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 maintain or establish 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 from section 31a will support small classes. Eligible school buildings must operate grades 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 emphasizes the need for geographical diversity among the districts receiving funds, including urban, suburban, and rural areas. Specific districts, such as Muskegon Heights Public School Academy System and Flint School District, are mandated to receive grants. 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 from 2025-2026 carried forward into the following year, and the project is expected to be completed by September 30, 2030.

Statutes affected:
Senate Introduced Bill: 388.1601, 388.1896