SB 874

SENATE BILL NO. 874
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 236 and 241 (MCL 388.1836 and
388.1841), as amended by 2025 PA 15.
the people of the state of michigan enact:
Sec. 236. (1) Subject
to the conditions set forth in this article, the amounts listed in this section
are appropriated for higher education for the fiscal year ending September 30, 2026, 2027, from
the funds indicated in this section. The following is a summary of the
appropriations in this section: and sections 236d, 236e, and 236j:
(a) The gross
appropriation is $2,336,912,000.00. $100.00. After deducting total interdepartmental
grants and intradepartmental transfers in the amount of $0.00, the adjusted
gross appropriation is $2,336,912,000.00.$100.00.
(b) The sources of
the adjusted gross appropriation described in subdivision (a) are as follows:
(i) Total federal revenues, $3,200,000.00.$0.00.
(ii) Total local revenues, $0.00.
(iii) Total private revenues, $0.00.
(iv) Total other state restricted revenues, $850,768,300.00.$50.00.
(v) State general fund/general purpose
money, $1,482,943,700.00.$50.00.
(c) The totals and subtotals reflected in subdivisions (a)
and (b) do not include amounts appropriated under subsection (7)(d) or (8)(b)
to avoid duplicating totals of amounts appropriated in this section and section
236j.
(2) Amounts appropriated for public universities are as
follows:
(a) The appropriation for Central Michigan University is
$99,466,100.00, $95,226,900.00 for operations, $0.00 for operations increase,
$2,558,800.00 for MPSERS support payment, and $1,680,400.00 for costs incurred
under the North American Indian tuition waiver.
(b) The appropriation for Eastern Michigan University is
$86,649,200.00, $83,979,800.00 for operations, $0.00 for operations increase,
$2,256,500.00 for MPSERS support payment, and $412,900.00 for costs incurred
under the North American Indian tuition waiver.
(c) The appropriation for Ferris State University is
$62,221,900.00, $59,816,300.00 for operations, $0.00 for operations increase,
$1,607,300.00 for MPSERS support payment, and $798,300.00 for costs incurred
under the North American Indian tuition waiver.
(d) The appropriation for Grand Valley State University is
$98,772,000.00, $97,552,900.00 for operations, $0.00 for operations increase,
$0.00 for MPSERS support payment, and $1,219,100.00 for costs incurred under
the North American Indian tuition waiver.
(e) The appropriation for Lake Superior State University is
$16,301,400.00, $14,465,600.00 for operations, $0.00 for operations increase,
$388,700.00 for MPSERS support payment, and $1,447,100.00 for costs incurred
under the North American Indian tuition waiver.
(f) The appropriation for Michigan State University is
$396,845,300.00, $321,516,900.00 for operations, $0.00 for operations increase,
$0.00 for MPSERS support payment, $2,508,800.00 for costs incurred under the
North American Indian tuition waiver, $39,096,200.00 for MSU AgBioResearch, and
$33,723,400.00 for MSU Extension.
(g) The appropriation for Michigan Technological University
is $56,659,000.00, $54,463,700.00 for operations, $0.00 for operations
increase, $1,463,400.00 for MPSERS support payment, and $731,900.00 for costs
incurred under the North American Indian tuition waiver.
(h) The appropriation for Northern Michigan University is
$55,688,200.00, $52,850,300.00 for operations, $0.00 for operations increase,
$1,420,100.00 for MPSERS support payment, and $1,417,800.00 for costs incurred
under the North American Indian tuition waiver.
(i) The appropriation for Oakland University is
$73,361,600.00, $73,036,400.00 for operations, $0.00 for operations increase,
$0.00 for MPSERS support payment, and $325,200.00 for costs incurred under the
North American Indian tuition waiver.
(j) The appropriation for Saginaw Valley State University is
$34,379,000.00, $34,196,000.00 for operations, $0.00 for operations increase,
$0.00 for MPSERS support payment, and $183,000.00 for costs incurred under the
North American Indian tuition waiver.
