The bill amends the State School Aid Act of 1979 by revising sections 22p and 104c, which pertain to funding and assessment requirements for partnership districts and public school academies. Under the new provisions, a district or public school academy designated as a partnership district must enter into a three-year partnership agreement with the state, outlining measurable academic outcomes, accountability measures, and reconstitution requirements for schools that fail to meet these outcomes. The bill specifies that if a partnership district does not have a signed agreement within 90 days of designation, funding will be withheld until compliance is achieved.

Additionally, the bill updates the assessment requirements for districts to receive state aid, mandating the administration of the Michigan Student Test of Educational Progress (M-STEP) and establishing a summative assessment system that measures student proficiency and growth. Key changes include the alignment of assessments with state standards, the requirement for transparent review processes, and the provision of timely reports on student performance. The bill also repeals section 104b of the State School Aid Act and takes effect on June 30, 2026.

Statutes affected:
Substitute (H-3): 388.1622, 388.1704
House Introduced Bill: 388.1622, 388.1704
As Passed by the House: 388.1622, 388.1704