The bill amends the existing law regarding the community district education trust fund, which is established within the state treasury. It allows the state treasurer to receive and invest funds from various sources, ensuring that interest and earnings from these investments are credited to the trust fund. The bill stipulates that funds in the community district education trust fund at the end of the fiscal year will not lapse into the general fund and outlines that the department of treasury will administer the fund for auditing purposes. Additionally, it specifies that the funds can only be used to offset the absence of local school operating revenue in community districts, as defined in the revised school code.

Furthermore, the bill mandates that starting in fiscal year 2017, $72 million of tobacco settlement revenue, which is not classified as TSR under the Michigan tobacco settlement finance authority act, must be deposited into the community district education trust fund annually, with a cap of $617 million total. However, it also includes a provision that after September 30, 2026, no further appropriations or expenditures can be made from the trust fund, and any remaining funds will be transferred to the state school aid fund.

Statutes affected:
House Introduced Bill: 12.262
As Passed by the House: 12.262
As Passed by the Senate: 12.262
House Concurred Bill: 12.262
House Enrolled Bill: 12.262