The bill amends the State School Aid Act of 1979 to enhance the funding and administration of educational assessments in Michigan, appropriating $17,769,551,300 from the state school aid fund for the fiscal year ending September 30, 2025, along with additional funding from the general fund and federal sources. It stipulates that general fund allocations must be utilized prior to state school aid funds and outlines the transfer of any unspent general fund allocations to the school aid stabilization fund. New compliance requirements for districts are introduced to ensure eligibility for state aid, and modifications to the Michigan Merit Examination are mandated, requiring its administration for students in grades 11 and 12, with specific provisions for content, scoring, and reporting that align with state and federal standards.

Additionally, the bill allows the middle college program to use a 5-year graduation rate for assessing adequate yearly progress and mandates the inclusion of statewide assessment scores and graduation rates for consortium pupils in district reports. It clarifies the administration of assessments for these pupils, permitting them to be conducted at either the consortium location or their enrolled school. New requirements for the state assessment system are introduced, including the administration of the Michigan student test of educational progress (M-STEP) and the development of a summative assessment system to measure student proficiency and growth. The bill emphasizes alignment with state standards, timely reporting on student performance, and a transparent review process for assessment questions, while also establishing pilot programs for a state-administered assessment system that ensures diverse district representation and compliance with federal law.

Statutes affected:
Substitute (H-1): 388.1611
House Introduced Bill: 388.1611
As Passed by the House: 388.1611