a district assigned to band 4 must receive 18
an additional weighted pupil membership of at least 0.2165 and not 19
more than 0.2331 for each economically disadvantaged pupil. 20
(III) For 2029-2030, a district assigned to band 4 must 21
receive an additional weighted pupil membership of at least 0.2311 22
and not more than 0.2489 for each economically disadvantaged pupil. 23
(IV) For 2030-2031, a district assigned to band 4 must receive 24
an additional weighted pupil membership of at least 0.2457 and not 25
more than 0.2646 for each economically disadvantaged pupil. 26
(V) For 2031-2032, a district assigned to band 4 must receive 27
an additional weighted pupil membership of at least 0.2603 and not 28
more than 0.2804 for each economically disadvantaged pupil. 29
42

CRM S06571'26_SB0904_INTR_1 iw0ok8
(VI) For 2032-2033, a district assigned to band 4 must receive 1
an additional weighted pupil membership of at least 0.2750 and not 2
more than 0.2961 for each economically disadvantaged pupil. 3
(VII) For 2033-2034, a district assigned to band 4 must 4
receive an additional weighted pupil membership of at least 0.2896 5
and not more than 0.3119 for each economically disadvantaged pupil. 6
(VIII) For 2034-2035, a district assigned to band 4 must 7
receive an additional weighted pupil membership of at least 0.3042 8
and not more than 0.3276 for each economically disadvantaged pupil. 9
(IX) For 2035-2036, a district assigned to band 4 must receive 10
an additional weighted pupil membership of at least 0.3188 and not 11
more than 0.3434 for each economically disadvantaged pupil. 12
(X) For 2036-2037, a district assigned to band 4 must receive 13
an additional weighted pupil membership of at least 0.3335 and not 14
more than 0.3591 for each economically disadvantaged pupil. 15
(XI) For 2037-2038, a district assigned to band 4 must receive 16
an additional weighted pupil membership of at least 0.3481 and not 17
more than 0.3749 for each economically disadvantaged pupil. 18
(XII) For 2038-2039, a district assigned to band 4 must 19
receive an additional weighted pupil membership of at least 0.3627 20
and not more than 0.3906 for each economically disadvantaged pupil. 21
(XIII) For 2039-2040, a district assigned to band 4 must 22
receive an additional weighted pupil membership of at least 0.3773 23
and not more than 0.4064 for each economically disadvantaged pupil. 24
(XIV) For 2040-2041, and every fiscal year thereafter, a 25
district assigned to band 3 must receive an additional weighted 26
pupil membership of at least 0.39 and not more than 0.42 for each 27
economically disadvantaged pupil. 28
(E) A district with an opportunity index score greater than or 29
43

CRM S06571'26_SB0904_INTR_1 iw0ok8
equal to 73 but less than 85 must be assigned to band 5 and shall 1
receive an additional weighted pupil membership of at least 0.2031 2
and not more than 0.2273 for each economically disadvantaged pupil. 3
The additional weighted pupil membership under this sub-4
subparagraph must be an amount equal to the district's opportunity 5
index score minus 73, multiplied by the band adjustment factor 6
applicable to this sub-subparagraph, plus 0.2031 multiplied by the 7
number of pupils identified as economically disadvantaged under 8
this sub-subparagraph. The additional weighted pupil membership 9
under this sub-subparagraph must be increased as follows until it 10
reaches between 0.42 and 0.47 per economically disadvantaged pupil: 11
(I) For 2027-2028, a district assigned to band 5 must receive 12
an additional weighted pupil membership of at least 0.2174 and not 13
more than 0.2432 for each economically disadvantaged pupil. 14
(II) For 2028-2029, a district assigned to band 5 must receive 15
an additional weighted pupil membership of at least 0.2331 and not 16
more than 0.2609 for each economically disadvantaged pupil. 17
(III) For 2029-2030, a district assigned to band 5 must 18
receive an additional weighted pupil membership of at least 0.2489 19
and not more than 0.2785 for each economically disadvantaged pupil. 20
(IV) For 2030-2031, a district assigned to band 5 must receive 21
an additional weighted pupil membership of at least 0.2646 and not 22
more than 0.2961 for each economically disadvantaged pupil. 23
(V) For 2031-2032, a district assigned to band 5 must receive 24
an additional weighted pupil membership of at least 0.2804 and not 25
more than 0.3137 for each economically disadvantaged pupil. 26
(VI) For 2032-2033, a district assigned to band 5 must receive 27
an additional weighted pupil membership of at least 0.2961 and not 28
more than 0.3314 for each economically disadvantaged pupil. 29
44