(k) The appropriation for University of Michigan – Ann Arbor
is $362,507,900.00, $360,607,300.00 for operations, $0.00 for operations
increase, $0.00 for MPSERS support payment, and $1,900,600.00 for costs
incurred under the North American Indian tuition waiver.
(l) The appropriation for University of
Michigan – Dearborn is $31,708,000.00, $31,513,700.00 for operations, $0.00 for
operations increase, $0.00 for MPSERS support payment, and $194,300.00 for
costs incurred under the North American Indian tuition waiver.
(m) The appropriation for University of Michigan – Flint is
$26,884,600.00, $26,403,700.00 for operations, $0.00 for operations increase,
$0.00 for MPSERS support payment, and $480,900.00 for costs incurred under the
North American Indian tuition waiver.
(n) The appropriation for Wayne State University is
$227,787,300.00, $227,310,200.00 for operations, $0.00 for operations increase,
$0.00 for MPSERS support payment, and $477,100.00 for costs incurred under the
North American Indian tuition waiver.
(o) The appropriation for Western Michigan University is
$125,246,700.00, $121,231,800.00 for operations, $0.00 for operations increase,
$3,257,500.00 for MPSERS support payment, and $757,400.00 for costs incurred
under the North American Indian tuition waiver.
(3) The amount appropriated in subsection (2) for public
universities is $1,754,478,200.00, appropriated from the following:
(a) State school aid fund, $643,168,300.00.
(b) State general fund/general purpose money,
$1,111,309,900.00.
(4) The amount appropriated for Michigan public school
employees' retirement system reimbursement is $0.00.
(5) The amount appropriated for state and regional programs
is $322,100.00, appropriated from general fund/general purpose money and
allocated as follows:
(a) Higher education database modernization and conversion,
$200,000.00.
(b) Midwestern Higher Education Compact, $122,100.00.
(6) The amount appropriated for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated from general
fund/general purpose money and allocated as follows:
(a) Select student support services, $1,956,100.00.
(b) Michigan college/university partnership program,
$586,800.00.
(c) Morris Hood, Jr. educator development program,
$148,600.00.
(7) Subject to subsection (8), the amount appropriated for
grants and financial aid is $469,500,000.00, allocated as follows:
(a) Tuition incentive program, $122,300,000.00.
(b) Children of veterans and officer's survivor tuition grant
programs, $2,000,000.00.
(c) Project GEAR-UP, $3,200,000.00.
(d) Michigan achievement scholarships, $300,000,000.00. From
this amount, up to $10,000,000.00 may be used to award skills scholarships
under section 248a.
(e) Michigan reconnect, $42,000,000.00.
(8) The money appropriated in subsection (7) for grants and
financial aid is appropriated from the following:
(a) Federal revenues under the United States Department of
Education, Office of Elementary and Secondary Education, GEAR-UP program,
$3,200,000.00.
(b) Postsecondary scholarship fund, $300,000,000.00.
(c) State general fund/general purpose money,
$166,300,000.00.
(d) At the close of the fiscal year, state general
fund/general purpose money appropriated in subsection (7) for grants and
scholarships that is unspent must be deposited into the postsecondary
scholarship fund created in section 236j.
(9) For fiscal year 2025-2026 only, in addition to the
allocation under subsection (4), from the appropriations described in
subsection (1), there is allocated an amount not to exceed $7,600,000.00 for
payments to participating public universities, appropriated from the state
school aid fund. A public university that receives money under this subsection
shall use that money solely for the purpose of offsetting the normal cost
contribution rate. As used in this subsection, "participating public universities"
means public universities that are a reporting unit of the Michigan public
school employees' retirement system under the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that pay
contributions to the Michigan public school employees' retirement system for
the state fiscal year.
Sec. 241. Subject to sections 241a, 241b,
241c, 241e, 241h, and 244, the funds appropriated in sections 236 and 236d to
public universities must be paid out of the state treasury and distributed by
the state treasurer to the respective institutions in 11 equal monthly
installments on the sixteenth of each month, or the next succeeding business
day, beginning with October 16, 2025. 2026. Except for Wayne State University, each
institution shall accrue its July and August 2026 2027 payments to its institutional fiscal year ending
June 30, 2026.2027.