Appropriations: school aid; fiscal year 2025-2026 appropriations for K-12 school aid; provide for, the official text

Act
No. 15

Public
Acts of 2025

Approved
by the Governor

October
7, 2025

Filed
with the Secretary of State

October
7, 2025

EFFECTIVE
DATE:  October 7, 2025

state of michigan

103rd Legislature

Regular session of 2025

Introduced by Senator Camilleri

ENROLLED SENATE BILL No. 166

AN ACT to amend 1979 PA 94,
entitled “An act to make appropriations to aid in the support of the public schools,
the intermediate school districts, community colleges, and public universities
of the state; to make appropriations for certain other purposes relating to
education; to provide for the disbursement of the appropriations; to authorize
the issuance of certain bonds and provide for the security of those bonds; to
prescribe the powers and duties of certain state departments, the state board
of education, and certain other boards and officials; to create certain funds
and provide for their expenditure; to prescribe penalties; and to repeal acts
and parts of acts,” by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s,
11x, 12d, 15, 18, 19, 20, 20d, 21f, 21h, 22a, 22b, 22d, 22k, 22l, 22m,
22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27h, 27l,
27p, 27r, 28, 29, 30d, 31a, 31d, 31f, 31n, 31aa, 32d, 32n, 32t, 33, 35a, 35m,
39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 55, 56, 61a, 61b, 61d,
61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 97g, 97k, 98, 99, 99h, 99ee, 101,
104, 104b, 104h, 107, 111, 147, 147a, 147c, 147e, 152a, 152b, 161a, 201, 201f,
206, 207a, 207b, 207c, 210, 210b, 210d, 212, 216e, 217a, 217b, 217c, 222, 229a,
230, 236, 236c, 236d, 236j, 241, 241a, 241b, 241c, 241e, 244, 247, 248, 251,
252, 254, 256, 260, 263, 263b, 264, 268, 269, 270, 270c, 275k, 276, 277, 278,
279, 280, 281, 282, 283, 284, 285, and 286 (MCL 388.1603, 388.1606, 388.1611,
388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1611x, 388.1612d,
388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1621f, 388.1621h,
388.1622a, 388.1622b, 388.1622d, 388.1622k, 388.1622l, 388.1622m,
388.1622p, 388.1624, 388.1624a, 388.1625f, 388.1625g, 388.1626a, 388.1626b,
388.1626c, 388.1626d, 388.1627a, 388.1627b, 388.1627c, 388.1627h, 388.1627l,
388.1627p, 388.1627r, 388.1628, 388.1629, 388.1630d, 388.1631a, 388.1631d,
388.1631f, 388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632t, 388.1633,
388.1635a, 388.1635m, 388.1639, 388.1639a, 388.1641, 388.1641b, 388.1651a,
388.1651c, 388.1651d, 388.1651e, 388.1651g, 388.1653a, 388.1654, 388.1654d,
388.1655, 388.1656, 388.1661a, 388.1661b, 388.1661d, 388.1661j, 388.1662,
388.1665, 388.1667, 388.1667f, 388.1674, 388.1681, 388.1694, 388.1694a,
388.1694e, 388.1697g, 388.1697k, 388.1698, 388.1699, 388.1699h, 388.1699ee,
388.1701, 388.1704, 388.1704b, 388.1704h, 388.1707, 388.1711, 388.1747,
388.1747a, 388.1747c, 388.1747e, 388.1752a, 388.1752b, 388.1761a, 388.1801,
388.1801f, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1810, 388.1810b,
388.1810d, 388.1812, 388.1816e, 388.1817a, 388.1817b, 388.1817c, 388.1822,
388.1829a, 388.1830, 388.1836, 388.1836c, 388.1836d, 388.1836j, 388.1841,
388.1841a, 388.1841b, 388.1841c, 388.1841e, 388.1844, 388.1847, 388.1848,
388.1851, 388.1852, 388.1854, 388.1856, 388.1860, 388.1863, 388.1863b, 388.1864,
388.1868, 388.1869, 388.1870, 388.1870c, 388.1875k, 388.1876, 388.1877,
388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884, 388.1885,
and 388.1886), sections 3, 11x, 19, 21f, 27b, 32t, and 283 as amended and
sections 22k, 27h, 217a, and 241b as added by 2023 PA 103, sections 6 and 97g
as amended by 2023 PA 320, sections 11 and 31aa as amended by 2024 PA 148,
sections 11a, 11j, 11k, 11m, 11s, 15, 20, 20d, 21h, 22a, 22b, 22d, 22l,
22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27c, 27l, 27p, 28,
29, 30d, 31a, 31d, 31f, 31n, 32d, 32n, 33, 35a, 39, 39a, 41, 41b, 51a, 51c,
51d, 51e, 51g, 53a, 54, 54d, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81,
94, 94a, 97k, 98, 99h, 99ee, 104, 104h, 107, 147, 147a, 147c, 147e, 152a, 152b,
201, 206, 207a, 207b, 207c, 217b, 222, 229a, 230, 236, 236c, 236j, 241, 241a,
241c, 244, 248, 251, 252, 254, 256, 260, 263, 263b, 264, 268, 269, 270c, 275k,
276, 277, 278, 279, 280, 281, and 282 as amended and sections 12d, 27r, 35m,
55, 94e, 99, 201f, 216e, 217c, 236d, 241e, 247, and 270 as added by 2024 PA
120, section 18 as amended by 2022 PA 144, section 101 as amended by 2025 PA 5,
section 104b as amended by 2018 PA 265, section 111 as amended by
1997 PA 93, section 161a as amended by 2006 PA 342, section 210 as amended and
section 210d as added by 2015 PA 85, sections 210b, 285, and 286 as amended by
2021 PA 86, section 212 as amended by 2016 PA 249, and section 284 as amended
by 2017 PA 108, and by adding sections 12e, 18d, 22r, 22s, 31c, 32y, 35e, 61v,
97n, 99mm, 164k, 164l, 201i, 217f, 236e, 236s, and 241h; and to repeal
acts and parts of acts.

The People of the State of
Michigan enact:

Sec.
3. (1) “Average daily attendance”, for the purposes of complying with federal
law, means 92% of the pupils counted in membership on the pupil membership
count day, as defined in section 6(7).

(2) “Board” means the governing body of a district or public
school academy.

(3) “Center” means the center for educational performance and
information created in section 94a.

(4) “Community district” means a school district organized
under part 5b of the revised school code, MCL 380.381 to 380.396.

(5) “Cooperative education program” means a written voluntary
agreement between and among districts to provide certain educational programs
for pupils in certain groups of districts. The written agreement must be
approved by all affected districts at least annually and must specify the educational
programs to be provided and the estimated number of pupils from each district
who will participate in the educational programs.

(6) “Department”, except as otherwise provided in this
article, means the department of education.

(7) “District” means, except as otherwise specifically
provided in this act, a local school district established under the revised
school code or, except in sections 6(4), 6(6), 11x, 11y, 11aa, 12c, 13, 20,
22a, 22p, 31a, 51a(14), 105,
105c, and 166b, a public school academy. Except in section 20, district also
includes a community district.

(8) “District of residence”, except as otherwise provided in
this subsection, means the district in which a pupil’s custodial parent or
parents or legal guardian resides. For a pupil described in section 24b, the
pupil’s district of residence is the district in which the pupil enrolls under
that section. For a pupil described in section 6(4)(d), the pupil’s district of
residence is considered to be the district or intermediate district in which
the pupil is counted in membership under that section. For a pupil under court
jurisdiction who is placed outside the district in which the pupil’s custodial
parent or parents or legal guardian resides, the pupil’s district of residence
is considered to be the educating district or educating intermediate district.

(9) “District superintendent” means the superintendent of a
district or the chief administrator of a public school academy.

Sec.
6. (1) “Center program” means a program operated by a district or by an
intermediate district for special education pupils from several districts in
programs for pupils with autism spectrum disorder, pupils with severe cognitive
impairment, pupils with moderate cognitive impairment, pupils with severe
multiple impairments, pupils with hearing impairment, pupils with visual
impairment, and pupils with physical impairment or other health impairment.
Programs for pupils with emotional impairment housed in buildings that do not
serve regular education pupils also qualify. Unless otherwise approved by the
department, a center program either serves all constituent districts within an
intermediate district or serves several districts with less than 50% of the
pupils residing in the operating district. In addition, special education
center program pupils placed part-time in noncenter programs to comply with the
least restrictive environment provisions of section 1412 of the individuals
with disabilities education act, 20 USC 1412, may be considered center program
pupils for pupil accounting purposes for the time scheduled in either a center
program or a noncenter program.

(2) “District and high school graduation rate” means the
annual completion and pupil dropout rate that is calculated by the center
pursuant to nationally recognized standards.

(3) “District and high school graduation report” means a
report of the number of pupils, excluding adult education participants, in the
district for the immediately preceding school year, adjusted for those pupils
who have transferred into or out of the district or high school, who leave high
school with a diploma or other credential of equal status.

(4) “Membership”, except as otherwise provided in this
article, means for a district, a public school academy, or an intermediate
district the sum of the product of .90 times the number of full-time equated
pupils in grades K to 12 actually enrolled and in regular daily attendance
in the district, public school academy, or intermediate district on the pupil
membership count day for the current school year, plus the product of .10 times
the final audited count from the supplemental count day of full-time equated
pupils in grades K to 12 actually enrolled and in regular daily attendance in
the district, public school academy, or intermediate district for the
immediately preceding school year. A district’s, public school academy’s, or
intermediate district’s membership is adjusted as provided under section 25e
for pupils who enroll after the pupil membership count day in a strict
discipline academy operating under sections 1311b to 1311m of the revised
school code, MCL 380.1311b to 380.1311m. All pupil counts used in this
subsection are as determined by the department and calculated by adding the
number of pupils registered for attendance plus pupils received by transfer and
minus pupils lost as defined by rules promulgated by the superintendent, and as
corrected by a subsequent department audit. The amount of the foundation
allowance for a pupil in membership is determined under section 20. In making
the calculation of membership, all of the following, as applicable, apply to
determining the membership of a district, a public school academy, or an
intermediate district:

(a) Except as otherwise provided in this subsection, and
pursuant to subsection (6), a pupil is counted in membership in the pupil’s
educating district or districts. Except as otherwise provided in this
subsection, an individual pupil must not be counted for more than a total of
1.0 full-time equated membership.

(b) If a pupil is educated in a district other than the pupil’s
district of residence, if the pupil is not being educated as part of a
cooperative education program, if the pupil’s district of residence does not
give the educating district its approval to count the pupil in membership in
the educating district, and if the pupil is not covered by an exception
specified in subsection (6) to the requirement that the educating district must
have the approval of the pupil’s district of residence to count the pupil in
membership, the pupil is not counted in membership in any district.

(c) A special education pupil educated by the intermediate
district is counted in membership in the intermediate district.

(d) A pupil placed by a court or state agency in an
on-grounds program of a juvenile detention facility, a child caring
institution, or a mental health institution, or a pupil funded under section
53a, is counted in membership in the district or intermediate district approved
by the department to operate the program.

(e) A pupil enrolled in the Michigan Schools for the Deaf and
Blind is counted in membership in the pupil’s intermediate district of
residence.

(f) A pupil enrolled in a career and technical education
program supported by a millage levied over an area larger than a single
district or in an area vocational-technical education program established under
section 690 of the revised school code, MCL 380.690, is counted in membership
only in the pupil’s district of residence.

(g) A pupil enrolled in a public school academy is counted in
membership in the public school academy.

(h) For the purposes of this section and section 6a, for a
cyber school, as that term is defined in section 551 of the revised school
code, MCL 380.551, that is in compliance with section 553a of the revised
school code, MCL 380.553a, a pupil’s participation in the cyber school’s
educational program is considered regular daily attendance, and for a district
or public school academy, a pupil’s participation in a virtual course as that
term is defined in section 21f is considered regular daily attendance. Beginning
July 1, 2021, this subdivision is subject to section 8c. It is the intent of
the legislature that the immediately preceding sentence apply retroactively and
is effective July 1, 2021. For the purposes of this subdivision, for a pupil
enrolled in a cyber school, all of the following apply with regard to the
participation requirement as described in this subdivision:

(i) Except as otherwise provided in this
subdivision, the pupil shall participate in each scheduled course on pupil
membership count day or supplemental count day, as applicable. If the pupil is
absent on pupil membership count day or supplemental count day, as applicable,
the pupil must attend and participate in class during the next 10 consecutive
school days if the absence was unexcused, or during the next 30 calendar days
if the absence was excused.

(ii) For a pupil who is not learning
sequentially, 1 or more of the following must be met on pupil membership count
day or supplemental count day, as applicable, for each scheduled course to
satisfy the participation requirement under this subdivision:

(A) The pupil attended a live lesson from the teacher.

(B) The pupil logged into a lesson or lesson activity and the
login can be documented.

(C) The pupil and teacher engaged in a subject-oriented
telephone conversation.

(D) There is documentation of an email dialogue between the
pupil and teacher.

(E) There is documentation of activity or work between the
learning coach and pupil.

(F) An alternate form of attendance as determined and agreed
upon by the cyber school and the pupil membership auditor was met.

(iii) For a pupil using sequential learning,
the participation requirement under this subdivision is satisfied if either of
the following occurs:

(A) Except as otherwise provided in this sub-subparagraph,
the pupil and the teacher of record or mentor complete a 2-way interaction for
1 course during the week on which pupil membership count day or supplemental
count day, as applicable, occurs, and the 3 consecutive weeks following that
week. However, if a school break is scheduled during any of the weeks described
in this sub-subparagraph that is 4 or more days in length or instruction has
been canceled districtwide during any of the weeks described in this
sub-subparagraph for 3 or more school days, the district is not required to
ensure that the pupil and the teacher of record or mentor completed a 2-way
interaction for that week. As used in this sub-subparagraph:

(I) “2-way interaction” means the communication that occurs
between the teacher of record or mentor and pupil, where 1 party initiates
communication and a response from the other party follows that communication.
Responses as described in this sub-sub-subparagraph must be to the
communication initiated by the teacher of record or mentor, and not some other
action taken. This interaction may occur through, but is not limited to, means
such as email, telephone, instant messaging, or face-to-face conversation. A
parent- or legal-guardian-facilitated 2-way interaction is considered a 2-way
interaction if the pupil is in any of grades K to 5 and does not yet possess
the skills necessary to participate in 2-way interactions unassisted. The
interactions described in this sub-sub-subparagraph must relate to a virtual
course on the pupil’s schedule and pertain to course content or progress.

(II) “Mentor” means a professional employee of the district
who monitors the pupil’s progress, ensures the pupil has access to needed
technology, is available for assistance, and ensures access to the teacher of
record. A mentor may also be the teacher of record if the mentor meets the
definition of a teacher of record under this sub-subparagraph and the district
is the provider for the course.

(III) “Teacher of record” means a teacher to whom all of the
following apply:

(1) The teacher is responsible for providing instruction,
determining instructional methods for each pupil, diagnosing learning needs,
assessing pupil learning, prescribing intervention strategies and modifying
lessons, reporting outcomes, and evaluating the effects of instruction and
support strategies. The teacher of record may coordinate the distribution and
assignment of the responsibilities described in this sub-sub-sub-subparagraph
with other teachers participating in the instructional process for a course.

(2) The teacher is certified for the grade level or is
working under a valid substitute permit, authorization, or approval issued by
the department.

(3) The teacher has a personnel identification code provided
by the center.

(IV) “Week” means a period that starts on Wednesday and ends
the following Tuesday.

(B) The pupil completes a combination of 1 or more of the
following activities for each scheduled course on pupil membership count day or
supplemental count day, as applicable:

(I) Documented attendance in a virtual course where
synchronous, live instruction occurred with the teacher.

(II) Documented completion of a course assignment.

(III) Documented completion of a course lesson or lesson
activity.

(IV) Documented pupil access to an ongoing lesson, which does
not include a login.

(V) Documented physical attendance on pupil membership count
day or supplemental count day, as applicable, in each scheduled course, if the
pupil will attend at least 50% of the instructional time for each scheduled
course on-site, face-to-face with the teacher of record. As used in this
sub-sub-subparagraph, “teacher of record” means that term as defined in
subparagraph (iii)(A).

(iv) For purposes of subparagraph (iii), each scheduled course currently being attempted by the
pupil, rather than every course on the pupil’s schedule for the entire term, is
considered a part of each scheduled course for the pupil.

(i) For a new district or public school academy beginning its
operation after December 31, 1994, membership for the first 2 full or partial
fiscal years of operation is determined as follows:

(i) If operations begin before the pupil
membership count day for the fiscal year, membership is the average number of
full-time equated pupils in grades K to 12 actually enrolled and in regular
daily attendance on the pupil membership count day for the current school year
and on the supplemental count day for the current school year, as determined by
the department and calculated by adding the number of pupils registered for
attendance on the pupil membership count day plus pupils received by transfer
and minus pupils lost as defined by rules promulgated by the superintendent,
and as corrected by a subsequent department audit, plus the final audited count
from the supplemental count day for the current school year, and dividing that
sum by 2.

(ii) If operations begin after the pupil
membership count day for the fiscal year and not later than the supplemental
count day for the fiscal year, membership is the final audited count of the
number of full-time equated pupils in grades K to 12 actually enrolled and in
regular daily attendance on the supplemental count day for the current school
year.

