The bill amends the State School Aid Act of 1979 by adding a new section, 31c, which allocates up to $65 million from the state school aid fund for the 2025-2026 school year. This funding is designated for grants to eligible school districts to support pilot programs aimed at maintaining or establishing small class sizes in grades K to 3. To qualify for these grants, districts must have at least one eligible school building, submit an application with a projected budget, and demonstrate that at least 30% of their funds received under section 31a will be used for this purpose.

Eligible school buildings must operate at least one grade from K to 3, be part of a district that operates all grades K to 3, and be located in a district with an opportunity index band of 4 or higher. The bill stipulates that no single district can receive more than 25% of the total allocation, and it mandates that grants be awarded to a diverse range of districts, including specific ones like Muskegon Heights and Flint. Additionally, the average class size must not exceed a certain number of pupils, with a maximum of 19 pupils in any particular class. The funding is intended to be part of a two-year initiative, with any unspent funds carried forward into the following year.

Statutes affected:
Senate Introduced Bill: 388.1601, 388.1896