The bill amends the State School Aid Act of 1979, significantly altering the appropriations for public schools and community colleges for the fiscal year ending September 30, 2026. It reduces the previously allocated amounts, such as $17,769,551,300 for public schools and $462,220,800 for community colleges, to a nominal amount of $100 across various funds. This drastic reduction in funding may adversely affect educational resources and services. Additionally, the bill revises the payment schedule for distributing funds to school districts, mandating that the state treasurer make payments on specific dates and allowing for adjustments due to legal changes or computational errors. It also requires written requests for advance fund releases and stipulates that any unspent general fund allocations will be transferred to the school aid stabilization fund.

Moreover, the bill outlines a total gross appropriation of $2,324,292,600 for educational initiatives in Michigan for the fiscal year 2024-2025, with specific allocations for community colleges and public universities. It introduces funding for internet accessibility improvements and a FAFSA completion incentive program, while also modifying the fiscal year end for community colleges to June 30, 2026. The distribution of funds to public universities will now occur in 11 equal monthly installments, starting on October 16, 2025, with adjustments made for certain institutions regarding their payment accruals. The bill also clarifies the definition of "participating public universities" by removing previous language related to the Michigan public school employees' retirement system, aiming for clearer communication regarding retirement contributions.

Statutes affected:
Senate Introduced Bill: 388.1611