SB 881

SENATE BILL NO. 881
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11 and 17b (MCL 388.1611 and
388.1617b), section 11 as amended by 2025 PA 15 and section 17b as amended by
2007 PA 137.
the people of the state of michigan enact:
Sec. 11. (1) For
the fiscal year ending September 30, 2025, there is appropriated for the public
schools of this state and certain other state purposes relating to education
the sum of $17,936,546,300.00 from the state school aid fund, the sum of
$78,830,600.00 from the general fund, an amount not to exceed $41,000,000.00
from the community district education trust fund created under section 12 of
the Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not to exceed
$125,000,000.00 from the school transportation fund created under section 22k,
an amount not to exceed $71,000,000.00 from the enrollment stabilization fund
created under section 29, an amount not to exceed $30,000,000.00 from the
school meals reserve fund created under section 30e, an amount not to exceed
$18,000,000.00 from the great start readiness program reserve fund created
under section 32e, an amount not to exceed $481,400,000.00 from the MPSERS
retirement obligation reform reserve fund created under section 147b, and an
amount not to exceed $30,000,000.00 from the educator fellowship public
provider fund created in section 27d. For the fiscal year ending
September 30, 2026, 2027, there is appropriated for the public schools of
this state and certain other state purposes relating to education the sum of $18,366,334,700.00 $100.00
from the state school aid fund, the sum of $73,151,100.00
$100.00 from the general fund, an amount
not to exceed $100,000,000.00 $100.00 from the school consolidation and
infrastructure fund created under section 11x, an amount not to exceed $125,000,000.00 $100.00 from
the school transportation fund created under section 22k, an amount not to
exceed $71,000,000.00 $100.00 from the enrollment stabilization fund
created under section 29, an amount not to exceed $18,000,000.00
$100.00 from the great start readiness
program reserve fund created under section 32e, an amount not to exceed $30,000,000.00 $100.00 from
the educator fellowship public provider fund created under section 27d, an
amount not to exceed $97,037,400.00 $100.00 from the state school aid pupil support
reserve fund created under section 22r, and an amount not to exceed $600,000.00 $100.00 from
the general pupil support reserve fund created under section 22s. In addition,
all available federal funds are only appropriated as allocated in this article
for the fiscal years year ending September 30,
2025 and September 30, 2026.2027.
(2) The
appropriations under this section are allocated as provided in this article.
Money appropriated under this section from the general fund must be expended to
fund the purposes of this article before the expenditure of money appropriated
under this section from the state school aid fund.
(3) Any general
fund allocations under this article that are not expended by the end of the
fiscal year are transferred to the school aid stabilization fund created under
section 11a.
Sec. 17b. (1) Not later than October 20,
November 20, December 20, January 20, February 20, March 20, April 20, May 20,
June 20, July 20, and August 20, the department shall prepare electronic files
of the amount to be distributed under this act in the installment to the
districts and intermediate districts and deliver the electronic files to the
state treasurer, and the state treasurer shall pay the installments on each of
those dates or, if the date is not a business day, on the next business day
following that date. Except as otherwise provided in this act, the portion of
the district's or intermediate district's state fiscal year entitlement to be
included in each installment shall be 1/11. A district or intermediate district
shall accrue the payments received in July and August to the school fiscal year
ending the immediately preceding June 30.
(2) The state
treasurer shall make payment under this section by drawing a warrant in favor
of the treasurer of each district or intermediate district for the amount
payable to the district or intermediate district according to the electronic
files and delivering the warrant to the treasurer of each district or
intermediate district, or if the state treasurer receives a written request by
the treasurer of the district or intermediate district specifying an account,
by electronic funds transfer to that account of the amount payable to the
district or intermediate district according to the electronic files. The
department may make adjustments in payments made under this section through
additional payments when changes in law or errors in computation cause the
regularly scheduled payment to be less than the amount to which the district or
intermediate district is entitled pursuant to this act.
(3) Except as
otherwise provided in this act, grant payments to districts and intermediate
districts under this act shall must be paid according to the installment schedule
under subsection (1).
(4) Upon the
written request of a district or intermediate district and the submission of
proof satisfactory to the department of a need of a temporary and nonrecurring
nature, the superintendent, with the written concurrence of the state treasurer
and the state budget director, may authorize an advance release of funds due a
district or intermediate district under this act. An advance authorized under
this subsection shall not cause funds to be paid to a district or intermediate
district more than 30 days earlier than the established payment date for those
funds.