(j) If a district is the authorizing body for a public school
academy, then, in the first school year in which pupils are counted in
membership on the pupil membership count day in the public school academy, the
determination of the district’s membership excludes from the district’s pupil
count for the immediately preceding supplemental count day any pupils who are
counted in the public school academy on that first pupil membership count day
who were also counted in the district on the immediately preceding supplemental
count day.

(k) For an extended school year program approved by the
superintendent, a pupil enrolled, but not scheduled to be in regular daily
attendance, on a pupil membership count day, is counted in membership.

(l) To be counted in membership, a pupil
must meet the minimum age requirement to be eligible to attend school under
section 1147 of the revised school code, MCL 380.1147, and must be less than 20
years of age on September 1 of the school year except as follows:

(i) A special education pupil who is
enrolled and receiving instruction in a special education program or service
approved by the department, who does not have a high school diploma, and who is
less than 26 years of age as of September 1 of the current school year is
counted in membership.

(ii) A pupil who is determined by the
department to meet all of the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative
education high school diploma program, that is primarily focused on educating
pupils with extreme barriers to education, such as being homeless as that term
is defined under 42 USC 11302.

(B) Had dropped out of school.

(C) Is less than 22 years of age as of September 1 of the
current school year.

(iii) If a child does not meet the minimum age
requirement to be eligible to attend school for that school year under section
1147 of the revised school code, MCL 380.1147, but will be 5 years of age not
later than December 1 of that school year, the district may count the
child in membership for that school year if the parent or legal guardian has
notified the district in writing that the parent or legal guardian intends to
enroll the child in kindergarten for that school year.

(m) An individual who has achieved a high school diploma is
not counted in membership. An individual who has achieved a high school
equivalency certificate is not counted in membership unless the individual is a
student with a disability as that term is defined in R 340.1702 of the Michigan
Administrative Code. An individual participating in a job training program
funded under former section 107a or a jobs program funded under former section
107b, administered by the department of labor and economic opportunity, or
participating in any successor of either of those 2 programs, is not counted in
membership.

(n) If a pupil counted in membership in a public school
academy is also educated by a district or intermediate district as part of a
cooperative education program, the pupil is counted in membership only in the
public school academy unless a written agreement signed by all parties
designates the party or parties in which the pupil is counted in membership,
and the instructional time scheduled for the pupil in the district or
intermediate district is included in the full-time equated membership determination
under subdivision (q) and section 101. However, for pupils receiving
instruction in both a public school academy and in a district or intermediate
district but not as a part of a cooperative education program, the following
apply:

(i) If the public school academy provides
instruction for at least 1/2 of the class hours required under section 101,
the public school academy receives as its prorated share of the full-time
equated membership for each of those pupils an amount equal to 1 times the
product of the hours of instruction the public school academy provides divided
by the number of hours required under section 101 for full-time equivalency,
and the remainder of the full-time membership for each of those pupils is
allocated to the district or intermediate district providing the remainder of
the hours of instruction.

(ii) If the public school academy provides
instruction for less than 1/2 of the class hours required under section 101,
the district or intermediate district providing the remainder of the hours of
instruction receives as its prorated share of the full-time equated membership
for each of those pupils an amount equal to 1 times the product of the hours of
instruction the district or intermediate district provides divided by the
number of hours required under section 101 for full-time equivalency, and the
remainder of the full-time membership for each of those pupils is allocated to
the public school academy.

(o) An individual less than 16 years of age as of September 1
of the current school year who is being educated in an alternative education
program is not counted in membership if there are also adult education
participants being educated in the same program or classroom.

(p) The department shall give a uniform interpretation of
full-time and part-time memberships.

(q) The number of class hours used to calculate full-time
equated memberships must be consistent with section 101. In determining
full-time equated memberships for pupils who are enrolled in a postsecondary
institution or for pupils engaged in an internship or work experience under
section 1279h of the revised school code, MCL 380.1279h, a pupil is not
considered to be less than a full-time equated pupil solely because of the
effect of the pupil’s postsecondary enrollment or engagement in the internship
or work experience, including necessary travel time, on the number of class
hours provided by the district to the pupil.

(r) Full-time equated memberships for pupils in kindergarten
are determined by dividing the number of instructional hours scheduled and
provided per year per kindergarten pupil by the same number used for
determining full-time equated memberships for pupils in grades 1 to 12.
However, to the extent allowable under federal law, for a district or public
school academy that provides evidence satisfactory to the department that it
used federal title I money in the 2 immediately preceding school fiscal years
to fund full-time kindergarten, full-time equated memberships for pupils in
kindergarten are determined by dividing the number of class hours scheduled and
provided per year per kindergarten pupil by a number equal to 1/2 the number
used for determining full-time equated memberships for pupils in grades 1 to
12. The change in the counting of full-time equated memberships for pupils in
kindergarten that took effect for 2012-2013 is not a mandate.

(s) For a district or a public school academy that has pupils
enrolled in a grade level that was not offered by the district or public school
academy in the immediately preceding school year, the number of pupils enrolled
in that grade level to be counted in membership is the average of the number of
those pupils enrolled and in regular daily attendance on the pupil membership
count day and the supplemental count day of the current school year. Membership
is calculated by adding the number of pupils registered for attendance in that
grade level on the pupil membership count day plus pupils received by transfer
and minus pupils lost as defined by rules promulgated by the superintendent,
and as corrected by subsequent department audit, plus the final audited count
from the supplemental count day for the current school year, and dividing that
sum by 2.

(t) A pupil enrolled in a cooperative education program may
be counted in membership in the pupil’s district of residence with the written
approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district
determines through the district’s alternative or disciplinary education program
that the best instructional placement for a pupil is in the pupil’s home or
otherwise apart from the general school population, if that placement is
authorized in writing by the district superintendent and district alternative
or disciplinary education supervisor, and if the district provides appropriate
instruction as described in this subdivision to the pupil at the pupil’s home
or otherwise apart from the general school population, the district may count
the pupil in membership on a pro rata basis, with the proration based on the
number of hours of instruction the district actually provides to the pupil
divided by the number of hours required under section 101 for full-time
equivalency. For the purposes of this subdivision, a district is considered to
be providing appropriate instruction if all of the following are met:

(i) The district provides at least 2
nonconsecutive hours of instruction per week to the pupil at the pupil’s home
or otherwise apart from the general school population under the supervision of
a certificated teacher.

(ii) The district provides instructional
materials, resources, and supplies that are comparable to those otherwise
provided in the district’s alternative education program.

(iii) Course content is comparable to that in
the district’s alternative education program.

(iv) Credit earned is awarded to the pupil
and placed on the pupil’s transcript.

(v) If a pupil was enrolled in a public school academy on the
pupil membership count day, if the public school academy’s contract with its
authorizing body is revoked or the public school academy otherwise ceases to
operate, and if the pupil enrolls in a district within 45 days after the pupil
membership count day, the department shall adjust the district’s pupil count
for the pupil membership count day to include the pupil in the count.

(w) For a public school academy that has been in operation
for at least 2 years and that suspended operations for at least 1 semester and
is resuming operations, membership is the sum of the product of .90 times the
number of full-time equated pupils in grades K to 12 actually enrolled and in
regular daily attendance on the first pupil membership count day or
supplemental count day, whichever is first, occurring after operations resume,
plus the product of .10 times the final audited count from the most recent
pupil membership count day or supplemental count day that occurred before
suspending operations, as determined by the superintendent.

(x) If a district’s membership for a particular fiscal year,
as otherwise calculated under this subsection, would be less than 1,550 pupils,
the district has 4.5 or fewer pupils per square mile, as determined by the
department, and the district does not receive funding under section 22d(2), the
district’s membership is considered to be the membership figure calculated
under this subdivision. If a district educates and counts in its membership
pupils in grades 9 to 12 who reside in a contiguous district that does not
operate grades 9 to 12 and if 1 or both of the affected districts request the
department to use the determination allowed under this sentence, the department
shall include the square mileage of both districts in determining the number of
pupils per square mile for each of the districts for the purposes of this
subdivision. If a district has established a community engagement advisory
committee in partnership with the department of treasury, is required to submit
a deficit elimination plan or an enhanced deficit elimination plan under
section 1220 of the revised school code, MCL 380.1220, and is located in a city
with a population between 9,000 and 11,000, as determined by the department,
that is in a county with a population between 150,000 and 160,000, as
determined by the department, the district’s membership is considered to be the
membership figure calculated under this subdivision. The membership figure
calculated under this subdivision is the greater of the following:

(i) The average of the district’s membership
for the 3-fiscal-year period ending with that fiscal year, calculated by adding
the district’s actual membership for each of those 3 fiscal years, as otherwise
calculated under this subsection, and dividing the sum of those 3 membership
figures by 3.

(ii) The district’s actual membership for
that fiscal year as otherwise calculated under this subsection.

(y) Full-time equated memberships for special education
pupils who are not enrolled in kindergarten but are enrolled in a classroom
program under R 340.1754 of the Michigan Administrative Code are determined by
dividing the number of class hours scheduled and provided per year by 450.
Full-time equated memberships for special education pupils who are not enrolled
in kindergarten but are receiving early childhood special education services
under R 340.1755 or R 340.1862 of the Michigan Administrative Code are
determined by dividing the number of hours of service scheduled and provided
per year per pupil by 180.

(z) A pupil of a district that begins its school year after
Labor Day who is enrolled in an intermediate district program that begins
before Labor Day is not considered to be less than a full-time pupil solely due
to instructional time scheduled but not attended by the pupil before Labor Day.

(aa) For the first year in which a pupil is counted in
membership on the pupil membership count day in a middle college program, the
membership is the average of the full-time equated membership on the pupil
membership count day and on the supplemental count day for the current school
year, as determined by the department. If a pupil described in this subdivision
was counted in membership by the operating district on the immediately
preceding supplemental count day, the pupil is excluded from the district’s
immediately preceding supplemental count for the purposes of determining the
district’s membership.

(bb) A district or public school academy that educates a
pupil who attends a United States Olympic Education Center may count the pupil
in membership regardless of whether or not the pupil is a resident of this
state.

(cc) A pupil enrolled in a district other than the pupil’s
district of residence under section 1148(2) of the revised school code, MCL
380.1148, is counted in the educating district.

(dd) For a pupil enrolled in a dropout recovery program that
meets the requirements of section 23a, the pupil is counted as 1/12 of a
full-time equated membership for each month that the district operating the
program reports that the pupil was enrolled in the program and was in full
attendance or based on the number of successfully completed courses by the
pupil with each course equivalent to 1/12 of a full-time equated membership. A
district may claim more than 1/12 of a full-time equated membership within a
month for an enrolled pupil who was in full attendance and successfully
completed more than 1 required course. However, if the special membership
counting provisions under this subdivision and the operation of the other
membership counting provisions under this subsection result in a pupil being
counted as more than 1.0 FTE in a fiscal year, the payment made for the pupil
under sections 22a and 22b must not be based on more than 1.0 FTE for that
pupil, and any portion of an FTE for that pupil that exceeds 1.0 is instead
paid under section 25g. The district operating the program shall report to the
center the number of pupils who were enrolled in the program and were in full
attendance for a month not later than 30 days after the end of the month. A district
shall not report a pupil as being in full attendance for a month unless both of
the following are met:

(i) A personalized learning plan is in place
on or before the first school day of the month for the first month the pupil
participates in the program.

(ii) Either of the following is met:

(A) The pupil meets the district’s definition under section
23a of satisfactory monthly progress for that month or, if the pupil does not
meet that definition of satisfactory monthly progress for that month, the pupil
did meet that definition of satisfactory monthly progress in the immediately
preceding month and appropriate interventions, as defined by the district, are
implemented within 10 school days after it is determined that the pupil does
not meet that definition of satisfactory monthly progress.

(B) For the first 2 months that the pupil participates in the
program, the pupil earns 0.25 credit by the end of the second month. A pupil
described in this sub-subparagraph may be retroactively reported as being in
full attendance for the first month that the pupil participated in the program.

(ee) A pupil participating in a virtual course under section
21f is counted in membership in the district enrolling the pupil.

(ff) If a public school academy that is not in its first or
second year of operation closes at the end of a school year and does not reopen
for the next school year, the department shall adjust the membership count of
the district or other public school academy in which a former pupil of the
closed public school academy enrolls and is in regular daily attendance for the
next school year to ensure that the district or other public school academy
receives the same amount of membership aid for the pupil as if the pupil were
counted in the district or other public school academy on the supplemental
count day of the preceding school year.

(gg) If a special education pupil is expelled under section
1311 or 1311a of the revised school code, MCL 380.1311 and 380.1311a, and
is not in attendance on the pupil membership count day because of the
expulsion, and if the pupil remains enrolled in the district and resumes
regular daily attendance during that school year, the district’s membership is
adjusted to count the pupil in membership as if the pupil had been in
attendance on the pupil membership count day.

(hh) A pupil enrolled in a community district is counted in
membership in the community district.

(ii) A part-time pupil enrolled in a nonpublic school in
grades K to 12 in accordance with section 166b must not be counted as more than
0.75 of a full-time equated membership.

(jj) A district that borders another state or a public school
academy that operates at least grades 9 to 12 and is located within 20 miles of
a border with another state may count in membership a pupil who is enrolled in
a course at a college or university that is located in the bordering state and
within 20 miles of the border with this state if all of the following are met:

(i) The pupil would meet the definition of
an eligible student under the postsecondary enrollment options act, 1996 PA
160, MCL 388.511 to 388.524, if the course were an eligible course under that
act.

(ii) The course in which the pupil is
enrolled would meet the definition of an eligible course under the
postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, if
the course were provided by an eligible postsecondary institution under that
act.

(iii) The department determines that the
college or university is an institution that, in the other state, fulfills a
function comparable to a state university or community college, as those terms
are defined in section 3 of the postsecondary enrollment options act, 1996 PA
160, MCL 388.513, or is an independent nonprofit degree-granting college or
university.

(iv) The district or public school academy
pays for a portion of the pupil’s tuition at the college or university in an
amount equal to the eligible charges that the district or public school academy
would pay to an eligible postsecondary institution under the postsecondary
enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, as if the course
were an eligible course under that act.

(v) The district or public school academy
awards high school credit to a pupil who successfully completes a course as
described in this subdivision.

(kk) A pupil enrolled in a middle college program may be
counted for more than a total of 1.0 full-time equated membership for any of
the school years in which the pupil is enrolled in the middle college program,
but the total full-time equated membership for that pupil for all of the school
years in which the pupil is enrolled in high school must not be greater than
5.00 full-time equated membership if the pupil is enrolled in more than the
minimum number of instructional days and hours required under section 101 and
the pupil is expected to complete the 5‑year program with both a high
school diploma and at least 60 transferable college credits or is expected to
earn an associate’s degree in fewer than 5 years. A pupil who graduates with
both a high school diploma and at least 60 transferable college credits or an
associate degree at least 1 semester early is considered to have completed the
middle college program in fewer than 5 years.

(ll) If a district’s or public school academy’s
membership for a particular fiscal year, as otherwise calculated under this
subsection, includes pupils counted in membership who are enrolled under
section 166b, all of the following apply for the purposes of this subdivision:

(i) If the district’s or public school
academy’s membership for pupils counted under section 166b equals or exceeds 5%
of the district’s or public school academy’s membership for pupils not counted
in membership under section 166b in the immediately preceding fiscal year, then
the growth in the district’s or public school academy’s membership for pupils
counted under section 166b must not exceed 10%.

(ii) If the district’s or public school
academy’s membership for pupils counted under section 166b is less than 5% of
the district’s or public school academy’s membership for pupils not counted in
membership under section 166b in the immediately preceding fiscal year,
then the district’s or public school academy’s membership for pupils counted
under section 166b must not exceed the greater of the following:

(A) Five percent of the district’s or public school academy’s
membership for pupils not counted in membership under section 166b.

(B) Ten percent more than the district’s or public school
academy’s membership for pupils counted under section 166b in the immediately
preceding fiscal year.

(iii) If 1 or more districts consolidate or
are parties to an annexation, then the calculations under subparagraphs (i) and (ii) must be applied to the combined total
membership for pupils counted in those districts for the fiscal year
immediately preceding the consolidation or annexation.

(5) “Public school academy” means that term as defined in
section 5 of the revised school code, MCL 380.5.

(6) “Pupil” means an individual in membership in a public
school. A district must have the approval of the pupil’s district of residence
to count the pupil in membership, except approval by the pupil’s district of
residence is not required for any of the following:

(a) A nonpublic part-time pupil enrolled in grades K to 12 in
accordance with section 166b.

(b) A pupil receiving 1/2 or less of the pupil’s instruction
in a district other than the pupil’s district of residence.

(c) A pupil enrolled in a public school academy.

(d) A pupil enrolled in a district other than the pupil’s
district of residence if the pupil is enrolled in accordance with section 105
or 105c.

(e) A pupil who has made an official written complaint or
whose parent or legal guardian has made an official written complaint to law
enforcement officials and to school officials of the pupil’s district of
residence that the pupil has been the victim of a criminal sexual assault or
other serious assault, if the official complaint either indicates that the
assault occurred at school or that the assault was committed by 1 or more other
pupils enrolled in the school the pupil would otherwise attend in the district
of residence or by an employee of the district of residence. A person who
intentionally makes a false report of a crime to law enforcement officials for
the purposes of this subdivision is subject to section 411a of the Michigan
penal code, 1931 PA 328, MCL 750.411a, which provides criminal penalties for
that conduct. As used in this subdivision:

(i) “At school” means in a classroom,
elsewhere on school premises, on a school bus or other school-related vehicle,
or at a school-sponsored activity or event whether or not it is held on school
premises.

