This bill amends the State School Aid Act of 1979 by updating the appropriations for public schools in Michigan for the fiscal years ending September 30, 2025, and September 30, 2026. For the 2025 fiscal year, the bill allocates a total of $17,769,551,300 from the state school aid fund and additional amounts from various other funds, including $78,830,600 from the general fund. For the 2026 fiscal year, it appropriates $12,823,800 from the state school aid fund and minimal amounts from other funds, with all available federal funds also being appropriated for both years. The bill specifies that general fund allocations must be expended before those from the state school aid fund and outlines the transfer of unspent general fund allocations to the school aid stabilization fund.

Additionally, the bill modifies the allocations for supplemental payments to rural districts, increasing the amount from $12,306,900 to $12,823,800 for the 2025-2026 fiscal year. It also raises the funding for eligible districts with fewer than 250 pupils and those with specific geographic challenges, such as being located in the Upper Peninsula or on islands. The bill establishes a cooperative spending plan developed by intermediate superintendents to determine the financial needs of eligible districts and outlines the distribution of funds based on these needs. Overall, the bill aims to enhance funding for rural and underserved school districts while ensuring a structured approach to financial allocations.

Statutes affected:
House Introduced Bill: 388.1611, 388.1622