The bill amends the State School Aid Act of 1979 to significantly increase funding for community colleges in Michigan for the fiscal year ending September 30, 2026. The gross appropriation for community colleges is raised from $462,220,800 to $506,504,600, with specific allocations for various institutions, including increases for operations and performance funding. Notably, funding for infrastructure, technology, and safety is boosted from $1,150,000 to $10,972,500, and retirement contributions for participating colleges are increased from $62,100,000 to $89,500,000. The bill also mandates that appropriated funds cannot be used for foreign goods if comparable American goods are available, prioritizing Michigan businesses, especially those owned by veterans or employing union members.

In addition to funding increases, the bill introduces new operational and reporting requirements for community colleges. It requires the development of partnerships with four-year universities, the establishment of reverse transfer agreements, and the implementation of policies allowing students to earn credits at no cost. Community colleges must also report on diversity, equity, and inclusion programs, as well as provide itemized costs of attendance. The legislation sets tuition restraint levels for the academic years 2025-2026 and 2026-2027, with caps on increases for in-district students, and introduces a new performance funding distribution formula based on various metrics. Overall, the bill aims to enhance financial support and operational accountability for community colleges in Michigan.

Statutes affected:
Senate Introduced Bill: 388.1801, 388.1806