(ii) “Serious assault” means an act that
constitutes a felony violation of chapter XI of the Michigan penal code, 1931
PA 328, MCL 750.81 to 750.90h, or that constitutes an assault and infliction of
serious or aggravated injury under section 81a of the Michigan penal code, 1931
PA 328, MCL 750.81a.

(f) A pupil whose district of residence changed after the
pupil membership count day and before the supplemental count day and who
continues to be enrolled on the supplemental count day as a nonresident in the
district in which the pupil was enrolled as a resident on the pupil membership
count day of the same school year.

(g) A pupil enrolled in an alternative education program
operated by a district other than the pupil’s district of residence who meets 1
or more of the following:

(i) The pupil has been suspended or expelled
from the pupil’s district of residence for any reason, including, but not
limited to, a suspension or expulsion under section 1310, 1311, or 1311a of the
revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of
school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the
program by a court.

(h) A pupil enrolled in the Michigan Virtual School, for the
pupil’s enrollment in the Michigan Virtual School.

(i) A pupil who is the child of a person who works at the
district or who is the child of a person who worked at the district as of the
time the pupil first enrolled in the district but who no longer works at the
district due to a workforce reduction. As used in this subdivision, “child”
includes an adopted child, stepchild, or legal ward.

(j) An expelled pupil who has been denied reinstatement by
the expelling district and is reinstated by another school board under section
1311 or 1311a of the revised school code, MCL 380.1311 and 380.1311a.

(k) A pupil enrolled in a district other than the pupil’s
district of residence in a middle college program if the pupil’s district of
residence and the enrolling district are both constituent districts of the same
intermediate district.

(l) A pupil enrolled in a district other
than the pupil’s district of residence who attends a United States Olympic
Education Center.

(m) A pupil enrolled in a district other than the pupil’s
district of residence under section 1148(2) of the revised school code, MCL
380.1148.

(n) A pupil who enrolls in a district other than the pupil’s
district of residence as a result of the pupil’s school not making adequate
yearly progress under the no child left behind act of 2001, Public Law 107-110,
or the every student succeeds act, Public Law 114-95.

However, if a district educates pupils who reside in another
district and if the primary instructional site for those pupils is established
by the educating district after 2009-2010 and is located within the boundaries
of that other district, the educating district must have the approval of that
other district to count those pupils in membership.

(7) “Pupil membership count day” of a district or
intermediate district means:

(a) Except as provided in subdivision (b) or (c), either of
the following:

(i) The first Wednesday in October each
school year.

(ii) For a district or building in which
school is not in session on the Wednesday described in subparagraph (i) due to conditions not within the control of school
authorities, with the approval of the superintendent, the immediately following
day on which school is in session in the district or building.

(b) Except as otherwise provided in subdivision (c), for a
district or intermediate district maintaining school during the entire school
year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(c) If a date listed in subdivision (a) or (b) is on a day of
religious or cultural significance, as determined by the district or
intermediate district, the immediately following day on which school is in
session in the district or building.

(8) “Pupils in grades K to 12 actually enrolled and in
regular daily attendance” means, except as otherwise provided in this section,
pupils in grades K to 12 in attendance and receiving instruction in all classes
for which they are enrolled on the pupil membership count day or the
supplemental count day, as applicable. Except as otherwise provided in this
section and subsection, a pupil who is absent from any of the classes in which
the pupil is enrolled on the pupil membership count day or supplemental count
day and who does not attend each of those classes during the 10 consecutive
school days immediately following the pupil membership count day or
supplemental count day, except for a pupil who has been excused by the
district, is not counted as 1.0 full-time equated membership. Except as
otherwise provided in this section, a pupil who is excused from attendance on
the pupil membership count day or supplemental count day and who fails to
attend each of the classes in which the pupil is enrolled within 30 calendar
days after the pupil membership count day or supplemental count day is not
counted as 1.0 full-time equated membership. Except as otherwise provided in
this section, in addition, a pupil who was enrolled and in attendance in a
district, intermediate district, or public school academy before the pupil
membership count day or supplemental count day of a particular year but was
expelled or suspended on the pupil membership count day or supplemental count
day is only counted as 1.0 full-time equated membership if the pupil resumed
attendance in the district, intermediate district, or public school academy
within 45 days after the pupil membership count day or supplemental count day
of that particular year. Except as otherwise provided in this section, a pupil
not counted as 1.0 full-time equated membership due to an absence from a class
is counted as a prorated membership for the classes the pupil attended. For
purposes of this subsection:

(a) “Appropriately placed” means holding a valid Michigan
educator credential with the required grade range and discipline or subject
area for the assignment, as defined by the superintendent of public
instruction.

(b) “Class” means either of the following, as applicable:

(i) A period of time in 1 day when pupils
and an individual who is appropriately placed under a valid certificate,
substitute permit, authorization, or approval issued by the department, are
together and instruction is taking place. This subdivision does not apply for
the 2024-2025 and 2025-2026 school years.

(ii) For the 2024-2025 and 2025-2026 school
years only, a period of time in 1 day when pupils and a certificated teacher, a
teacher engaged to teach under section 1233b of the revised school code, MCL
380.1233b, or an individual working under a valid substitute permit,
authorization, or approval issued by the department are together and
instruction is taking place.

(9) “Rule” means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(10) “The revised school code” means the revised school code,
1976 PA 451, MCL 380.1 to 380.1852.

(11) “School district of the first class”, “first class
school district”, and “district of the first class” mean, for the purposes of
this article only, a district that had at least 40,000 pupils in membership for
the immediately preceding fiscal year.

(12) “School fiscal year” means a fiscal year that commences
July 1 and continues through June 30.

(13) “State board” means the state board of education.

(14) “Superintendent”, unless the context clearly refers to a
district or intermediate district superintendent, means the superintendent of
public instruction described in section 3 of article VIII of the state
constitution of 1963.

(15) “Supplemental count day” means the day on which the
supplemental pupil count is conducted under section 6a.

(16) “Tuition pupil” means a pupil of school age attending
school in a district other than the pupil’s district of residence for whom
tuition may be charged to the district of residence. Tuition pupil does not
include a pupil who is a special education pupil, a pupil described in
subsection (6)(d) to (n), or a pupil whose parent or guardian voluntarily enrolls
the pupil in a district that is not the pupil’s district of residence. A pupil’s
district of residence shall not require a high school tuition pupil, as
provided under section 111, to attend another school district after the pupil
has been assigned to a school district.

(17) “State school aid fund” means the state school aid fund
established in section 11 of article IX of the state constitution of 1963.

(18) “Taxable value” means, except as otherwise provided in
this article, the taxable value of property as determined under section 27a of
the general property tax act, 1893 PA 206, MCL 211.27a.

(19) “Textbook” means a book, electronic book, or other
instructional print or electronic resource that is selected and approved by the
governing board of a district and that contains a presentation of principles of
a subject, or that is a literary work relevant to the study of a subject
required for the use of classroom pupils, or another type of course material
that forms the basis of classroom instruction.

(20) “Total state aid” or “total state school aid”, except as
otherwise provided in this article, means the total combined amount of all
funds due to a district, intermediate district, or other entity under this
article.

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, 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 from the state school aid fund, the sum of $73,151,100.00
from the general fund, an amount not to exceed $100,000,000.00 from the school
consolidation and infrastructure fund created under section 11x, 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
$18,000,000.00 from the great start readiness program reserve fund created
under section 32e, an amount not to exceed $30,000,000.00 from the educator
fellowship public provider fund created under section 27d, an amount not to
exceed $97,037,400.00 from the state school aid pupil support reserve fund
created under section 22r, and an amount not to exceed $600,000.00 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 ending September 30, 2025 and September 30, 2026.

(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.
11a. (1) The school aid stabilization fund is created as a separate account
within the state school aid fund.

(2) The state treasurer may receive money or other assets
from any source for deposit into the school aid stabilization fund. The state
treasurer shall deposit into the school aid stabilization fund all of the
following:

(a) Unexpended and unencumbered state school aid fund revenue
for a fiscal year that remains in the state school aid fund as of the
bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid
stabilization fund.

(c) Money appropriated to the school aid stabilization fund.

(3) Money available in the school aid stabilization fund may
not be expended without a specific appropriation from the school aid
stabilization fund. Money in the school aid stabilization fund must be expended
only for purposes for which state school aid fund money may be expended.

(4) The state treasurer shall direct the investment of the
school aid stabilization fund. The state treasurer shall credit to the school
aid stabilization fund interest and earnings from fund investments.

(5) Money in the school aid stabilization fund at the close
of a fiscal year remains in the school aid stabilization fund and does not
lapse to the unreserved school aid fund balance or the general fund.

(6) If the maximum amount appropriated under section 11 from
the state school aid fund for a fiscal year exceeds the amount available for
expenditure from the state school aid fund for that fiscal year, there is
appropriated from the school aid stabilization fund to the state school aid
fund an amount equal to the projected shortfall as determined by the department
of treasury, but not to exceed available money in the school aid stabilization
fund. If the money in the school aid stabilization fund is insufficient to
fully fund an amount equal to the projected shortfall, the state budget
director shall notify the legislature as required under section 296(2) and
state payments in an amount equal to the remainder of the projected shortfall
must be prorated in the manner provided under section 296(3).

(7) For 2025-2026 in addition to the appropriations in
section 11, there is appropriated from the school aid stabilization fund to the
state school aid fund the amount necessary to fully fund the allocations under
this article.

Sec.
11j. From the state school aid fund money appropriated in section 11, there is
allocated an amount not to exceed $23,000,000.00 for 2025-2026 for payments to
the school loan bond redemption fund in the department of treasury on behalf of
districts and intermediate districts. Notwithstanding section 296 or any other
provision of this act, funds allocated under this section are not subject to
proration and must be paid in full.

Sec.
11k. For 2025-2026, there is appropriated from the general fund to the school
loan revolving fund an amount equal to the amount of school bond loans assigned
to the Michigan finance authority, not to exceed the total amount of school
bond loans held in reserve as long-term assets. As used in this section, “school
loan revolving fund” means that fund created in section 16c of the shared
credit rating act, 1985 PA 227, MCL 141.1066c.

Sec.
11m. From the state school aid fund money appropriated in section 11, there is
allocated for 2025-2026 an amount not to exceed $5,000,000.00 for fiscal year
cash-flow borrowing costs solely related to the state school aid fund
established under section 11 of article IX of the state constitution of 1963.

Sec.
11s. (1) From the state school aid fund money appropriated in section 11, there
is allocated $5,000,000.00 for 2025-2026 only and from the general fund money
appropriated in section 11, there is allocated $3,000,000.00 for 2025-2026 only
for the purpose of providing services and programs to children who reside
within the boundaries of a district with the majority of its territory located
within the boundaries of a city for which an executive proclamation of
emergency concerning drinking water is issued in the current or immediately
preceding 10 fiscal years under the emergency management act, 1976 PA 390, MCL
30.401 to 30.421, and that has at least 4,500 pupils in membership for the
2016-2017 fiscal year or has at least 2,600 pupils in membership for a fiscal
year after 2016-2017.

(2) From the general fund money allocated in subsection (1),
there is allocated to a district with the majority of its territory located
within the boundaries of a city for which an executive proclamation of
emergency concerning drinking water is issued in the current or immediately
preceding 10 fiscal years under the emergency management act, 1976 PA 390, MCL
30.401 to 30.421, and that has at least 4,500 pupils in membership for the
2016-2017 fiscal year or has at least 2,600 pupils in membership for a fiscal
year after 2016-2017, an amount not to exceed $2,425,000.00 for 2025-2026 for
the purpose of employing school nurses, classroom aides, school social workers,
and community health workers; for the provision of behavioral or mental health
supports, parental engagement activities, community coordination activities, and
other support services; and for purchasing program supplies. The district shall
provide a report to the department in a form, manner, and frequency prescribed
by the department. The department shall provide a copy of that report to the
governor, the house and senate school aid subcommittees, the house and senate
fiscal agencies, and the state budget director within 5 days after receipt. The
report must provide at least the following information:

(a) How many personnel were hired using the funds allocated
under this subsection.

(b) A description of the services provided to pupils by those
personnel.

(c) How many pupils received each type of service identified
in subdivision (b).

(d) Any other information the department considers necessary
to ensure that the children described in subsection (1) received appropriate
levels and types of services.

(3) For 2025-2026 only, from the general fund money allocated
in subsection (1), there is allocated an amount not to exceed $575,000.00 for
nutritional services to children described in subsection (1).

(4) For 2025-2026 only, from the state school aid fund money
allocated in subsection (1), there is allocated an amount not to exceed
$5,000,000.00 to an intermediate district that has a constituent district
described in subsection (2) for interventions and supports for students in
grades K to 12 who were impacted by an executive proclamation of emergency
described in subsection (1) concerning drinking water. Funds under this
subsection must be used for behavioral supports, social workers, counselors, psychologists,
nursing services, including, but not limited to, vision and hearing services,
transportation services, parental engagement, community coordination, and other
support services.

(5) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
11x. (1) The school consolidation and infrastructure fund is created as a
separate account within the state school aid fund for the purpose of improving
student academic outcomes, increasing the efficiency of the state’s public
education system, and creating a healthy and safe space for students in this
state.

(2) The state treasurer may receive money or other assets
from any source for deposit into the school consolidation and infrastructure
fund. The state treasurer shall direct the investment of the school
consolidation and infrastructure fund. The state treasurer shall credit to the
school consolidation and infrastructure fund interest and earnings from school
consolidation and infrastructure fund investments.

(3) Money in the school consolidation and infrastructure fund
at the close of the fiscal year remains in the school consolidation and
infrastructure fund and does not lapse to the state school aid fund or the
general fund.

(4) The department of treasury is the administrator of the
school consolidation and infrastructure fund for auditing purposes.

(5) Money available in the school consolidation and
infrastructure fund must not be expended without a specific appropriation.

(6) From the state school aid fund money
appropriated under section 11, there is allocated for 2022-2023 only an amount
not to exceed $5,000,000.00 for grants to districts and intermediate districts
to support the cost of a feasibility study or analysis of consolidation or the
consolidation of services among 1 or more buildings within a district, among 1
or more districts, or among 1 or more intermediate districts. Districts and
intermediate districts may apply for a grant under this subsection to the
department on a first-come, first-serve basis. The maximum amount of a grant to
be distributed under this subsection may not exceed $250,000.00.
Notwithstanding section 17b, the department shall make payments under this
subsection on a schedule determined by the department.

(7) To be eligible for a grant under subsection (6), a
district or intermediate district must demonstrate to the department, in the
manner prescribed by the department, that it will conduct a feasibility study
or analysis and that all of the following will be met:

(a) Within 30 days after completion of the study or analysis,
the district or intermediate district will make the results of the study or
analysis available to all districts and intermediate districts included in the
study or analysis. Within 60 days after the completion of the study or
analysis, the district or intermediate district will make the results available
on a publicly available website.

(b) The study or analysis may include, but is not limited to,
consolidation opportunities in the following areas:

(i) Financial services, which may include,
but is not limited to, the following:

(A) Budgeting and staffing.

(B) Payroll.

(C) Employee benefits.

(D) State reporting.

(E) Software consolidation to achieve common software
throughout the intermediate district.

(ii) Human resources, which may include, but
is not limited to, the following:

(A) Onboarding.

(B) Title IX administration.

(C) Hiring.

(D) Software consolidation to achieve common software
throughout the intermediate district.

(iii) Information technology, which may
include, but is not limited to, the following:

(A) Software consolidation to achieve common software
throughout the intermediate district.

(B) Fiber projects.

(C) Cybersecurity.

(D) One-to-one device management.

(iv) Grant management and reporting, which
may include, but is not limited to, the following:

(A) Management of all state grant sites and databases.

(B) Grant reporting.

(v) Cash management, which may include, but
is not limited to, the opportunities for intermediate districts and districts
to contract on cash flow management to maximize interest earnings.

(vi) Debt issuance and management, including
at least all of the following:

(A) Refunding opportunities.

(B) New bond issue analysis.

(vii) School facility consolidation.

(viii) Consolidation of transportation-related
activities.

(ix) The physical consolidation of districts.

(8) An intermediate district that receives a grant under this
section shall meet with its constituent districts located within the
intermediate district to discuss the results of the study or analysis and to
implement changes where feasible. The application for an intermediate district
must include a brief description of how the intermediate district will conduct
these meetings.

(9) To be eligible for the receipt of funding for
infrastructure-related projects appropriated from the school consolidation and
infrastructure fund created under this section, a district must allow for the
facility condition assessments described in section 11y to be conducted in the
district. It is the intent of the legislature that money in the school
consolidation and infrastructure fund will not be appropriated for
infrastructure projects until the completion of the facility condition
assessments described in section 11y.

(10) For 2025-2026, $83,400,000.00 from the school
consolidation and infrastructure fund must be deposited into the state school
aid fund.

Sec.
12d. (1) From the school consolidation and infrastructure fund created under
section 11x, there is allocated for 2023-2024 only an amount not to exceed
$110,000,000.00 for the purposes of this section.

(2) From the amount allocated in subsection (1), there is allocated
an amount not to exceed $75,000,000.00 for grants to districts and intermediate
districts to support costs related to internal consolidation within the
district or intermediate district. All of the following apply to grants under
this subsection:

(a) The department shall allow grants for applicants that
have already taken actions for internal consolidation within the previous 2
years and grants for applicants that have not yet begun internal consolidation
activities.