CRM S06571'26_SB0904_INTR_1 iw0ok8
(VII) For 2033-2034, a district assigned to band 5 must 1
receive an additional weighted pupil membership of at least 0.3119 2
and not more than 0.3490 for each economically disadvantaged pupil. 3
(VIII) For 2034-2035, a district assigned to band 5 must 4
receive an additional weighted pupil membership of at least 0.3276 5
and not more than 0.3666 for each economically disadvantaged pupil. 6
(IX) For 2035-2036, a district assigned to band 5 must receive 7
an additional weighted pupil membership of at least 0.3434 and not 8
more than 0.3842 for each economically disadvantaged pupil. 9
(X) For 2036-2037, a district assigned to band 5 must receive 10
an additional weighted pupil membership of at least 0.3591 and not 11
more than 0.4019 for each economically disadvantaged pupil. 12
(XI) For 2037-2038, a district assigned to band 5 must receive 13
an additional weighted pupil membership of at least 0.3749 and not 14
more than 0.4195 for each economically disadvantaged pupil. 15
(XII) For 2038-2039, a district assigned to band 5 must 16
receive an additional weighted pupil membership of at least 0.3906 17
and not more than 0.4371 for each economically disadvantaged pupil. 18
(XIII) For 2039-2040, a district assigned to band 5 must 19
receive an additional weighted pupil membership of at least 0.4064 20
and not more than 0.4547 for each economically disadvantaged pupil. 21
(XIV) For 2040-2041, and every fiscal year thereafter, a 22
district assigned to band 3 must receive an additional weighted 23
pupil membership of at least 0.42 and not more than 0.47 for each 24
economically disadvantaged pupil. 25
(F) A district with an opportunity index score greater than or 26
equal to 85 must be assigned to band 6 and shall receive an 27
additional weighted pupil membership at a rate of 0.2273 for each 28
economically disadvantaged pupil. It is intended that the 29
45

CRM S06571'26_SB0904_INTR_1 iw0ok8
additional weighted pupil membership under this sub-subparagraph 1
will be increased as follows until it reaches 0.47 per economically 2
disadvantaged pupil: 3
(I) For 2027-2028, a district assigned to band 6 must receive 4
an additional weighted pupil membership of 0.2432 for each 5
economically disadvantaged pupil. 6
(II) For 2028-2029, a district assigned to band 6 must receive 7
an additional weighted pupil membership of 0.2609 for each 8
economically disadvantaged pupil. 9
(III) For 2029-2030, a district assigned to band 6 must 10
receive an additional weighted pupil membership of 0.2785 for each 11
economically disadvantaged pupil. 12
(IV) For 2030-2031, a district assigned to band 6 must receive 13
an additional weighted pupil membership of 0.2961 for each 14
economically disadvantaged pupil. 15
(V) For 2031-2032, a district assigned to band 6 must receive 16
an additional weighted pupil membership of 0.3137 for each 17
economically disadvantaged pupil. 18
(VI) For 2032-2033, a district assigned to band 6 must receive 19
an additional weighted pupil membership of 0.3314 for each 20
economically disadvantaged pupil. 21
(VII) For 2033-2034, a district assigned to band 6 must 22
receive an additional weighted pupil membership of 0.3490 for each 23
economically disadvantaged pupil. 24
(VIII) For 2034-2035, a district assigned to band 6 must 25
receive an additional weighted pupil membership of 0.3666 for each 26
economically disadvantaged pupil. 27
(IX) For 2035-2036, a district assigned to band 6 must receive 28
an additional weighted pupil membership of 0.3842 for each 29
46

CRM S06571'26_SB0904_INTR_1 iw0ok8
economically disadvantaged pupil. 1
(X) For 2036-2037, a district assigned to band 6 must receive 2
an additional weighted pupil membership of 0.4019 for each 3
economically disadvantaged pupil. 4
(XI) For 2037-2038, a district assigned to band 6 must receive 5
an additional weighted pupil membership of 0.4195 for each 6
economically disadvantaged pupil. 7
(XII) For 2038-2039, a district assigned to band 6 must 8
receive an additional weighted pupil membership of 0.4371 for each 9
economically disadvantaged pupil. 10
(XIII) For 2039-2040, a district assigned to band 6 must 11
receive an additional weighted pupil membership of 0.4547 for each 12
economically disadvantaged pupil. 13
(XIV) For 2040-2041, and every fiscal year thereafter, a 14
district assigned to band 6 must receive an additional weighted 15
pupil membership of 0.47 for each economically disadvantaged pupil. 16
(G) As used in this subparagraph, "band adjustment factor" 17
means an amount equal to the difference between the lowest and 18
highest reimbursement bounds for each band, divided by the number 19
of possible opportunity index scores in that band. 20
(c) To assist the legislature in determining necessary funding 21
levels to support foundation allowance payments for weighted pupil 22
membership calculated in this subsection, each revenue estimating 23
conference conducted under section 367b of the management and 24
budget act, 1984 PA 431, MCL 18.1367b, must include estimated pupil 25
counts necessary to determine a weighted pupil membership under 26
this subsection for the current and subsequent 2 fiscal years. 27
Sec. 22b. (1) Except as otherwise provided in this section, 28
for discretionary nonmandated payments to districts under this 29
47

