The bill amends the State School Aid Act of 1979, focusing on appropriations for community colleges for the fiscal year ending September 30, 2026. It proposes a gross appropriation of $456,652,500, a decrease from the previous year's funding. The bill outlines specific allocations for each community college, adjusting operational funding while eliminating performance funding for many institutions. New sections (217d through 217i) are introduced, and certain acts are repealed, specifying appropriations for retirement contributions and tax reimbursements. Community colleges are required to use the funds solely for offsetting normal cost contribution rates, and the bill emphasizes collaboration with four-year universities and local employers to enhance employment outcomes.

Additionally, the bill mandates various reporting and compliance requirements for community colleges receiving state funds, including annual reports on tuition and mandatory fees, with a maximum increase cap of 3.0% or $149.00 for the 2025-2026 academic year. It introduces penalties for non-compliance with tuition caps and Title IX regulations, including withholding state funding. The legislation prohibits the use of state appropriations for diversity, equity, and inclusion initiatives, and establishes strict guidelines for salary allocations and the maintenance of gender-specific athletic teams. Transparency measures are also included, requiring colleges to publicly post employee information and conduct annual financial audits. The bill is set to take effect on October 1, 2025.

Statutes affected:
House Introduced Bill: 388.1801, 388.1806