(b) The department shall prioritize applications from
districts and intermediate districts that meet any of the following criteria:

(i) Are in an opportunity index band, as
described in section 31a, of 3 or higher.

(ii) Are an intermediate district for which
the percentage of pupils in membership who were determined to be economically
disadvantaged in the immediately preceding fiscal year is equal to or greater
than the minimum percentage for a district or public school academy to be in an
opportunity index band, as described in section 31a, of 3 or higher.

(iii) Are experiencing declining enrollment.

(iv) Have no ability to issue bonds for
infrastructure needs, or have made a good-faith effort, as determined by the
department, to issue bonds for infrastructure needs.

(c) Grants may be used for operational expenses related to
internal consolidation and for infrastructure needs. Infrastructure needs may
include, but are not limited to, the removal of buildings.

(3) From the amount allocated in subsection (1),
$35,000,000.00 is allocated as follows:

(a) $15,000,000.00 to Detroit Public Schools Community
District to support the construction of the Cooley High School athletic
complex.

(b) $10,000,000.00 to Wayne RESA to support the construction
of an academic and professional building in the city of Wayne.

(c) $5,000,000.00 to Beecher Community School District to
support the construction of a high school in the district.

(d) $4,000,000.00 to Taylor School District for costs related
to a new high school in the district.

(e) $1,000,000.00 to the School District of the City of
Hamtramck to support the costs of building infrastructure upgrades and
maintenance.

(4) Subject to the provisions of this subsection, in addition
to the money appropriated in section 11, from the state school aid fund, there
is appropriated and allocated for 2025-2026 an amount not to exceed
$4,000,000.00 to Taylor School District for costs related to a new high school
in the district or for other infrastructure purposes. The appropriation and
allocation under this subsection is contingent on the effective issuance of a
directive by the budget director, pursuant to section 451a of the management
and budget act, 1984 PA 431, MCL 18.451a, to lapse $4,000,000.00 of remaining
funding from a work project that was established under this section in
2023-2024. The amount allocated under this subsection may not exceed the amount
lapsed from the work project referenced in the immediately preceding sentence.

(5) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
12e. (1) From the school consolidation and infrastructure fund money
appropriated in section 11, there is allocated for 2025-2026 only an amount
estimated at $100,000,000.00 for grants to districts and intermediate districts
for infrastructure needs as described in this section.

(2) Districts and intermediate districts must apply on a
competitive basis for funding in a form and manner determined by the
department.

(3) If the amount allocated under subsection (1) is
insufficient to fully fund awards under this section, there is appropriated
from the school consolidation and infrastructure fund described in section 11x
the amount necessary to fully fund these awards, or the maximum available in
the fund, whichever is less. The state budget director shall provide
notification to the house and senate appropriations subcommittees on school aid
and the house and senate fiscal agencies regarding any additional appropriation
described in this subsection.

(4) The department shall prioritize applications from
districts and intermediate districts that meet any of the following criteria:

(a) Are in an opportunity index band, as described in section
31a, of 4 or higher.

(b) Are an intermediate district for which the percentage of
pupils in membership who were determined to be economically disadvantaged in
the immediately preceding fiscal year is equal to or greater than the minimum
percentage for a district or public school academy to be in an opportunity index
band, as described in section 31a, of 4 or higher.

(c) Have infrastructure needs related to HVAC systems or
roofing.

(d) Have no ability to issue bonds for infrastructure needs,
or have made a good-faith effort, as determined by the department, to issue
bonds for infrastructure needs.

(5) Funds awarded in subsection (4) may be used only to
address infrastructure needs that were identified in the statewide school
facilities study issued pursuant to section 11y.

(6) The funds allocated under this section for 2025-2026 are
a work project appropriation, and any unexpended funds for 2025-2026 are
carried forward into 2026-2027. The purpose of the work project is to fund
district and intermediate district infrastructure needs. The estimated
completion date of the work project is September 30, 2030.

(7) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
15. (1) If a district or intermediate district fails to receive its proper
apportionment, the department, upon satisfactory proof that the district or
intermediate district was entitled justly, shall apportion the deficiency in
the next apportionment. Subject to subsections (2) and (3), if a district or
intermediate district has received more than its proper apportionment, the
department, upon satisfactory proof, shall deduct the excess in the next
apportionment. Notwithstanding any other provision in this article, state aid
overpayments to a district, other than overpayments in payments for special
education or special education transportation, may be recovered from any
payment made under this article other than a special education or special
education transportation payment, from the proceeds of a loan to the district
under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or
from the proceeds of millage levied or pledged under section 1211 of the
revised school code, MCL 380.1211. State aid overpayments made in special
education or special education transportation payments may be recovered from
subsequent special education or special education transportation payments, from
the proceeds of a loan to the district under the emergency municipal loan act,
1980 PA 243, MCL 141.931 to 141.942, or from the proceeds of millage levied or
pledged under section 1211 of the revised school code, MCL 380.1211.

(2) If the result of an audit conducted by or for the
department affects the current fiscal year membership, the department shall
adjust affected payments in the current fiscal year. A deduction due to an
adjustment made as a result of an audit conducted by or for the department, or
as a result of information obtained by the department from the district, an
intermediate district, the department of treasury, or the office of auditor
general, must be deducted from the district’s apportionments when the adjustment
is finalized. At the request of the district and upon the district presenting
evidence satisfactory to the department of the hardship, the department may
grant up to an additional 4 years for the adjustment and may advance payments
to the district otherwise authorized under this article if the district would
otherwise experience a significant hardship in satisfying its financial
obligations. However, a district that presented satisfactory evidence of
hardship and was undergoing an extended adjustment during 2018-2019 may
continue to use the period of extended adjustment as originally granted by the
department.

(3) If, based on an audit by the department or the department’s
designee or because of new or updated information received by the department,
the department determines that the amount paid to a district or intermediate
district under this article for the current fiscal year or a prior fiscal year
was incorrect, the department shall make the appropriate deduction or payment
in the district’s or intermediate district’s allocation in the next
apportionment after the adjustment is finalized. The department shall calculate
the deduction or payment according to the law in effect in the fiscal year in
which the incorrect amount was paid. If the district does not receive an
allocation for the fiscal year or if the allocation is insufficient to pay the
amount of any deduction, the amount of any deduction otherwise applicable must
be satisfied from the proceeds of a loan to the district under the emergency
municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds
of millage levied or pledged under section 1211 of the revised school code, MCL
380.1211, as determined by the department.

(4) If the department makes an adjustment under this section
based in whole or in part on a membership audit finding that a district or
intermediate district employed an educator in violation of certification
requirements under the revised school code and rules promulgated by the
department, the department shall prorate the adjustment according to the period
of noncompliance with the certification requirements.

(5) The department may conduct audits, or may direct audits
by designee of the department, for the current fiscal year and the immediately
preceding fiscal year of all records related to a program for which a district
or intermediate district has received funds under this article.

(6) Expenditures made by departments under this article that
are caused by the write-off of prior year accruals may be funded by revenue
from the write-off of prior year accruals.

(7) In addition to funds appropriated in section 11 for all
programs and services, there is appropriated for 2024-2025 and 2025-2026 for
obligations in excess of applicable appropriations an amount equal to the
collection of overpayments, but not to exceed amounts available from
overpayments.

Sec.
18. (1) Except as provided in another section of this article, each district or
other entity shall apply the money received by the district or entity under
this article to salaries and other compensation of teachers and other
employees, tuition, transportation, lighting, heating, ventilation, water
service, the purchase of textbooks, other supplies, and any other school
operating expenditures defined in section 7. However, not more than 20% of the
total amount received by a district under sections 22a and 22b or received by
an intermediate district under section 81 may be transferred by the board to
either the capital projects fund or to the debt retirement fund for debt
service. A district or other entity shall not apply or take the money for a
purpose other than as provided in this section. The department shall determine
the reasonableness of expenditures and may withhold from a recipient of funds
under this article the apportionment otherwise due upon a violation by the
recipient. A district must not be prohibited or limited from using funds
appropriated or allocated under this article that are permitted for use for
noninstructional services to contract or subcontract with an intermediate
district, third party, or vendor for the noninstructional services.

(2) A district or intermediate district shall adopt an annual
budget in a manner that complies with the uniform budgeting and accounting act,
1968 PA 2, MCL 141.421 to 141.440a. Within 15 days after a district board
adopts its annual operating budget for the following school fiscal year, or
after a district board adopts a subsequent revision to that budget, the
district shall make all of the following available through a link on its
website homepage, or may make the information available through a link on its
intermediate district’s website homepage, in a form and manner prescribed by
the department:

(a) The annual operating budget and subsequent budget
revisions.

(b) Using data that have already been collected and submitted
to the department, a summary of district expenditures for the most recent
fiscal year for which they are available, expressed in the following 2 visual
displays:

(i) A chart of personnel expenditures,
broken into the following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,
medical, dental, vision, life, disability, and long-term care benefits.

(C) Retirement benefit costs.

(D) All other personnel costs.

(ii) A chart of all district expenditures,
broken into the following subcategories:

(A) Instruction.

(B) Support services.

(C) Business and administration.

(D) Operations and maintenance.

(c) Links to all of the following:

(i) The current collective bargaining
agreement for each bargaining unit.

(ii) Each health care benefits plan,
including, but not limited to, medical, dental, vision, disability, long-term
care, or any other type of benefits that would constitute health care services,
offered to any bargaining unit or employee in the district.

(iii) The audit report of the financial audit
conducted under subsection (4) for the most recent fiscal year for which it is
available.

(iv) The bids required under section 5 of the
public employees health benefit act, 2007 PA 106, MCL 124.75.

(v) The district’s written policy governing
procurement of supplies, materials, and equipment.

(vi) The district’s written policy
establishing specific categories of reimbursable expenses, as described in
section 1254(2) of the revised school code, MCL 380.1254.

(vii) Either the district’s accounts payable
check register for the most recent school fiscal year or a statement of the
total amount of expenses incurred by board members or employees of the district
that were reimbursed by the district for the most recent school fiscal year.

(d) The total salary and a description and cost of each
fringe benefit included in the compensation package for the superintendent of
the district and for each employee of the district whose salary exceeds
$100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services.
As used in this subdivision, “lobbying” means that term as defined in section 5
of 1978 PA 472, MCL 4.415.

(g) Any deficit elimination plan or enhanced deficit
elimination plan the district was required to submit under the revised school
code.

(h) Identification of all credit cards maintained by the
district as district credit cards, the identity of all individuals authorized
to use each of those credit cards, the credit limit on each credit card, and
the dollar limit, if any, for each individual’s authorized use of the credit
card.

(i) Costs incurred for each instance of out-of-state travel
by the school administrator of the district that is fully or partially paid for
by the district and the details of each of those instances of out-of-state
travel, including at least identification of each individual on the trip,
destination, and purpose.

(3) For the information required under subsection (2)(a),
(2)(b)(i), and (2)(c), an intermediate district
shall provide the same information in the same manner as required for a
district under subsection (2).

(4) For the purposes of determining the reasonableness of
expenditures, whether a district or intermediate district has received the
proper amount of funds under this article, and whether a violation of this
article has occurred, all of the following apply:

(a) The department shall require that each district and
intermediate district have an audit of the district’s or intermediate district’s
financial and pupil accounting records conducted at least annually, and at such
other times as determined by the department, at the expense of the district or
intermediate district, as applicable. The audits must be performed by a
certified public accountant or by the intermediate district superintendent, as
may be required by the department, or in the case of a district of the first
class by a certified public accountant, the intermediate superintendent, or the
auditor general of the city. A district or intermediate district shall retain
these records for the current fiscal year and from at least the 3 immediately
preceding fiscal years.

(b) If a district operates in a single building with fewer
than 700 full-time equated pupils, if the district has stable membership, and
if the error rate of the immediately preceding 2 pupil accounting field audits
of the district is less than 2%, the district may have a pupil accounting field
audit conducted biennially but must continue to have desk audits for each pupil
count. The auditor must document compliance with the audit cycle in the pupil
auditing manual. As used in this subdivision, “stable membership” means that
the district’s membership for the current fiscal year varies from the district’s
membership for the immediately preceding fiscal year by less than 5%.

(c) A district’s or intermediate district’s annual financial
audit must include an analysis of the financial and pupil accounting data used
as the basis for distribution of state school aid.

(d) The pupil and financial accounting records and reports,
audits, and management letters are subject to requirements established in the
auditing and accounting manuals approved and published by the department.

(e) All of the following must be done not later than November
1 each year for reporting the prior fiscal year data:

(i) A district shall file the annual
financial audit reports with the intermediate district and the department. If the
issuance of single audits is delayed for the 2024-25 school year due to a late
issuance of a Compliance Supplement, the single audit portion of that audit
must be filed within 30 days of the issuance of the Compliance Supplement by
OMB.

(ii) The intermediate district shall file the
annual financial audit reports for the intermediate district with the
department. If the issuance of single audits is delayed for the 2024-25
school year due to a late issuance of a Compliance Supplement, the single audit
portion of that audit must be filed within 30 days of the issuance of the
Compliance Supplement by OMB.

(iii) The intermediate district shall enter
the pupil membership audit reports, known as the audit narrative, for its
constituent districts and for the intermediate district, for the pupil
membership count day and supplemental count day, in the Michigan student data
system.

(f) The annual financial audit reports and pupil accounting
procedures reports must be available to the public in compliance with the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(g) Not later than January 31 of each year, the department
shall notify the state budget director and the legislative appropriations
subcommittees responsible for review of the school aid budget of districts and
intermediate districts that have not filed an annual financial audit and pupil
accounting procedures report required under this section for the school year
ending in the immediately preceding fiscal year.

(5) By the first business day in November of each fiscal
year, each district and intermediate district shall submit to the center, in a
manner prescribed by the center, annual comprehensive financial data consistent
with the district’s or intermediate district’s audited financial statements and
consistent with accounting manuals and charts of accounts approved and
published by the department. For an intermediate district, the report must also
contain the website address where the department can access the report required
under section 620 of the revised school code, MCL 380.620. The department shall
ensure that the prescribed Michigan public school accounting manual chart of
accounts includes standard conventions to distinguish expenditures by allowable
fund function and object. The functions must include at minimum categories for
instruction, pupil support, instructional staff support, general
administration, school administration, business administration, transportation,
facilities operation and maintenance, facilities acquisition, and debt service;
and must include object classifications of salary, benefits, including
categories for active employee health expenditures, purchased services,
supplies, capital outlay, and other. A district shall report the required level
of detail consistent with the manual as part of the comprehensive annual
financial report.

(6) By the last business day in September of each year, each
district and intermediate district shall file with the center the special
education actual cost report, known as “SE-4096”, on a form and in the manner
prescribed by the center. An intermediate district shall certify the audit of a
district’s report.

(7) By not later than 1 week after the last business day in
September of each year, each district and intermediate district shall file with
the center the audited transportation expenditure report, known as “SE-4094”,
on a form and in the manner prescribed by the center. An intermediate district
shall certify the audit of a district’s report.

(8) The department shall review its pupil accounting and
pupil auditing manuals at least annually and shall periodically update those
manuals to reflect changes in this article. Any changes to the pupil accounting
manual that are applicable for the school year that begins after March 31 of a
fiscal year must be published by not later than March 31 of that fiscal year.
However, if legislation is enacted that necessitates adjustments to the pupil
accounting manual after March 31 of a fiscal year, and a district incurs a
violation of the amended pupil accounting manual in the subsequent fiscal year,
the department must notify the district of that violation and allow the
district 30 days to correct the violation before the department is allowed to
impose financial penalties under this act related to the violation.

(9) If a district that is a public school academy purchases
property using money received under this article, the public school academy
shall retain ownership of the property unless the public school academy sells
the property at fair market value.

(10) If a district or intermediate district does not comply
with subsections (4), (5), (6), (7), and (12), or if the department determines
that the financial data required under subsection (5) are not consistent with
audited financial statements, the department shall withhold all state school
aid due to the district or intermediate district under this article, beginning
with the next payment due to the district or intermediate district, until the
district or intermediate district complies with subsections (4), (5), (6), (7),
and (12). If the district or intermediate district does not comply with
subsections (4), (5), (6), (7), and (12) by the end of the fiscal year, the
district or intermediate district forfeits the amount withheld.

(11) If a district or intermediate district does not comply
with subsection (2), the department may withhold up to 10% of the total state
school aid due to the district or intermediate district under this article,
beginning with the next payment due to the district or intermediate district,
until the district or intermediate district complies with subsection (2). If
the district or intermediate district does not comply with subsection (2) by
the end of the fiscal year, the district or intermediate district forfeits the
amount withheld.

(12) By November 1 of each year, if a district or
intermediate district offers virtual learning under section 21f, or for a
school of excellence that is a cyber school, as defined in section 551 of the
revised school code, MCL 380.551, the district or intermediate district shall
submit to the department a report that details the per-pupil costs of operating
the virtual learning by vendor type and virtual learning model. The report must
include information concerning the operation of virtual learning for the
immediately preceding school fiscal year, including information concerning
summer programming. Information must be collected in a form and manner
determined by the department and must be collected in the most efficient manner
possible to reduce the administrative burden on reporting entities.

(13) By March 31 of each year, the department shall submit to
the house and senate appropriations subcommittees on state school aid, the
state budget director, and the house and senate fiscal agencies a report
summarizing the per-pupil costs by vendor type of virtual courses available
under section 21f and virtual courses provided by a school of excellence that
is a cyber school, as defined in section 551 of the revised school code, MCL 380.551.