CRM S06571'26_SB0904_INTR_1 iw0ok8
section, there is allocated for 2024-2025 an amount not to exceed 1
$6,220,000,000.00 from the state school aid fund and general fund 2
appropriations in section 11 and an amount not to exceed 3
$41,000,000.00 from the community district education trust fund 4
appropriation in section 11, and there is allocated for 2025-2026 5
an amount not to exceed $6,696,500,000.00 $100.00 from the state 6
school aid fund and general fund appropriations in section 11. In 7
addition, there is allocated for 2025-2026 only an amount not to 8
exceed $124,000,000.00 from the state school aid fund appropriation 9
in section 11. For 2024-2025, the amount necessary, estimated at 10
$77,700,000.00, must be deposited from the general fund into the 11
state school aid fund to reimburse the state school aid fund for 12
community district education trust fund costs in excess of 13
$41,000,000.00, as required under section 12 of the Michigan trust 14
fund act, 2000 PA 489, MCL 12.262. For 2024-2025 only, if the 15
amount allocated under this subsection from the community district 16
education trust fund appropriation under section 11 is insufficient 17
to pay for an increase under this section, any amount exceeding 18
that allocation may be paid from other allocations under this 19
subsection. Except for money allocated under this section from the 20
community district education trust fund appropriation in section 21
11, funds 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 22a and 51c to fully fund those allocations for the same 25
fiscal year. 26
(2) Subject to subsection (3) (4) and section 296, the 27
allocation to a district under this section subsection (1) is an 28
amount equal to the sum of the amounts calculated under sections 29
48

CRM S06571'26_SB0904_INTR_1 iw0ok8
20, 20m, 51a(2), 51a(3), 51a(11), and 51e, minus the sum of the 1
allocations to the district under sections 22a and 51c. For a 2
community district, the allocation as otherwise calculated under 3
this section is increased by an amount equal to the amount of local 4
school operating tax revenue that would otherwise be due to the 5
community district if not for the operation of section 386 of the 6
revised school code, MCL 380.386, to offset the absence of local 7
school operating revenue in a community district in the funding of 8
the state portion of the foundation allowance under section 20(4). 9
, and, for 2024-2025 only, this increase must be paid from the 10
community district education trust fund allocation in subsection 11
(1). 12
(3) In addition to the allocation under subsection (2), 13
subject to subsection (4) and section 296, there is allocated to 14
each district an amount equal to the target foundation allowance 15
multiplied by the weighted pupil membership for the district. 16
(4) (3) To receive an allocation under subsection (1) or (3), 17
each district must do all of the following, as applicable: 18
(a) Comply with section 1280b of the revised school code, MCL 19
380.1280b. 20
(b) Comply with sections 1278a and 1278b of the revised school 21
code, MCL 380.1278a and 380.1278b. 22
(c) Furnish data and other information required by state and 23
federal law to the center and the department in the form and manner 24
specified by the center or the department, as applicable. 25
(d) Comply with section 1230g of the revised school code, MCL 26
380.1230g. 27
(e) Comply with section 21f. 28
(f) For a district that has entered into a partnership 29
49

CRM S06571'26_SB0904_INTR_1 iw0ok8
district agreement with the department, comply with section 22p. 1
(g) For a district receiving funds under subsection (3), 2
comply with section 1280h of the revised school code, MCL 3
380.1280h. 4
(h) Beginning with the fiscal year ending September 30, 2026, 5
if a district is not using a curriculum from the department's 6
evidence-based curriculum list required under section 1280f of the 7
revised school code, MCL 380.1280f, provide a notification to all 8
parents or legal guardians of students in grades K to 5 receiving 9
instruction with that curriculum that includes all of the 10
following: 11
(i) A statement informing parents or legal guardians that the 12
curriculum used by the district is not evidence-based or not 13
aligned to state standards, which could negatively impact student 14
academic outcomes. 15
(ii) A statement explaining why the district is not using a 16
curriculum that is evidence-based or aligned to state standards. 17
(iii) A plan, including a projected timeline, for when a new 18
curriculum will be adopted that is evidence-based and aligned to 19
state standards. 20
(5) (4) Districts are encouraged to use funds allocated under 21
this section for the purchase and support of payroll, human 22
resources, and other business function software that is compatible 23
with that of the intermediate district in which the district is 24
located and with other districts located within that intermediate 25
district. 26
(6) (5) From the allocation in subsection (1), the department 27
shall pay up to $1,000,000.00 in litigation costs incurred by this 28
state related to commercial or industrial property tax appeals, 29
50

