CHARTER SCHOOL MANAGEMENT AGREEMENTS S.B. 943 (S-1) & 944 (S-1):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bills 943 and 944 (Substitute S-1 as reported)
Sponsor: Senator Dayna Polehanki (S.B. 943)
Senator Rosemary Bayer (S.B. 944)
Committee: Education
CONTENT
Senate Bill 944 (S-1) would amend the Revised School Code to do the following:
-- Require a management agreement entered by a strict discipline academy to include a
requirement that the educational management organization provide to the strict discipline
academy’s board of directors at least annually the same information a traditional public
school district is required to disclose.
-- Require a management agreement entered or renewed after the bill’s effective date to
include provisions requiring an educational management organization to annually provide
to a charter school’s board of directors an audited financial statement concerning the
previous fiscal year and a description of each fringe benefit included in an employee,
officer, or board member’s compensation package if that individual made over $100,000
per year and was involved in the day-to-day operations and staffing of the charter school.
-- Require this information to be made publicly available on a charter school’s website.
Senate Bill 943 (S-1) would amend the State School Aid Act to require a school district or
intermediate school district (ISD) that was a public school academy (PSA) to make available
on its public website audited financial statements provided by an educational management
organization, detailed accountings provided by the authorizing body of a charter school
concerning expenditures, the annual oversight report required by Senate Bill 946 (S-1), the
management agreement, and notices of noncompliance with applicable education standards,
guidelines, or rules.
Senate Bill 943 is tie-barred to Senate Bills 944 and 946. Senate Bill 946 would amend the
Revised School Code to require an authorizing body of a charter school to perform specific
oversight of that charter school. Each bill would take effect 90 days after its enactment.
MCL 388.1618 (S.B. 943); 380.503c et al. (S.B. 944)
BRIEF RATIONALE
Public school academies, schools of excellence, urban high school academies, and strict
discipline academies are referred to as charter schools because they are created by charter
contracts approved by an authorizing body. While traditional public schools are run by
superintendents, many charter schools are operated by private for-profit companies called
educational management organizations; however, charter schools receive State
appropriations. Private companies are not subject to Freedom of Information Act requests
and other disclosure requirements, and some believe this creates a lack of transparency
surrounding charter school finances that allows educational management organizations to
unduly profit from public funds. Accordingly, some have suggested that charter schools be
required to publicly disclose certain financial information.
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 Legislative Analyst: Abby Schneider
FISCAL IMPACT
The bills would have a fiscal impact on the Michigan Department of Education (MDE) and a
minor fiscal impact on charter schools. The bills would increase costs to the MDE to collect
and report the information provided by charter school academies and education management
organizations. The MDE’s Fiscal Year 2024-25 budget includes $150,000 to maintain a charter
school transparency database.
Date Completed: 11-25-24 Fiscal Analyst: Ryan Bergan
Cory Savino, PhD
SAS\Floors2324\sb943
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
Page 2 of 2 Bill Analysis @ www.senate.michigan.gov/sfa sb943/944/2324


Statutes affected:
Substitute (S-1): 380.503
Substitute (S-2): 380.503
Senate Introduced Bill: 380.503
As Passed by the Senate: 380.503