(14) As used in subsections (12) and (13), “vendor type”
means the following:

(a) Virtual courses provided by the Michigan Virtual
University.

(b) Virtual courses provided by a school of excellence that
is a cyber school, as defined in section 551 of the revised school code, MCL
380.551.

(c) Virtual courses provided by third party vendors not
affiliated with a public school in this state.

(d) Virtual courses created and offered by a district or
intermediate district.

(15) An allocation to a district or another entity under this
article is contingent upon the district’s or entity’s compliance with this
section.

(16) The department shall annually submit to the senate and
house subcommittees on school aid and to the senate and house standing
committees on education an itemized list of allocations under this article to
any association or consortium consisting of associations in the immediately
preceding fiscal year. The report must detail the recipient or recipients, the
amount allocated, and the purpose for which the funds were distributed.

Sec.
18d. It is the
intent of the legislature that, in any fiscal year that the target foundation
allowance in section 20 is increased, a district use a portion of the increase
to make permanent increases to the compensation of educators and staff within
the district, with priority given to increasing starting salaries.

Sec.
19. (1) A district or intermediate district shall comply with all applicable
reporting requirements specified in state and federal law. Data provided to the
center, in a form and manner prescribed by the center, must be aggregated and
disaggregated as required by state and federal law. In addition, a district or
intermediate district shall cooperate with all measures taken by the center to
establish and maintain a statewide P-20 longitudinal data system.

(2) Each district shall furnish to the center not later than
5 weeks after the pupil membership count day and by the last business day in
June of the school fiscal year ending in the fiscal year, in a manner
prescribed by the center, the information necessary for the preparation of the
district and high school graduation report, information regarding completion of
early middle college credentials obtained and postsecondary credits obtained in
any college acceleration program, and information necessary for the preparation
of the state and federal accountability reports. This information must meet
requirements established in the pupil auditing manual approved and published by
the department. The center shall calculate an annual graduation and pupil
dropout rate for each high school, each district, and this state, in compliance
with nationally recognized standards for these calculations. The center shall
report all graduation and dropout rates to the senate and house education
committees and appropriations committees, the state budget director, and the
department not later than 30 days after the publication of the list described
in subsection (5). Before reporting these graduation and dropout rates, the
department shall allow a school or district to appeal the calculations. The
department shall consider and act upon the appeal within 30 days after it is
submitted and shall not report these graduation and dropout rates until after
all appeals have been considered and decided.

(3) By the first business day in December and by the last
business day in June of each year, a district shall furnish to the center, in a
manner prescribed by the center, information related to educational personnel
and personnel vacancies as necessary for reporting required by state and
federal law. For the purposes of this subsection, the center shall only require
districts and intermediate districts to report information that is not already
available from the office of retirement services in the department of
technology, management, and budget.

(4) If a district or intermediate district fails to meet the
requirements of this section, the department shall withhold 5% of the total
funds for which the district or intermediate district qualifies under this
article until the district or intermediate district complies with this section.
If the district or intermediate district does not comply with this section by
the end of the fiscal year, the department shall place the amount withheld in
an escrow account until the district or intermediate district complies with
this section.

(5) Before publishing a list of school or district
accountability designations as required by the no child left behind act of
2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95,
and utilizing data that were certified as accurate and complete after districts
and intermediate districts adhered to deadlines, data quality reviews, and
correction processes leading to local certification of final student data in
subsection (2), the department shall allow a school or district to appeal any
calculation errors used in the preparation of accountability metrics. The
department shall consider and act upon the appeal within 30 days after it is
submitted and shall not publish the list until after all appeals have been
considered and decided.

(6) The department shall implement statewide standard
reporting requirements for education data approved by the department in
conjunction with the center. The department shall work with the center,
intermediate districts, districts, and other interested stakeholders to
implement this policy change. A district or intermediate district shall
implement the statewide standard reporting requirements not later than
2017-2018 or when a district or intermediate district updates its education
data reporting system, whichever is later.

(7) A district or intermediate district shall collect and
submit to the center tribal affiliation data for all students and staff and the
identification of student participation in federal programs funded under 20 USC
7401 to 7546 and participation in federal programs funded under the Johnson-O’Malley
Supplemental Indian Education Program Modernization Act, Public Law 115-404.
The data must be reported in a form and manner prescribed by the center in
consultation with the federally recognized Indian tribes in this state and the
department in adherence to the department’s tribal consultation policy. A
district or intermediate district shall begin completion of the reporting
requirement under this subsection by not later than the 2024-2025 fiscal year.

Sec.
20. (1) For 2025-2026, the target foundation allowance is $10,050.00.

(2) The department shall calculate the amount of each
district’s foundation allowance as provided in this section, using a target
foundation allowance in the amount specified in subsection (1).

(3) Except as otherwise provided in this section, the
department shall calculate the amount of a district’s foundation allowance as
follows, using in all calculations the total amount of the district’s
foundation allowance as calculated before any proration:

(a) For a district that had a foundation allowance for the
immediately preceding fiscal year that was equal to the target foundation
allowance for the immediately preceding fiscal year, the district receives a
foundation allowance in an amount equal to the target foundation allowance
described in subsection (1) for the current fiscal year.

(b) For a district that had a foundation allowance for the
immediately preceding fiscal year that was greater than the target foundation
allowance for the immediately preceding fiscal year, the district’s foundation
allowance is an amount equal to the lesser of (the sum of the district’s
foundation allowance for the immediately preceding fiscal year plus any per
pupil amount calculated under section 20m(2) in the immediately preceding
fiscal year plus the increase in the target foundation allowance for the current
fiscal year, as compared to the immediately preceding fiscal year) or (the
product of the district’s foundation allowance for the immediately preceding
fiscal year times the percentage increase in the United States Consumer Price
Index in the calendar year ending in the immediately preceding fiscal year as
reported by the May revenue estimating conference conducted under section 367b
of the management and budget act, 1984 PA 431, MCL 18.1367b).

(c) For a district that had a foundation allowance in the
immediately preceding fiscal year that was less than the target foundation
allowance in effect for that fiscal year, the district’s foundation allowance
is an amount equal to the lesser of (the sum of district’s foundation allowance
for the immediately preceding fiscal year plus any per pupil amount calculated
under section 20m(2) in the immediately preceding fiscal year plus the increase
in the target foundation allowance for the current fiscal year, as compared to
the immediately preceding fiscal year) or (the product of the district’s
foundation allowance for the immediately preceding fiscal year times the
percentage increase in the United States Consumer Price Index in the calendar
year ending in the immediately preceding fiscal year as reported by the May
revenue estimating conference conducted under section 367b of the management
and budget act, 1984 PA 431, MCL 18.1367b).

(d) For a district that has a foundation allowance that is
not a whole dollar amount, the department shall round the district’s foundation
allowance up to the nearest whole dollar.

(4) Except as otherwise provided in this subsection, the
state portion of a district’s foundation allowance is an amount equal to the
district’s foundation allowance or the target foundation allowance for the
current fiscal year, whichever is less, minus the local portion of the district’s
foundation allowance. Except as otherwise provided in this subsection, for a
district described in subsection (3)(b) and (c), the state portion of the
district’s foundation allowance is an amount equal to the target foundation
allowance minus the district’s foundation allowance supplemental payment per
pupil calculated under section 20m and minus the local portion of the district’s
foundation allowance. For a district that has a millage reduction required
under section 31 of article IX of the state constitution of 1963, the
department shall calculate the state portion of the district’s foundation
allowance as if that reduction did not occur. For a receiving district, if
school operating taxes continue to be levied on behalf of a dissolved district
that has been attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the revised
school code, MCL 380.12, the taxable value per membership pupil of property in
the receiving district used for the purposes of this subsection does not
include the taxable value of property within the geographic area of the
dissolved district. For a community district, if school operating taxes
continue to be levied by a qualifying school district under section 12b of the
revised school code, MCL 380.12b, with the same geographic area as the
community district, the taxable value per membership pupil of property in the
community district to be used for the purposes of this subsection does not
include the taxable value of property within the geographic area of the
community district.

(5) The allocation calculated under this section for a pupil
is based on the foundation allowance of the pupil’s district of residence. For
a pupil enrolled under section 105 or 105c in a district other than the pupil’s
district of residence, the allocation calculated under this section is based on
the lesser of the foundation allowance of the pupil’s district of residence or
the foundation allowance of the educating district. For a pupil in membership
in a K-5, K-6, or K-8 district who is enrolled in another district in a grade
not offered by the pupil’s district of residence, the allocation calculated
under this section is based on the foundation allowance of the educating
district if the educating district’s foundation allowance is greater than the
foundation allowance of the pupil’s district of residence. The calculation
under this subsection must take into account a district’s per-pupil allocation
under section 20m.

(6) Except as otherwise provided in this subsection, for
pupils in membership, other than special education pupils, in a public school
academy, the allocation calculated under this section is an amount per
membership pupil other than special education pupils in the public school
academy equal to the target foundation allowance specified in subsection (1),
or, for a public school academy that was issued a contract under section 552 of
the revised school code, MCL 380.552, to operate as a school of excellence that
is a cyber school, $10,050.00. Notwithstanding section 101, for a public
school academy that begins operations after the pupil membership count day, the
amount per membership pupil calculated under this subsection must be adjusted
by multiplying that amount per membership pupil by the number of hours of pupil
instruction provided by the public school academy after it begins operations,
as determined by the department, divided by the minimum number of hours of
pupil instruction required under section 101(3). The result of this calculation
must not exceed the amount per membership pupil otherwise calculated under this
subsection.

(7) For pupils in membership, other than special education
pupils, in a community district, the allocation calculated under this section
is an amount per membership pupil other than special education pupils in the
community district equal to the foundation allowance of the qualifying school
district, as described in section 12b of the revised school code, MCL 380.12b,
that is located within the same geographic area as the community district.

(8) Subject to subsection (4), for a district that is formed
or reconfigured after June 1, 2002 by consolidation of 2 or more districts or
by annexation, the resulting district’s foundation allowance under this section
beginning after the effective date of the consolidation or annexation is the
lesser of the sum of the average of the foundation allowances of each of the
original or affected districts, calculated as provided in this section,
weighted as to the percentage of pupils in total membership in the resulting
district who reside in the geographic area of each of the original or affected
districts plus $100.00 or the highest foundation allowance among the original
or affected districts. This subsection does not apply to a receiving district
unless there is a subsequent consolidation or annexation that affects the
district. The calculation under this subsection must take into account a
district’s per-pupil allocation under section 20m.

(9) The department shall round each fraction used in making
calculations under this section to the fourth decimal place and shall
round the dollar amount of an increase in the target foundation allowance to
the nearest whole dollar.

(10) State payments related to payment of the foundation
allowance for a special education pupil are not calculated under this section
but are instead calculated under section 51e.

(11) To assist the legislature in determining the target
foundation allowance for the subsequent fiscal year, each revenue estimating
conference conducted under section 367b of the management and budget act, 1984 PA 431,
MCL 18.1367b, must calculate a pupil membership factor, a revenue adjustment
factor, and an index as follows:

(a) The pupil membership factor is computed by dividing the
estimated membership in the school year ending in the current fiscal year,
excluding intermediate district membership, by the estimated membership for the
school year ending in the subsequent fiscal year, excluding intermediate
district membership. If a consensus membership factor is not determined at the
revenue estimating conference, the principals of the revenue estimating
conference shall report their estimates to the house and senate subcommittees
responsible for school aid appropriations not later than 7 days after the
conclusion of the revenue conference.

(b) The revenue adjustment factor is computed by dividing the
sum of the estimated total state school aid fund revenue for the subsequent
fiscal year plus the estimated total state school aid fund revenue for the
current fiscal year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund and excluding money transferred
into that fund from the countercyclical budget and economic stabilization fund
under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, by
the sum of the estimated total school aid fund revenue for the current fiscal
year plus the estimated total state school aid fund revenue for the immediately
preceding fiscal year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund. If a consensus revenue factor is
not determined at the revenue estimating conference, the principals of the
revenue estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not later than 7
days after the conclusion of the revenue conference.

(c) The index is calculated by multiplying the pupil
membership factor by the revenue adjustment factor. If a consensus index is not
determined at the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and senate
subcommittees responsible for state school aid appropriations not later than 7
days after the conclusion of the revenue conference.

(12) Payments to districts and public school academies are
not made under this section. Rather, the calculations under this section are
used to determine the amount of state payments under section 22b.

(13) If an amendment to section 2 of article VIII of the
state constitution of 1963 allowing state aid to some or all nonpublic schools
is approved by the voters of this state, each foundation allowance or per-pupil
payment calculation under this section may be reduced.

(14) As used in this section:

(a) “Certified mills” means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in 1993-94.

(b) “Current fiscal year” means the fiscal year for which a
particular calculation is made.

(c) “Dissolved district” means a district that loses its
organization, has its territory attached to 1 or more other districts, and is
dissolved as provided under section 12 of the revised school code, MCL 380.12.

(d) “Immediately preceding fiscal year” means the fiscal year
immediately preceding the current fiscal year.

(e) “Local portion of the district’s foundation allowance”
means an amount that is equal to the difference between (the sum of the product
of the taxable value per membership pupil of all property in the district that
is nonexempt property times the district’s certified mills and, for a district
with certified mills exceeding 12, the product of the taxable value per
membership pupil of property in the district that is commercial personal
property times the certified mills minus 12 mills) and (the quotient of the
product of the captured assessed valuation under tax increment financing acts
times the district’s certified mills divided by the district’s membership
excluding special education pupils).

(f) “Membership” means the definition of that term under
section 6 as in effect for the particular fiscal year for which a particular
calculation is made.

(g) “Nonexempt property” means property that is not a
principal residence, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal property, commercial
personal property, or property occupied by a public school academy.

(h) “Principal residence”, “qualified agricultural property”,
“qualified forest property”, “supportive housing property”, “industrial
personal property”, and “commercial personal property” mean those terms as
defined in section 1211 of the revised school code, MCL 380.1211.

(i) “Receiving district” means a district to which all or
part of the territory of a dissolved district is attached under section 12 of
the revised school code, MCL 380.12.

(j) “School operating purposes” means the purposes included
in the operation costs of the district as prescribed in sections 7 and 18 and
purposes authorized under section 1211 of the revised school code, MCL
380.1211.

(k) “School operating taxes” means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL 380.1211, and
retained for school operating purposes.

(l) “Tax increment financing acts” means
parts 2, 3, 4, and 6 of the recodified tax increment financing act, 2018 PA
57, MCL 125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670.

(m) “Taxable value per membership pupil” means taxable value,
as certified by the county treasurer and reported to the department, for the
calendar year ending in the current state fiscal year divided by the district’s
membership excluding special education pupils for the school year ending in the
current state fiscal year.

Sec.
20d. In making the final determination required under former section 20a of a
district’s combined state and local revenue per membership pupil in 1993-94 and
in making calculations under section 20 for 2025-2026, the department and the
department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue
per membership pupil in the 1994-95 fiscal year of $6,500.00 or more and served
as a fiscal agent for a state board designated area vocational education center
in the 1993-94 school year, total state school aid received by or paid on
behalf of the district under this act in 1993‑94 excludes payments made
under former section 146 and under section 147 on behalf of the district’s
employees who provided direct services to the area vocational education center.
Not later than June 30, 1996, the department shall make an adjustment under
this subdivision to the district’s combined state and local revenue per
membership pupil in the 1994-95 fiscal year and the department of treasury
shall make a final certification of the number of mills that may be levied by
the district under section 1211 of the revised school code, MCL 380.1211, as a
result of the adjustment under this subdivision.

(b) If a district had an adjustment made to its 1993-94 total
state school aid that excluded payments made under former section 146 and under
section 147 on behalf of the district’s employees who provided direct services
for intermediate district center programs operated by the district under former
section 51 and sections 51a to 56, if nonresident pupils attending the center
programs were included in the district’s membership for purposes of calculating
the combined state and local revenue per membership pupil for 1993-94, and if
there is a signed agreement by all constituent districts of the intermediate
district agreeing to an adjustment under this subdivision, the department shall
calculate the foundation allowances for 1995-96 and 1996-97 of all districts
that had pupils attending the intermediate district center program operated by
the district that had the adjustment as if their combined state and local
revenue per membership pupil for 1993-94 included resident pupils attending the
center program and excluded nonresident pupils attending the center program.

Sec.
21f. (1) A primary district shall enroll an eligible pupil in virtual courses
in accordance with the provisions of this section. A primary district shall not
offer a virtual course to an eligible pupil unless the virtual course is
published in the primary district’s catalog of board-approved courses or in the
statewide catalog of virtual courses maintained by the Michigan Virtual
University pursuant to section 98. The primary district shall also provide on
its publicly accessible website a link to the statewide catalog of virtual
courses maintained by the Michigan Virtual University. Unless the pupil is at
least age 18 or is an emancipated minor, a pupil must not be enrolled in a
course that meets virtually without the consent of the pupil’s parent or legal
guardian.

(2) Subject to subsection (3), a primary district shall
enroll an eligible pupil in up to 2 virtual courses as requested by the pupil
during an academic term, semester, or trimester.

(3) A pupil may be enrolled in more than 2 virtual courses in
a specific academic term, semester, or trimester if both of the following
conditions are met:

(a) The primary district has determined that it is in the
best interest of the pupil.