CRM S06571'26_SB0904_INTR_1 iw0ok8
including, but not limited to, appeals of classification, that 1
impact revenues dedicated to the state school aid fund. 2
(7) (6) From the allocation in subsection (1), the department 3
shall pay up to $1,000,000.00 in litigation costs incurred by this 4
state associated with lawsuits filed by 1 or more districts or 5
intermediate districts against this state. If the allocation under 6
this section is insufficient to fully fund all payments required 7
under this section, the payments under this subsection must be made 8
in full before any proration of remaining payments under this 9
section. 10
(8) (7) It is the intent of the legislature that all 11
constitutional obligations of this state have been fully funded 12
under sections 22a, 31d, 51a, 51c, 51e, and 152a. If a claim is 13
made by an entity receiving funds under this article that 14
challenges the legislative determination of the adequacy of this 15
funding or alleges that there exists an unfunded constitutional 16
requirement, the state budget director may escrow or allocate from 17
the discretionary funds for nonmandated payments under this section 18
the amount as may be necessary to satisfy the claim before making 19
any payments to districts under subsection (2). If funds are 20
escrowed, the escrowed funds are a work project appropriation and 21
the funds are carried forward into the following fiscal year. The 22
purpose of the work project is to provide for any payments that may 23
be awarded to districts as a result of litigation. The work project 24
is completed upon resolution of the litigation. 25
(9) (8) If the local claims review board or a court of 26
competent jurisdiction makes a final determination that this state 27
is in violation of section 29 of article IX of the state 28
constitution of 1963 regarding state payments to districts, the 29
51

CRM S06571'26_SB0904_INTR_1 iw0ok8
state budget director shall use work project funds under subsection 1
(7) (8) or allocate from the discretionary funds for nonmandated 2
payments under this section the amount as may be necessary to 3
satisfy the amount owed to districts before making any payments to 4
districts under subsection (2). 5
(10) (9) If a claim is made in court that challenges the 6
legislative determination of the adequacy of funding for this 7
state's constitutional obligations or alleges that there exists an 8
unfunded constitutional requirement, any interested party may seek 9
an expedited review of the claim by the local claims review board. 10
If the claim exceeds $10,000,000.00, this state may remove the 11
action to the court of appeals, and the court of appeals has and 12
shall exercise jurisdiction over the claim. 13
(11) (10) If payments resulting from a final determination by 14
the local claims review board or a court of competent jurisdiction 15
that there has been a violation of section 29 of article IX of the 16
state constitution of 1963 exceed the amount allocated for 17
discretionary nonmandated payments under this section, the 18
legislature shall provide for adequate funding for this state's 19
constitutional obligations at its next legislative session. 20
(12) (11) If a lawsuit challenging payments made to districts 21
related to costs reimbursed by federal title XIX Medicaid funds is 22
filed against this state, then, for the purpose of addressing 23
potential liability under such a lawsuit, the state budget director 24
may place funds allocated under this section in escrow or allocate 25
money from the funds otherwise allocated under this section, up to 26
a maximum of 50% of the amount allocated in subsection (1). If 27
funds are placed in escrow under this subsection, those funds are a 28
work project appropriation and the funds are carried forward into 29
52

CRM S06571'26_SB0904_INTR_1 iw0ok8
the following fiscal year. The purpose of the work project is to 1
provide for any payments that may be awarded to districts as a 2
result of the litigation. The work project is completed upon 3
resolution of the litigation. In addition, this state reserves the 4
right to terminate future federal title XIX Medicaid reimbursement 5
payments to districts if the amount or allocation of reimbursed 6
funds is challenged in the lawsuit. As used in this subsection, 7
"title XIX" means title XIX of the social security act, 42 USC 1396 8
to 1396w-6. 9
(13) (12) As used in this section: 10
(a) "Dissolved district" means that term as defined in section 11
20. 12
(b) "Local school operating revenue" means school operating 13
taxes levied under section 1211 of the revised school code, MCL 14
380.1211. For a receiving district, if school operating taxes are 15
to be levied on behalf of a dissolved district that has been 16
attached in whole or in part to the receiving district to satisfy 17
debt obligations of the dissolved district under section 12 of the 18
revised school code, MCL 380.12, local school operating revenue 19
does not include school operating taxes levied within the 20
geographic area of the dissolved district. 21
(c) "Receiving district" and "school operating taxes" mean 22
those terms as defined in section 20. 23
Sec. 41. (1) For a district to be eligible to receive funding 24
under this section, With funds received by a district under section 25
22b(3), the district must administer to English language learners 26
the English language proficiency assessment known as the "WIDA 27
ACCESS for English language learners" or the "WIDA Alternate 28
ACCESS". From the state school aid fund money appropriated in 29
53

