The bill amends the State School Aid Act of 1979, primarily focusing on appropriations for public schools and community colleges for the fiscal year ending September 30, 2026. It significantly reduces the appropriated amounts to $100 across various funds, including the state school aid fund and the general fund. Additionally, any unspent general fund allocations at the end of the fiscal year will be transferred to the school aid stabilization fund. The bill also modifies the payment schedule for state fiscal year entitlements, requiring payments to be made on specific dates and mandating that each installment includes 1/11 of the total entitlement. It emphasizes the need for written requests for advance fund releases, which must occur no more than 30 days before the payment date.

Furthermore, the bill allocates funds for educational initiatives for the fiscal year 2024-2025, including $350,000 for internet accessibility improvements at Kalamazoo Valley Community College and a total of $2,324,292,600 for higher education. It designates $542,453,600 for scholarship programs and initiatives to increase FAFSA completion rates, along with specific project funding. The distribution schedule for funds to public universities is also amended, requiring payments to be made in 11 equal monthly installments starting October 16, 2025, and updating the fiscal year references to align with this new schedule. Overall, the bill aims to streamline funding processes while addressing the financial needs of educational institutions in Michigan.

Statutes affected:
Senate Introduced Bill: 388.1611