(b) The pupil agrees with the recommendation of the primary
district.

(4) If the number of applicants eligible for acceptance in a
virtual course does not exceed the capacity of the provider to provide the
virtual course, the provider shall accept for enrollment all of the applicants
eligible for acceptance. If the number of applicants exceeds the provider’s
capacity to provide the virtual course, the provider shall use a random draw
system, subject to the need to abide by state and federal antidiscrimination
laws and court orders. A primary district that is also a provider shall
determine whether or not it has the capacity to accept applications for
enrollment from nonresident applicants in virtual courses and may use that
limit as the reason for refusal to enroll a nonresident applicant.

(5) A primary district may not establish additional
requirements beyond those specified in this subsection that would prohibit a
pupil from taking a virtual course. A pupil’s primary district may deny the
pupil enrollment in a virtual course if any of the following apply, as
determined by the district:

(a) The pupil is enrolled in any of grades K to 5.

(b) The pupil has previously gained the credits that would be
provided from the completion of the virtual course.

(c) The virtual course is not capable of generating academic
credit.

(d) The virtual course is inconsistent with the remaining
graduation requirements or career interests of the pupil.

(e) The pupil has not completed the prerequisite coursework
for the requested virtual course or has not demonstrated proficiency in the
prerequisite course content.

(f) The pupil has failed a previous virtual course in the
same subject during the 2 most recent academic years.

(g) The virtual course is of insufficient quality or rigor. A
primary district that denies a pupil enrollment request for this reason shall
enroll the pupil in a virtual course in the same or a similar subject that the
primary district determines is of acceptable rigor and quality.

(h) The cost of the virtual course exceeds the amount
identified in subsection (10), unless the pupil or the pupil’s parent or legal
guardian agrees to pay the cost that exceeds this amount.

(i) The request for a virtual course enrollment did not occur
within the same timelines established by the primary district for enrollment
and schedule changes for regular courses.

(j) The request for a virtual course enrollment was not made
in the academic term, semester, trimester, or summer preceding the enrollment.
This subdivision does not apply to a request made by a pupil who is newly
enrolled in the primary district.

(6) If a pupil is denied enrollment in a virtual course by
the pupil’s primary district, the primary district shall provide written
notification to the pupil of the denial, the reason or reasons for the denial
under subsection (5), and a description of the appeal process. The pupil may
appeal the denial by submitting a letter to the superintendent of the
intermediate district in which the pupil’s primary district is located. The
letter of appeal must include the reason provided by the primary district for not
enrolling the pupil and the reason why the pupil is claiming that the
enrollment should be approved. The intermediate district superintendent or
designee shall respond to the appeal within 5 days after it is received. If the
intermediate district superintendent or designee determines that the denial of
enrollment does not meet 1 or more of the reasons specified in subsection (5),
the primary district shall enroll the pupil in the virtual course.

(7) To provide a virtual course to an eligible pupil under
this section, a provider must do all of the following:

(a) Ensure that the virtual course has been published in the
pupil’s primary district’s catalog of board-approved courses or published in
the statewide catalog of virtual courses maintained by the Michigan Virtual
University.

(b) Assign to each pupil a teacher of record and provide the
primary district with the personnel identification code assigned by the center
for the teacher of record. If the provider is a community college, the virtual
course must be taught by an instructor employed by or contracted through the
providing community college.

(c) Offer the virtual course on an open entry and exit
method, or aligned to a semester, trimester, or accelerated academic term
format.

(d) If the virtual course is offered to eligible pupils in
more than 1 district, the following additional requirements must also be met:

(i) Provide the Michigan Virtual University
with a course syllabus that meets the definition under subsection (14)(g)
in a form and manner prescribed by the Michigan Virtual University for
inclusion in a statewide catalog of virtual courses.

(ii) Not later than October 1 of each fiscal
year, provide the Michigan Virtual University with an aggregated count of
enrollments for each virtual course the provider delivered to pupils under this
section during the immediately preceding school year, and the number of
enrollments in which the pupil earned 60% or more of the total course points
for each virtual course.

(8) To provide a virtual course under this section, a
community college shall ensure that each virtual course it provides under this
section generates postsecondary credit.

(9) For any virtual course a pupil enrolls in under this
section, the pupil’s primary district must assign to the pupil a mentor and
shall supply the provider with the mentor’s contact information.

(10) For a pupil enrolled in 1 or more virtual courses, the
primary district shall use foundation allowance or per-pupil funds calculated
under section 20 to pay for the expenses associated with the virtual course or
courses. A primary district is not required to pay toward the cost of a virtual
course an amount that exceeds 6.67% of the target foundation allowance for the
current fiscal year as calculated under section 20.

(11) A virtual learning pupil has the same rights and access
to technology in the pupil’s primary district’s school facilities as all other
pupils enrolled in the pupil’s primary district. The department shall establish
standards for hardware, software, and internet access for pupils who are
enrolled in more than 2 virtual courses under this section in an academic term,
semester, or trimester taken at a location other than a school facility.

(12) If a pupil successfully completes a virtual course, as
determined by the pupil’s primary district, the pupil’s primary district shall
grant appropriate academic credit for completion of the course and shall count
that credit toward completion of graduation and subject area requirements. A
pupil’s school record and transcript must identify the virtual course title as
it appears in the virtual course syllabus.

(13) The enrollment of a pupil in 1 or more virtual courses
must not result in a pupil being counted as more than 1.0 full-time equivalent
pupils under this article. The minimum requirements to count the pupil in
membership are those established by the pupil accounting manual as it was in
effect for the 2015-2016 school year or as subsequently amended by the
department if the department notifies the legislature about the proposed
amendment at least 60 days before the amendment becomes effective.

(14) As used in this section:

(a) “Instructor” means an individual who is employed by or
contracted through a community college.

(b) “Mentor” means a professional employee of the primary
district who monitors the pupil’s progress, ensures the pupil has access to
needed technology, is available for assistance, and ensures access to the teacher
of record. A mentor may also serve as the teacher of record if the primary
district is the provider for the virtual course and the mentor meets the
requirements under subdivision (e).

(c) “Primary district” means the district that enrolls the
pupil and reports the pupil for pupil membership purposes.

(d) “Provider” means the district, intermediate district,
community college, or other third-party vendor that the primary district pays
to provide the virtual course or the Michigan Virtual University if it is
providing the virtual course.

(e) “Teacher of record” means a teacher who meets all of the
following:

(i) Is appropriately placed under a valid
Michigan teaching certificate or a teaching permit, authorization, or approval
issued by the department. As used in this subparagraph, “appropriately placed”
means holding a valid Michigan educator credential with the required grade
range and discipline or subject area for the assignment, as defined by the
superintendent of public instruction.

(ii) Is responsible for providing
instruction, determining instructional methods for each pupil, diagnosing
learning needs, assessing pupil learning, prescribing intervention strategies
and modifying lessons, reporting outcomes, and evaluating the effects of
instruction and support strategies.

(iii) Has a personnel identification code
provided by the center.

(iv) If the provider is a community college,
is an instructor employed by or contracted through the providing community
college.

(f) “Virtual course” means a course of study that is capable
of generating a credit or a grade and that is provided in an interactive
learning environment where any portion of the curriculum is delivered using the
internet and in which pupils may be separated from their instructor or teacher
of record by time or location, or both.

(g) “Virtual course syllabus” means a document that includes
all of the following:

(i) An alignment document detailing how the
course meets applicable state standards or, if the state does not have state
standards, nationally recognized standards.

(ii) The virtual course content outline.

(iii) The virtual course required assessments.

(iv) The virtual course prerequisites.

(v) Expectations for actual instructor or
teacher of record contact time with the virtual learning pupil and other
communications between a pupil and the instructor or teacher of record.

(vi) Academic support available to the
virtual learning pupil.

(vii) The virtual course learning outcomes and
objectives.

(viii) The name of the institution or
organization providing the virtual content.

(ix) The name of the institution or
organization providing the instructor or teacher of record.

(x) The course titles assigned by the
provider and the course titles and course codes from the National Center for
Education Statistics (NCES) school codes for the exchange of data (SCED).

(xi) The number of eligible pupils that will
be accepted by the provider in the virtual course. A primary district that is
also the provider may limit the enrollment to those pupils enrolled in the
primary district.

(xii) The results of the virtual course
quality review using the guidelines and model review process published by the
Michigan Virtual University.

(h) “Virtual learning pupil” means a pupil enrolled in 1 or
more virtual courses.

Sec.
21h. (1) From the state school aid pupil support reserve fund money
appropriated in section 11, there is allocated $6,137,400.00 for 2025-2026 for
assisting districts assigned by the superintendent to participate in a partnership
district agreement to improve student achievement and district financial
stability. It is the intent of the legislature that the appropriation in this
section will be funded with state school aid pupil support reserve fund money
through 2027-2028. The superintendent shall identify any conditions that may be
contributing to low academic performance within a district being considered for
assignment to a partnership district agreement. The purpose of the partnership district
agreement is to identify district needs, develop intervention plans, and
partner with public, private, and nonprofit organizations to coordinate
resources and improve student achievement. Assignment of a district to a partnership
district agreement is made by the
superintendent.

(2) A district described in subsection (1) is eligible for
funding under this section if the district includes at least 1 school that has
been identified as low performing under the approved federal accountability
system. A district described
in this subsection must do all of the following to be eligible for funding
under this section:

(a) Within 90 days of assignment to the partnership district
agreement described in this section, complete a comprehensive needs assessment
or evaluation in collaboration with an intermediate district, community
members, education organizations, and postsecondary institutions, as
applicable, that is approved by the superintendent. The comprehensive needs
assessment or evaluation must include at least all of the following:

(i) A review of the district’s
implementation and utilization of a multi-tiered system of supports to ensure
that it is used to appropriately inform instruction.

(ii) A review of the district and school
building leadership and educator capacity to substantially improve student
outcomes.

(iii) A review of classroom, instructional,
and operational practices and curriculum to ensure alignment with
research-based instructional practices and state curriculum standards.

(b) Develop a district continuous improvement plan that has
been approved by the superintendent and that addresses the needs identified in
the comprehensive needs assessment or evaluation completed under subdivision (a).
The district continuous improvement plan must include at least all of the
following:

(i) Specific actions that will be taken by
the district and each of its partners to improve student achievement.

(ii) Specific measurable benchmarks that will
be met within 18 months to improve student achievement and identification of
expected student achievement outcomes to be attained within 3 years after
assignment to the partnership.

(iii) Measurable benchmarks that put pupils on
track to meet or exceed grade level proficiency, increase high school
graduation rates, reduce class sizes in grades K to 3, and improve attendance
rates.

(c) Provide access to training for district leadership,
including, but not limited to, the superintendent or chief administrator and
school board or board of directors members, on areas of education fiscal and
policy matters. The department may require training for district leadership and
all board members under this subdivision at a rate and frequency needed to
support measurable academic outcomes for the district.

(3) Upon approval of the district continuous improvement plan
developed under subsection (2), the department shall assign a team of
individuals with expertise in comprehensive school and district reform to
partner with the district, the intermediate district, community organizations,
education organizations, and postsecondary institutions identified in the
academic and financial operating or intervention plan to review the district’s
use of existing financial resources to ensure that those resources are being
used as efficiently and effectively as possible to improve student academic
achievement and to ensure district financial stability. The superintendent of
public instruction may waive burdensome administrative rules for a partnership
district for the duration of the partnership district agreement.

(4) Funds allocated under this section, excluding funds
allocated under subsection (5), may be used to pay for district expenditures
approved by the superintendent to improve student achievement. Funds may be
used for professional development for teachers or district or school
leadership, increased instructional time, teacher mentors, literacy, numeracy,
reducing K-3 class sizes, reducing chronic absenteeism, or other expenditures
that directly impact student achievement and cannot be paid from existing district
financial resources. Notwithstanding section 17b, the department shall make
payments to districts under this section on a schedule determined by the
department.

(5) From the funds allocated under subsection (1), there is
allocated for 2025-2026 an amount not to exceed $137,400.00 for the purchase of
a data analytics tool to be used by districts described in subsection (1). The
superintendent of public instruction shall require districts described in
subsection (1) to purchase a data analytics tool funded under this subsection
as part of the agreements described in this section.

(6) The department shall annually report to the legislature
on the activities funded under this section and how those activities impacted
student achievement in districts that received funds under this section. To the
extent possible, participating districts receiving funding under this section
shall participate in the report.

(7) In addition to the allocation under subsection (1), from
the state school aid fund money appropriated in section 11, there is allocated
an amount not to exceed $36,000,000.00 to districts described in subsection (1)
for 2023-2024 only for supplemental funding to be used by districts for the
purposes of this section in equal installments of $12,000,000.00 in each of the
fiscal years 2023-2024, 2024-2025, and 2025-2026. The funds allocated under
this subsection for 2023-2024 are a work project appropriation, and any
unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to provide assistance to
districts eligible for funding under this section. The estimated completion
date of the work project described in this subsection is September 30, 2026.

Sec.
22a. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $3,927,000,000.00 for 2024-2025 and there
is allocated an amount not to exceed $3,785,000,000.00 for 2025-2026 for
payments to districts and qualifying public school academies to guarantee each
district and qualifying public school academy an amount equal to its 1994-95
total state and local per-pupil revenue for school operating purposes under
section 11 of article IX of the state constitution of 1963. Pursuant to section
11 of article IX of the state constitution of 1963, this guarantee does not
apply to a district in a year in which the district levies a millage rate for
school district operating purposes less than it levied in 1994. However,
subsection (2) applies to calculating the payments under this section. Funds
allocated under this section that are not expended in the fiscal year for which
they were allocated, as determined by the department, may be used to supplement
the allocations under sections 22b and 51c to fully fund those allocations for
the same fiscal year.

(2) To ensure that a district receives an amount equal to the
district’s 1994-95 total state and local per-pupil revenue for school operating
purposes, there is allocated to each district a state portion of the district’s
1994-95 foundation allowance in an amount calculated as follows:

(a) Except as otherwise provided in this subsection, the
state portion of a district’s 1994-95 foundation allowance is an amount equal
to the district’s 1994-95 foundation allowance or $6,500.00, whichever is less,
minus the difference between the sum of the product of the taxable value per
membership pupil of all property in the district that is nonexempt property
times the district’s certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil of property
in the district that is commercial personal property times the certified mills
minus 12 mills and the quotient of the ad valorem property tax revenue of the
district captured under tax increment financing acts divided by the district’s membership.
For a district that has a millage reduction required under section 31 of
article IX of the state constitution of 1963, the department shall calculate
the state portion of the district’s foundation allowance as if that reduction
did not occur. For a receiving district, if school operating taxes are to be
levied on behalf of a dissolved district that has been attached in whole or in
part to the receiving district to satisfy debt obligations of the dissolved
district under section 12 of the revised school code, MCL 380.12, taxable value
per membership pupil of all property in the receiving district that is
nonexempt property and taxable value per membership pupil of property in the
receiving district that is commercial personal property do not include property
within the geographic area of the dissolved district; ad valorem property tax
revenue of the receiving district captured under tax increment financing acts
does not include ad valorem property tax revenue captured within the geographic
boundaries of the dissolved district under tax increment financing acts; and
certified mills do not include the certified mills of the dissolved district.
For a community district, the department shall reduce the allocation as
otherwise calculated under this section by an amount equal to the amount of
local school operating tax revenue that would otherwise be due to the community
district if not for the operation of section 386 of the revised school code,
MCL 380.386, and the amount of this reduction is offset by the increase in
funding under section 22b(2).

(b) For a district that had a 1994-95 foundation allowance
greater than $6,500.00, the state payment under this subsection is the sum of
the amount calculated under subdivision (a) plus the amount calculated under
this subdivision. The amount calculated under this subdivision must be equal to
the difference between the district’s 1994-95 foundation allowance minus
$6,500.00 and the current year hold harmless school operating taxes per pupil.
If the result of the calculation under subdivision (a) is negative, the
negative amount is an offset against any state payment calculated under this
subdivision. If the result of a calculation under this subdivision is negative,
there is not a state payment or a deduction under this subdivision. The taxable
values per membership pupil used in the calculations under this subdivision are
as adjusted by ad valorem property tax revenue captured under tax increment
financing acts divided by the district’s membership. For a receiving district,
if school operating taxes are to be levied on behalf of a dissolved district
that has been attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the revised
school code, MCL 380.12, ad valorem property tax revenue captured under tax
increment financing acts do not include ad valorem property tax revenue
captured within the geographic boundaries of the dissolved district under tax
increment financing acts.

(3) For pupils in membership in a qualifying public school
academy, there is allocated under this section to the authorizing body that is
the fiscal agent for the qualifying public school academy for forwarding to the
qualifying public school academy an amount equal to the 1994-95 per-pupil
payment to the qualifying public school academy under section 20.

(4) A district or qualifying public school academy may use
funds allocated under this section in conjunction with any federal funds for
which the district or qualifying public school academy otherwise would be
eligible.

(5) Except as otherwise provided in this subsection, for a
district that is formed or reconfigured after June 1, 2000 by
consolidation of 2 or more districts or by annexation, the resulting district’s
1994-95 foundation allowance under this section beginning after the effective
date of the consolidation or annexation is the average of the 1994-95
foundation allowances of each of the original or affected districts, calculated
as provided in this section, weighted as to the percentage of pupils in total
membership in the resulting district in the fiscal year in which the
consolidation takes place who reside in the geographic area of each of the
original districts. If an affected district’s 1994-95 foundation allowance is
less than the 1994-95 basic foundation allowance, the amount of that district’s
1994-95 foundation allowance is considered for the purpose of calculations
under this subsection to be equal to the amount of the 1994-95 basic foundation
allowance. This subsection does not apply to a receiving district unless there
is a subsequent consolidation or annexation that affects the district.