CRM S06571'26_SB0904_INTR_1 iw0ok8
section 11, there is allocated an amount not to exceed 1
$62,732,600.00 for 2025-2026 for payments to eligible districts for 2
services for English language learners who have been administered 3
the WIDA ACCESS for English language learners. Services for English 4
language learners under this section may include software used to 5
assist learning. 6
(2) The department shall distribute funding allocated under 7
subsection (1) to eligible districts based on the number of full-8
time equivalent English language learners as follows: 9
(a) $2,329.00 per full-time equivalent English language 10
learner who has been assessed under the WIDA ACCESS for English 11
language learners or the WIDA Alternate ACCESS with a WIDA ACCESS 12
or WIDA Alternate ACCESS composite score between 1.0 and 1.9, or 13
less, as applicable to each assessment. It is the intent of the 14
legislature to increase this amount until it reaches 75% of the 15
target foundation allowance. 16
(b) $1,608.00 per full-time equivalent English language 17
learner who has been assessed under the WIDA ACCESS for English 18
language learners or the WIDA Alternate ACCESS with a WIDA ACCESS 19
or WIDA Alternate ACCESS composite score between 2.0 and 2.9, or 20
less, as applicable to each assessment. It is the intent of the 21
legislature to increase this amount until it reaches 50% of the 22
target foundation allowance. 23
(c) $263.00 per full-time equivalent English language learner 24
who has been assessed under the WIDA ACCESS for English language 25
learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA 26
Alternate ACCESS composite score between 3.0 and 3.9, or less, as 27
applicable to each assessment. It is the intent of the legislature 28
to increase this amount until it reaches 35% of the target 29
54

CRM S06571'26_SB0904_INTR_1 iw0ok8
foundation allowance. 1
(3) If funds allocated under subsection (1) are insufficient 2
to fully fund the payments as prescribed under subsection (2), the 3
department shall prorate payments on an equal percentage basis, 4
with the same percentage proration applied to all funding 5
categories. 6
(4) By October 15 of the fiscal year following the receipt of 7
funding under subsection (1), each district receiving funds under 8
subsection (1) shall submit to the department a report, not to 9
exceed 10 pages, on the usage by the district of funds under 10
subsection (1) in a form and manner determined by the department, 11
including a brief description of each program conducted or services 12
performed by the district using funds under subsection (1) and the 13
amount of funds under subsection (1) allocated to each of those 14
programs or services. If a district does not comply with this 15
subsection, the department shall withhold an amount equal to the 16
December payment due under this section until the district complies 17
with this subsection. If the district does not comply with this 18
subsection by the end of the fiscal year, the withheld funds are 19
forfeited to the state school aid fund. 20
(5) To receive funds under subsection (1), a district must 21
allow access for the department or the department's designee to 22
audit all records related to the program for which it receives 23
those funds. The district shall reimburse this state for all 24
disallowances found in the audit. 25
(6) Beginning July 1, 2020, and every 3 years thereafter, the 26
department shall review the per-pupil distribution under subsection 27
(2), to ensure that funding levels are appropriate and make 28
recommendations for adjustments to the members of the senate and 29
55
Final Page
CRM S06571'26_SB0904_INTR_1 iw0ok8
house subcommittees on K to 12 school aid appropriations. 1
(2) (7) The department shall establish English language 2
learner program models that establish a minimum number of minutes 3
per week that districts must provide direct English language 4
development instruction for students according to the student's 5
proficiency levels. These models must be compliant with federal 6
requirements related to English language learner program services. 7
To be considered an eligible recipient of funding under this 8
section, a A district that receives funds under section 22b(3) must 9
agree to meet or exceed the minimum number of minutes per week, as 10
determined by the department, that the district provides direct 11
English language development instruction. 12
Enacting section 1. This amendatory act does not take effect 13
unless Senate Bill No. 903 of the 103rd Legislature is enacted into 14
law. 15