The bill amends the State School Aid Act of 1979 by significantly updating appropriations for public schools, community colleges, and higher education for the fiscal years ending September 30, 2026, and September 30, 2027. It introduces a uniform appropriation of $100.00 across various funds, including the state school aid fund and general fund, marking a drastic reduction from previously allocated amounts in the billions. The bill also extends appropriations to the fiscal year ending September 30, 2027, and stipulates that all available federal funds must be allocated as specified for this extended period. Furthermore, it emphasizes that general fund money must be expended before utilizing funds from the state school aid fund.

In addition to the changes in appropriations, the bill outlines specific funding for public universities in Michigan for the fiscal year 2025-2026, including operational funding and payments related to the Michigan Public School Employees' Retirement System (MPSERS) and the North American Indian tuition waiver. A new provision allocates up to $7,600,000.00 from the state school aid fund to participating public universities to offset normal cost contribution rates. The bill also details overall appropriations for grants and financial aid, totaling $469,500,000.00, with allocations for programs like the Tuition Incentive Program and Michigan Reconnect, and mandates that any unspent funds be deposited into the postsecondary scholarship fund at the end of the fiscal year.

Statutes affected:
Senate Introduced Bill: 388.1611