(6) Payments under this section are subject to section 25g.

(7) As used in this section:

(a) “1994-95 foundation allowance” means a district’s 1994-95
foundation allowance calculated and certified by the department of treasury or
the superintendent under former section 20a as enacted in 1993 PA 336 and as
amended by 1994 PA 283.

(b) “Certified mills” means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in 1993-94.

(c) “Current fiscal year” means the fiscal year for which a
particular calculation is made.

(d) “Current year hold harmless school operating taxes per
pupil” means the per-pupil revenue generated by multiplying a district’s
1994-95 hold harmless millage by the district’s current year taxable value per
membership pupil. For a receiving district, if school operating taxes are to be
levied on behalf of a dissolved district that has been attached in whole or in
part to the receiving district to satisfy debt obligations of the dissolved
district under section 12 of the revised school code, MCL 380.12, taxable value
per membership pupil does not include the taxable value of property within the
geographic area of the dissolved district.

(e) “Dissolved district” means a district that loses its
organization, has its territory attached to 1 or more other districts, and is
dissolved as provided under section 12 of the revised school code, MCL 380.12.

(f) “Hold harmless millage” means, for a district with a
1994-95 foundation allowance greater than $6,500.00, the number of mills by
which the exemption from the levy of school operating taxes on a principal
residence, qualified agricultural property, qualified forest property, supportive
housing property, industrial personal property, commercial personal property,
and property occupied by a public school academy could be reduced as provided
in section 1211 of the revised school code, MCL 380.1211, and the number of
mills of school operating taxes that could be levied on all property as
provided in section 1211(2) of the revised school code, MCL 380.1211, as
certified by the department of treasury for the 1994 tax year. For a receiving
district, if school operating taxes are to be levied on behalf of a dissolved
district that has been attached in whole or in part to the receiving district
to satisfy debt obligations of the dissolved district under section 12 of the
revised school code, MCL 380.12, school operating taxes do not include school
operating taxes levied within the geographic area of the dissolved district.

(g) “Membership” means the definition of that term under
section 6 as in effect for the particular fiscal year for which a particular
calculation is made.

(h) “Nonexempt property” means property that is not a
principal residence, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal property, commercial
personal property, or property occupied by a public school academy.

(i) “Principal residence”, “qualified agricultural property”,
“qualified forest property”, “supportive housing property”, “industrial
personal property”, and “commercial personal property” mean those terms as
defined in section 1211 of the revised school code, MCL 380.1211.

(j) “Qualifying public school academy” means a public school
academy that was in operation in the 1994-95 school year and is in operation in
the current fiscal year.

(k) “Receiving district” means a district to which all or
part of the territory of a dissolved district is attached under section 12 of
the revised school code, MCL 380.12.

(l) “School operating taxes” means local ad
valorem property taxes levied under section 1211 of the revised school code,
MCL 380.1211, and retained for school operating purposes as defined in section
20.

(m) “Tax increment financing acts” means parts 2, 3, 4, and 6
of the recodified tax increment financing act, 2018 PA 57, MCL 125.4201 to
125.4420 and 125.4602 to 125.4629, or the brownfield redevelopment financing
act, 1996 PA 381, MCL 125.2651 to 125.2670.

(n) “Taxable value per membership pupil” means each of the
following divided by the district’s membership:

(i) For the number of mills by which the
exemption from the levy of school operating taxes on a principal residence,
qualified agricultural property, qualified forest property, supportive housing
property, industrial personal property, commercial personal property, and
property occupied by a public school academy may be reduced as provided in
section 1211 of the revised school code, MCL 380.1211, the taxable value of
principal residence, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal property, commercial
personal property, and property occupied by a public school academy for the
calendar year ending in the current fiscal year. For a receiving district, if
school operating taxes are to be levied on behalf of a dissolved district that
has been attached in whole or in part to the receiving district to satisfy debt
obligations of the dissolved district under section 12 of the revised school
code, MCL 380.12, mills do not include mills within the geographic area of the
dissolved district.

(ii) For the number of mills of school
operating taxes that may be levied on all property as provided in section 1211(2)
of the revised school code, MCL 380.1211, the taxable value of all property for
the calendar year ending in the current fiscal year. For a receiving district,
if school operating taxes are to be levied on behalf of a dissolved district
that has been attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the revised school
code, MCL 380.12, school operating taxes do not include school operating taxes
levied within the geographic area of the dissolved district.

Sec.
22b. (1) Except as otherwise provided in this section, for discretionary
nonmandated payments to districts under this section, there is allocated for
2024-2025 an amount not to exceed $6,220,000,000.00 from the state school aid
fund and general fund appropriations in section 11 and an amount not to exceed
$41,000,000.00 from the community district education trust fund appropriation
in section 11, and there is allocated for 2025-2026 an amount not to exceed
$6,696,500,000.00 from the state school aid fund and general fund
appropriations in section 11. In addition, there is allocated for
2025-2026 only an amount not to exceed $124,000,000.00 from the state school
aid fund appropriation in section 11. For 2024-2025, the amount necessary,
estimated at $77,700,000.00, must be deposited from the general fund into the
state school aid fund to reimburse the state school aid fund for community
district education trust fund costs in excess of $41,000,000.00, as required
under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262. For
2024-2025 only, if the amount allocated under this subsection from the
community district education trust fund appropriation under section 11 is
insufficient to pay for an increase under this section, any amount exceeding
that allocation may be paid from other allocations under this subsection.
Except for money allocated under this section from the community district
education trust fund appropriation in section 11, funds allocated under this
section that are not expended in the fiscal year for which they were allocated,
as determined by the department, may be used to supplement the allocations
under sections 22a and 51c to fully fund those allocations for the same fiscal
year.

(2) Subject to subsection (3) and section 296, the allocation
to a district under this section is an amount equal to the sum of the amounts
calculated under sections 20, 20m, 51a(2), 51a(3), 51a(11), and 51e, minus the
sum of the allocations to the district under sections 22a and 51c. For a
community district, the allocation as otherwise calculated under this section
is increased by an amount equal to the amount of local school operating tax
revenue that would otherwise be due to the community district if not for the
operation of section 386 of the revised school code, MCL 380.386, to offset the
absence of local school operating revenue in a community district in the
funding of the state portion of the foundation allowance under section 20(4),
and, for 2024-2025 only, this increase must be paid from the community district
education trust fund allocation in subsection (1).

(3) To receive an allocation under subsection (1), each
district must do all of the following:

(a) Comply with section 1280b of the revised school code, MCL
380.1280b.

(b) Comply with sections 1278a and 1278b of the revised
school code, MCL 380.1278a and 380.1278b.

(c) Furnish data and other information required by state and
federal law to the center and the department in the form and manner specified
by the center or the department, as applicable.

(d) Comply with section 1230g of the revised school code, MCL
380.1230g.

(e) Comply with section 21f.

(f) For a district that has entered into a partnership
district agreement with the department, comply with section 22p.

(4) Districts are encouraged to use funds allocated under this
section for the purchase and support of payroll, human resources, and other
business function software that is compatible with that of the intermediate
district in which the district is located and with other districts located
within that intermediate district.

(5) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this state
related to commercial or industrial property tax appeals, including, but not
limited to, appeals of classification, that impact revenues dedicated to the
state school aid fund.

(6) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this state
associated with lawsuits filed by 1 or more districts or intermediate districts
against this state. If the allocation under this section is insufficient to
fully fund all payments required under this section, the payments under this
subsection must be made in full before any proration of remaining payments
under this section.

(7) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded under sections
22a, 31d, 51a, 51c, 51e, and 152a. If a claim is made by an entity receiving
funds under this article that challenges the legislative determination of the
adequacy of this funding or alleges that there exists an unfunded
constitutional requirement, the state budget director may escrow or allocate
from the discretionary funds for nonmandated payments under this section the
amount as may be necessary to satisfy the claim before making any payments to
districts under subsection (2). If funds are escrowed, the escrowed funds are a
work project appropriation and the funds are carried forward into the following
fiscal year. The purpose of the work project is to provide for any payments
that may be awarded to districts as a result of litigation. The work project is
completed upon resolution of the litigation.

(8) If the local claims review board or a court of competent
jurisdiction makes a final determination that this state is in violation of
section 29 of article IX of the state constitution of 1963 regarding state
payments to districts, the state budget director shall use work project funds
under subsection (7) or allocate from the discretionary funds for nonmandated
payments under this section the amount as may be necessary to satisfy the
amount owed to districts before making any payments to districts under
subsection (2).

(9) If a claim is made in court that challenges the
legislative determination of the adequacy of funding for this state’s
constitutional obligations or alleges that there exists an unfunded
constitutional requirement, any interested party may seek an expedited review
of the claim by the local claims review board. If the claim exceeds
$10,000,000.00, this state may remove the action to the court of appeals, and
the court of appeals has and shall exercise jurisdiction over the claim.

(10) If payments resulting from a final determination by the
local claims review board or a court of competent jurisdiction that there has
been a violation of section 29 of article IX of the state constitution of 1963
exceed the amount allocated for discretionary nonmandated payments under this
section, the legislature shall provide for adequate funding for this state’s
constitutional obligations at its next legislative session.

(11) If a lawsuit challenging payments made to districts
related to costs reimbursed by federal title XIX Medicaid funds is filed
against this state, then, for the purpose of addressing potential liability
under such a lawsuit, the state budget director may place funds allocated under
this section in escrow or allocate money from the funds otherwise allocated
under this section, up to a maximum of 50% of the amount allocated in
subsection (1). If funds are placed in escrow under this subsection, those funds
are a work project appropriation and the funds are carried forward into the
following fiscal year. The purpose of the work project is to provide for any
payments that may be awarded to districts as a result of the litigation. The
work project is completed upon resolution of the litigation. In addition, this
state reserves the right to terminate future federal title XIX Medicaid
reimbursement payments to districts if the amount or allocation of reimbursed
funds is challenged in the lawsuit. As used in this subsection, “title XIX”
means title XIX of the social security act, 42 USC 1396 to 1396w-6.

(12) As used in this section:

(a) “Dissolved district” means that term as defined in
section 20.

(b) “Local school operating revenue” means school operating
taxes levied under section 1211 of the revised school code, MCL 380.1211. For a
receiving district, if school operating taxes are to be levied on behalf of a
dissolved district that has been attached in whole or in part to the receiving
district to satisfy debt obligations of the dissolved district under section 12
of the revised school code, MCL 380.12, local school operating revenue does not
include school operating taxes levied within the geographic area of the
dissolved district.

(c) “Receiving district” and “school operating taxes” mean
those terms as defined in section 20.

Sec.
22d. (1) From the state school aid fund money appropriated under section 11, an
amount not to exceed $12,873,100.00 is allocated for 2025-2026 for supplemental
payments to rural districts under this section.

(2) From the allocation under subsection (1), there is
allocated for 2025-2026 an amount not to exceed $3,906,200.00 for payments
under this subsection to eligible districts. A district that meets all of the
following is an eligible district under this subsection:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

(c) Each school building operated by the district meets at
least 1 of the following:

(i) Is located in the Upper Peninsula at
least 30 miles from any other public school building.

(ii) Is located on an island that is not
accessible by bridge.

(3) The amount of the additional funding to each eligible
district under subsection (2) is determined under a spending plan developed as
provided in this subsection and approved by the superintendent of public
instruction. The spending plan must be developed cooperatively by the intermediate
superintendents of each intermediate district in which an eligible district is
located. The intermediate superintendents shall review the financial situation
of each eligible district, determine the minimum essential financial needs of
each eligible district, and develop and agree on a spending plan that
distributes the available funding under subsection (2) to the eligible
districts based on those financial needs. The intermediate superintendents
shall submit the spending plan to the superintendent of public instruction for
approval. Upon approval by the superintendent of public instruction, the
amounts specified for each eligible district under the spending plan are
allocated under subsection (2) and must be paid to the eligible districts in
the same manner as payments under section 22b.

(4) Subject to subsection (7), from the allocation in
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$8,412,100.00 for payments under this subsection to districts that have fewer
than 10.0 pupils per square mile, as determined by the department, or that have
greater than 250 square miles.

(5) The funds allocated under subsection (4) are allocated as
follows:

(a) An amount equal to $6,373,700.00 is allocated to
districts with fewer than 8.0 pupils per square mile, as determined by the
department, on an equal per-pupil basis.

(b) The balance of the funding under subsection (4) is
allocated as follows:

(i) For districts with at least 8.0 but
fewer than 9.0 pupils per square mile, as determined by the department, the
allocation is an amount per pupil equal to 75% of the per-pupil amount
allocated to districts under subdivision (a).

(ii) For districts with at least 9.0 but
fewer than 10.0 pupils per square mile, as determined by the department, the
allocation is an amount per pupil equal to 50% of the per-pupil amount
allocated to districts under subdivision (a).

(iii) For districts that have greater than 250
square miles, have at least 10.0 pupils per square mile, and do not receive
funding under subsection (2), as determined by the department, the allocation
is an amount per pupil equal to 100% of the per-pupil amount allocated to
districts under subdivision (a).

(c) If the total funding allocated under subdivision (b) is
insufficient to fully fund payments as calculated under that subdivision, the
department shall prorate payments to districts under subdivision (b) on an
equal per-pupil basis. If funding allocated under subdivision (b) remains
unallocated after making calculations under that subdivision, the department
may provide the remaining unallocated funding on an equal per-pupil basis to
districts receiving funding under subdivision (b)(i) and (ii).

(6) Subject to subsection (7), from the allocation under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$554,800.00 for payments under this subsection to districts where each school
building operated by the district is located on an island that is accessible by
bridge.

(7) A district receiving funds allocated under subsection (2)
is not eligible for funding allocated under subsection (4) or (6). A district
receiving funds allocated under subsection (6) is not eligible for funding
under subsection (2) or (4).

Sec.
22k. (1) The school transportation fund is created as a separate account within
the state school aid fund for the purpose of supporting district transportation
costs.

(2) The state treasurer may receive money or other assets
from any source for deposit into the school transportation fund. The state
treasurer shall direct the investment of the school transportation fund. The
state treasurer shall credit to the school transportation fund interest and
earnings from school transportation fund investments.

(3) Money in the school transportation fund at the close of
the fiscal year remains in the school transportation fund and does not lapse to
the state school aid fund or the general fund.

(4) The department of treasury is the administrator of the
school transportation fund for auditing purposes.

(5) Money available in the school transportation fund must
not be expended without a specific appropriation.

(6) For the fiscal year ending September 30, 2026 only,
$130,000,000.00 from the state school aid fund must be deposited into the
school transportation fund.

Sec.
22l. (1) From the school transportation fund
money appropriated under section 11, there is allocated for 2025-2026 only an
amount not to exceed $125,000,000.00 to districts and intermediate districts
for transportation costs. Funding for each district or intermediate district is
as follows:

(a) The department must assign each district and intermediate
district to an octile based on the number of riders per square mile and
calculate the median cost per rider for each octile.

(b) Funds must be distributed to each district and
intermediate district as follows:

(i) An initial amount at the lesser of the
octile’s median cost per rider or the actual transportation cost per general
education rider at the district or intermediate district.

(ii) An additional amount for districts and
intermediate districts that have outlier costs per rider that are deemed
reasonable, as determined by the department.

(c) If funds are insufficient to fully fund payments under
this section, payments may be prorated on an equal percentage basis.

(2) In addition to the funds allocated under subsection (1),
from the school transportation fund money appropriated under section 11, there
is allocated for 2022-2023 only an amount not to exceed $200,000.00 to an
intermediate district for a study on district transportation costs. The
intermediate district receiving funds under this subsection must submit a
report to the department, the state budget director, the house and senate
appropriations subcommittees on school aid, and the house and senate fiscal agencies
by February 29, 2024 on the outcomes of the study under this subsection.
Notwithstanding section 18a, funds allocated under this subsection may be
available for expenditure until September 30, 2026. A recipient of funding
under this subsection must return any unexpended funds to the department in a
manner prescribed by the department by not later than October 30, 2026.

(3) To remain eligible for funding under subsection (1), by
not later than December 1 of the current fiscal year, a school district must
submit, in a form and manner determined by the department, to their
intermediate district, and a public school academy must submit, in a form and
manner determined by the department, to the intermediate district in which the
public school academy is located, the number of nonpublic school students the
district expects to transport as required under section 1321 of the revised
school code, MCL 380.1321. Intermediate districts shall submit this information
to the department by not later than February 1.

(4) The department shall compile the reports provided by
intermediate districts under subsection (3) into 1 legislative report. The
department shall provide this report not later than March 1 of each fiscal year
for which funding is allocated under this section to the house and senate
subcommittees responsible for school aid, the house and senate fiscal agencies,
and the state budget director.

(5) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
22m. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 an amount not to exceed $3,500,000.00 for supporting
the integration of local data systems into the Michigan data hub network based
on common standards and applications that are in compliance with section 19(6).
In addition, from the state school aid fund money appropriated in section 11,
there is allocated for 2025-2026 only an amount not to exceed $1,500,000.00 for
the purposes of this section.

