The bill amends the State School Aid Act of 1979, specifically sections 11 and 236, and introduces a new section 201i. For the fiscal year ending September 30, 2025, it appropriates a total of $100 from various funds, including the state school aid fund and general fund, significantly reducing previously allocated amounts. Additionally, it establishes a one-time appropriation of $3,300,000 from the coronavirus state fiscal recovery funds for the Michigan Community College Association to support the community college academic catch-up program. Section 236 further outlines appropriations for higher education, also reducing the previously allocated amounts to $100, while specifying sources for the adjusted gross appropriation and including provisions for grants and financial aid aimed at public universities and their pension obligations.

The bill modifies the funding process for participating public universities in Michigan that are part of the public school employees' retirement system. It removes the requirement for these universities to forward a specific amount to the retirement system and eliminates the stipulation that allocated funds must be paid in a lump-sum installment by October 31, 2024. The definition of "participating public universities" is clarified to refer specifically to those that report to the Michigan public school employees' retirement system and contribute to it for the state fiscal year. Overall, these changes aim to streamline the funding process and provide more flexibility for participating universities regarding their financial obligations to the retirement system, thereby easing administrative burdens and enhancing operational efficiency.

Statutes affected:
Substitute (S-1) AND AMENDMENT(S): 388.1601, 388.1896
Substitute (S-1): 388.1601, 388.1896
Senate Introduced Bill: 388.1611, 388.1836