The proposed bill, titled the "Community Colleges and Higher Education Funding Source Limitation Act," aims to impose a cap on the funding allocated to community colleges and higher education from the state school aid fund. Specifically, it stipulates that starting from the fiscal year ending September 30, 2026, and for each subsequent fiscal year, the total amount appropriated for these educational institutions cannot exceed $1,324,000,000. This limit is established under the provisions of the state school aid act of 1979.

Additionally, the bill includes a provision that mandates if the appropriated amount exceeds the established limit, the difference must be reimbursed to the state school aid fund using general fund/general purpose money. This ensures that the funding for community colleges and higher education remains within the specified financial boundaries while also providing a mechanism for accountability in the event of overspending.