The bill amends the State School Aid Act of 1979, making significant updates to funding for public schools in Michigan. It changes the fiscal year ending date from September 30, 2025, to September 30, 2026, and adjusts the appropriated amounts from the state school aid fund from $17,769,551,300 to $15,039,488,000, while also reducing the general fund allocation from $78,830,600 to $400,000. The target foundation allowance for the fiscal year 2025-2026 is increased from $9,608 to $10,025. Additionally, the bill modifies the allocation of funds to districts and public school academies, reducing the total allocation for the fiscal year 2025-2026 from $4,144,000,000 to $3,803,000,000, while ensuring that districts receive adequate funding through the use of unspent funds from the current fiscal year.

Moreover, the bill introduces several amendments focusing on mental health and safety initiatives, increasing allocated funds from $150 million to $350 million for the 2025-2026 fiscal year. It specifies allowable expenditures for these funds and removes references to nonpublic schools in certain funding provisions. The bill also addresses special education funding, clarifying the counting of pupils in special education programs and establishing responsibilities for intermediate districts. Additionally, it proposes significant changes to the Michigan public school employees' retirement system (MPSERS), increasing the total amount available for payments from $955 million to $1.536 billion and raising the average MPSERS rate cap per pupil from $740 to $1,100. Overall, the bill aims to enhance funding management and accountability while addressing educational challenges in Michigan.

Statutes affected:
House Introduced Bill: 388.1611, 388.1617