(2) An entity that is the fiscal agent for no more than 5
consortia of intermediate districts that previously received funding from the
technology readiness infrastructure grant under former section 22i for the
purpose of establishing regional data hubs that are part of the Michigan data
hub network is eligible for funding under this section.

(3) The center shall work with an advisory committee composed
of representatives from intermediate districts within each of the data hub
regions to coordinate the activities of the Michigan data hub network.

(4) The center, in collaboration with the Michigan data hub
network, shall determine the amount of funds distributed under this section to
each participating regional data hub within the network, based upon a
competitive grant process. The center shall ensure that the entities receiving
funding under this section represent geographically diverse areas in this
state.

(5) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the center.

(6) To receive funding under this section, a regional data
hub must have a governance model that ensures local control of data, data
security, and student privacy issues. The integration of data within each of
the regional data hubs must provide for the actionable use of data by districts
and intermediate districts through common reports and dashboards and for
efficiently providing information to meet state and federal reporting purposes.

(7) Participation in a data hub region in the Michigan data
hub network under this section is voluntary and is not required.

(8) Entities receiving funding under this section shall use
the funds for all of the following:

(a) Creating an infrastructure that effectively manages the
movement of data between data systems used by intermediate districts,
districts, and other educational organizations in Michigan based on common data
standards to improve student achievement.

(b) Utilizing the infrastructure to put in place commonly
needed integrations, reducing cost and effort to do that work while increasing
data accuracy and usability.

(c) Promoting the use of a more common set of applications by
promoting systems that integrate with the Michigan data hub network.

(d) Promoting 100% district adoption of the Michigan data hub
network.

(e) Ensuring local control of data, data security, and
student data privacy.

(f) Utilizing the infrastructure to promote the actionable
use of data through common reports and dashboards that are consistent
statewide.

(g) Creating a governance model to facilitate sustainable
operations of the infrastructure in the future, including administration, legal
agreements, documentation, staffing, hosting, and funding.

(h) Evaluating future data initiatives at all levels to
determine whether the initiatives can be enhanced by using the standardized
environment in the Michigan data hub network.

(9) By not later than January 1 of each fiscal year, the
center shall prepare a summary report of information provided by each entity
that received funds under this section that includes measurable outcomes based
on the objectives described under this section and a summary of compiled data
from each entity to provide a means to evaluate the effectiveness of the
project. The center shall submit the report to the house and senate
appropriations subcommittees on school aid and to the house and senate fiscal
agencies.

Sec.
22p. (1) Subject to subsection (2), to receive funding under section 22b, a
district or public school academy that is assigned by the superintendent of
public instruction as a partnership district must have a signed 3-year
partnership district agreement with the department that includes all of the
following:

(a) Measurable benchmarks that the district or public school
academy will achieve for each school operated by the district or public school
academy that is subject to the partnership district agreement after 18 months
and after 36 months from the date the agreement was originally signed.
Measurable benchmarks under this subdivision must include all of the following:

(i) Pupils on track to meet or exceed grade
level proficiency, with consideration for district or public school academy
needs identified as required under section 21h.

(ii) Either of the following, as applicable:

(A) At least 1 proficiency or growth benchmark based on state
assessments described in section 104b or 104c.

(B) At least 1 proficiency or growth benchmark based on a
benchmark assessment described in section 104h.

(iii) Improved high school graduation rates,
as applicable.

(iv) Attendance rates.

(b) Accountability measures to be imposed if the district or
public school academy does not achieve the measurable benchmarks described in
subdivision (a) or section 21h(2)(b) for each school operated by the district
or public school academy that is subject to the partnership district agreement.
For a district assigned as a partnership district as described in this
subsection, accountability measures under this subdivision must include the
reconstitution of the school. For a public school academy assigned as a
partnership district as described in this subsection, accountability measures
under this subdivision may include the reconstitution of the school.

(c) For a public school academy assigned as a partnership
district as described in this subsection, a requirement that, if reconstitution
is imposed on a school that is operated by the public school academy and that
is subject to the partnership district agreement, the school must be
reconstituted as described in section 507, 528, or 561, as applicable, of the
revised school code, MCL 380.507, 380.528, and 380.561.

(d) For a district assigned as a partnership district as
described in this subsection, a provision that, if reconstitution is imposed on
a school that is operated by the district and that is subject to the
partnership district agreement, reconstitution may require closure of the
school building, but, if the school building remains open, reconstitution must
include, but is not limited to, all of the following:

(i) The district shall make significant
changes to the instructional and noninstructional programming of the school
based on the needs identified through a comprehensive review of data in
compliance with section 21h.

(ii) The district shall review whether the
current principal of the school should remain as principal or be replaced.

(iii) The reconstitution plan for the school
must require the adoption of goals similar to the measurable benchmarks
included in the partnership district agreement, with a limit of 3 years to
achieve the goals. If the goals are not achieved within 3 years, the
superintendent of public instruction shall impose a second reconstitution plan.

(2) If a district or public school academy is assigned as a
partnership district as described in subsection (1) during the current fiscal
year, it shall ensure that it has a signed partnership district agreement as
described in subsection (1) in place by not later than 90 days after the date
that it is assigned as a partnership district. If a district or public school
academy described in this subsection does not comply with this subsection, the
department shall withhold funding under section 22b for that district or public
school academy until the district or public school academy has a signed
partnership district agreement as described in subsection (1) in place.

Sec.
22r. (1) The
state school aid pupil support reserve fund is created as a separate account
within the state school aid fund to fund programs described in sections 21h,
32n, 65, 67f, and 99h. It is the intent
of the legislature that money in the state school aid pupil support reserve
fund will be used to support the above programs for 2025-2026, 2026-2027, and
2027-2028.

(2) The state treasurer may receive money or other assets
from any source for deposit into the state school aid pupil support reserve
fund. The state treasurer shall direct the investment of the state school aid
pupil support reserve fund. The state treasurer shall credit to the state
school aid pupil support reserve fund interest and earnings from state school
aid pupil support reserve fund investments.

(3) Money in the state school aid pupil support reserve fund
at the close of the fiscal year remains in the state school aid pupil support
reserve fund and does not lapse to the state school aid fund.

(4) The department of treasury is the administrator of the
state school aid pupil support reserve fund for auditing purposes.

(5) Money available in the state school aid pupil support
reserve fund must not be expended without a specific appropriation.

(6) For the fiscal year ending September 30, 2026 only,
$326,112,200.00 from the state school aid fund is deposited into the state
school aid pupil support reserve fund.

Sec.
22s. (1) The
general pupil support reserve fund is created as a separate account within the
state school aid fund to fund programs described in section 99h. It is the intent of the legislature that money in the
general pupil support reserve fund will be used to support the above program
for 2025-2026, 2026-2027, and 2027-2028.

(2) The state treasurer may receive money or other assets
from any source for deposit into the general pupil support reserve fund. The
state treasurer shall direct the investment of the general pupil support
reserve fund. The state treasurer shall credit to the general pupil support
reserve fund interest and earnings from general pupil support reserve fund
investments.

(3) Money in the general pupil support reserve fund at the
close of the fiscal year remains in the general pupil support reserve fund and
does not lapse to the state school aid fund.

(4) The department of treasury is the administrator of the
general pupil support reserve fund for auditing purposes.

(5) Money available in the general pupil support reserve fund
must not be expended without a specific appropriation.

(6) For the fiscal year ending September 30, 2026 only,
$1,800,000.00 from the general fund is deposited into the general pupil support
reserve fund.

Sec.
24. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 an amount not to exceed $7,650,000.00 for payments
to the educating district or intermediate district for educating pupils
assigned by a court or the department of health and human services to reside in
or to attend a juvenile detention facility or child caring institution licensed
by the department of health and human services and approved by the department
to provide an on-grounds education program. The amount of the payment under
this section to a district or intermediate district is calculated as prescribed
under subsection (2).

(2) The department shall allocate the total amount allocated
under this section by paying to the educating district or intermediate district
an amount equal to the lesser of the district’s or intermediate district’s
added cost or the department’s approved per-pupil allocation for the district
or intermediate district. For the purposes of this subsection:

(a) “Added cost” means 100% of the added cost each fiscal
year for educating all pupils assigned by a court or the department of health
and human services to reside in or to attend a juvenile detention facility or
child caring institution licensed by the department of health and human
services or the department of licensing and regulatory affairs and approved by
the department to provide an on-grounds education program. Added cost is
computed by deducting all other revenue received under this article for pupils
described in this section from total costs, as approved by the department, in
whole or in part, for educating those pupils in the on-grounds education
program or in a program approved by the department that is located on property
adjacent to a juvenile detention facility or child caring institution. Costs
reimbursed by federal funds are not included.

(b) “Department’s approved per-pupil allocation” for a
district or intermediate district is determined by dividing the total amount
allocated under this section for a fiscal year by the full-time equated
membership total for all pupils approved by the department to be funded under
this section for that fiscal year for the district or intermediate district.

(3) A district or intermediate district educating pupils
described in this section at a residential child caring institution may
operate, and receive funding under this section for, a department-approved
on-grounds educational program for those pupils that is longer than 181 days,
but not longer than 233 days, if the child caring institution was licensed as a
child caring institution and offered in 1991-92 an on-grounds educational
program that was longer than 181 days but not longer than 233 days and that was
operated by a district or intermediate district.

(4) Special education pupils funded under section 53a are not
funded under this section.

Sec.
24a. From the state school aid fund money appropriated in section 11, there is
allocated an amount not to exceed $1,355,700.00 for 2025-2026 for payments to intermediate
districts for pupils who are placed in juvenile justice service facilities
operated by the department of health and human services. The amount of the
payment to each intermediate district is an amount equal to the state share of
those costs that are clearly and directly attributable to the educational
programs for pupils placed in facilities described in this section that are
located within the intermediate district’s boundaries. The intermediate
districts receiving payments under this section shall cooperate with the
department of health and human services to ensure that all funding allocated
under this section is utilized by the intermediate district and department of
health and human services for educational programs for pupils described in this
section. Pupils described in this section are not eligible to be funded under
section 24. However, a program responsibility or other fiscal responsibility
associated with these pupils must not be transferred from the department of
health and human services to a district or intermediate district unless the
district or intermediate district consents to the transfer.

Sec.
25f. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $1,600,000.00 for 2025-2026 for payments
to strict discipline academies and qualified districts, as provided under this
section.

(2) To receive funding under this section, a strict
discipline academy or qualified district must first comply with section 25e and
use the pupil transfer process described in that section for changes in
enrollment as prescribed under that section and apply annually for funding
under section 24.

(3) The total amount allocated to a strict discipline academy
or qualified district under this section is equal to the strict discipline
academy’s or qualified district’s pupil membership in the immediately preceding
year multiplied by an amount calculated by dividing the total allocation under
this section by the total pupil membership for eligible strict discipline
academies and qualified districts in the immediately preceding year. However,
the sum of the amounts received by a strict discipline academy or qualified
district under this section and under section 24 must not exceed the product of
the strict discipline academy’s or qualified district’s per-pupil allocation
calculated under section 20 multiplied by the strict discipline academy’s or
qualified district’s full-time equated membership. The department shall
allocate funds to strict discipline academies and qualified districts under
this section on a monthly basis.

(4) Special education pupils funded under section 53a are not
funded under this section.

(5) The department shall make payments to strict discipline
academies and qualified districts under this section according to the payment
schedule under section 17b.

(6) For purposes of this section, the pupil membership for
the current fiscal year for a qualified district is the actual number of pupils
that are in the custody of a county juvenile agency as described in subsection
(7)(a).

(7) As used in this section:

(a) “Qualified district” means a public school academy that
is not a strict discipline academy that enrolls individuals who are in the
custody of a county juvenile agency to which both of the following are
applicable:

(i) The agency had custody of individuals
who were enrolled in a strict discipline academy in the 2020-2021 school year.

(ii) The strict discipline academy that the
individuals described in subparagraph (i) were
enrolled in subsequently closed.

(b) “Strict discipline academy” means a public school academy
established under sections 1311b to 1311m of the revised school code, MCL
380.1311b to 380.1311m.

Sec.
25g. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $1,250,000.00 for 2025-2026 for the
purposes of this section. Except as otherwise provided in this section, if the
operation of the special membership counting provisions under section 6(4)(dd)
and the other membership counting provisions under section 6(4) result in a
pupil being counted as more than 1.0 FTE in a fiscal year, the payment made for
the pupil under sections 22a and 22b must not be based on more than 1.0 FTE for
that pupil, and that portion of the FTE that exceeds 1.0 is paid under this
section in an amount equal to that portion multiplied by the educating district’s
foundation allowance or per-pupil payment calculated under section 20. It
is the intent of the legislature that, for 2026-2027, the allocation from the
state school aid fund money appropriated in section 11 for the purposes
described in this section will be $750,000.00.

(2) Special education pupils funded under section 53a are not
funded under this section.

(3) If the funds allocated under this section are
insufficient to fully fund the adjustments under subsection (1), the department
shall prorate payments under this section on an equal per-pupil basis.

(4) The department shall make payments to districts under
this section according to the payment schedule under section 17b.

Sec.
26a. From the state school aid fund money appropriated in section 11, there is
allocated an amount not to exceed $14,000,000.00 for 2025-2026 to reimburse
districts and intermediate districts under section 12 of the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2024. The
department shall pay the allocations by not later than 60 days after the
department of treasury certifies to the department and to the state budget
director that the department of treasury has received all necessary information
to properly determine the amounts due to each eligible recipient.

Sec.
26b. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $5,549,000.00 for 2025-2026 for payments
to districts, intermediate districts, and community college districts for the
portion of the payment in lieu of taxes obligation that is attributable to
districts, intermediate districts, and community college districts under
section 2154 of the natural resources and environmental protection act, 1994 PA
451, MCL 324.2154.

(2) If the amount appropriated under this section is
insufficient to fully pay obligations under this section, payments are prorated
on an equal basis among all eligible districts, intermediate districts, and
community college districts.

Sec.
26c. (1) From the state school aid fund money appropriated under section 11,
there is allocated an amount not to exceed $37,700,000.00 for 2024-2025 and
there is allocated an amount not to exceed $43,300,000.00 for 2025-2026 to the
promise zone fund created in subsection (3). The funds allocated under this
section reflect the amount of revenue from the collection of the state
education tax captured under section 17 of the Michigan promise zone authority
act, 2008 PA 549, MCL 390.1677.

(2) Funds allocated to the promise zone fund under this
section must be used solely for payments to eligible districts and intermediate
districts, in accordance with section 17 of the Michigan promise zone authority
act, 2008 PA 549, MCL 390.1677, that have a promise zone development plan
approved by the department of treasury under section 7 of the Michigan promise
zone authority act, 2008 PA 549, MCL 390.1667. Eligible districts and
intermediate districts shall use payments made under this section for reimbursement
for qualified educational expenses as that term is defined in section 3 of the
Michigan promise zone authority act, 2008 PA 549, MCL 390.1663.

(3) The promise zone fund is created as a separate account
within the state school aid fund to be used solely for the purposes of the
Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679. All
of the following apply to the promise zone fund:

(a) The state treasurer shall direct the investment of the
promise zone fund. The state treasurer shall credit to the promise zone fund
interest and earnings from fund investments.

(b) Money in the promise zone fund at the close of a fiscal
year remains in the promise zone fund and does not lapse to the general fund.

(4) Subject to subsection (2), the state treasurer may make
payments from the promise zone fund to eligible districts and intermediate
districts under the Michigan promise zone authority act, 2008 PA 549, MCL
390.1661 to 390.1679, to be used for the purposes of a promise zone authority
created under that act.

(5) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
26d. (1) From the state school aid fund money appropriated under section 11,
there is allocated an amount not to exceed $14,400,000.00 for 2025-2026 for
reimbursements to intermediate districts as required under section 15b of
the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2665b.

(2) The amounts reimbursed under subsection (1) must be used
by the intermediate district only for the purposes for which the property taxes
were originally levied.

(3) The Michigan strategic fund and the Michigan economic
development corporation shall work with the department of treasury in
identifying the amount of tax revenues that are to be reimbursed under
subsection (1).

(4) Notwithstanding section 17b, the department of treasury
shall make payments under this section on a schedule determined by the
department of treasury.

Sec.
27a. (1) From the educator fellowship public provider fund money appropriated
in section 11, there is allocated for 2025-2026 an amount not to exceed
$10,000,000.00, from the state school aid fund money appropriated in section
11, there is allocated for 2025-2026 an amount not to exceed $10,000,000.00,
and from the general fund money appropriated in section 11, there is allocated
for 2025-2026 an amount not to exceed $5,000,000.00 for the MI future educator
fellowship program. The funds allocated under this section must be used to
offset tuition costs for individuals who are working toward earning their
initial teacher certification. At the close of the fiscal year, money allocated
under this section that is unspent must be deposited as follows:

(a) For state school aid fund money, into the educator
fellowship public provider fund in section 27d.

(b) For general fund money, into the educator fellowship
private provider fund in section 27e.

(2) To establish initial eligibility for an award from
funding under this section, an individual must meet all of the following
conditions by the date of enrollment described in subdivision (b):

(a) Have graduated from high school with a diploma or
certificate of completion or achieved a high school equivalency certificate.

(b) Be admitted to an eligible educator preparation program;
be working toward a teacher certification; be enrolled in enough coursework to
be considered enrolled full-time during the academic year, as determined by the
student’s educator preparation program, or the equivalent of full-time
participation for individuals enrolled in an alternative certification program,
as defined by the department; and, for students at institutions of higher
education, be considered at least a junior-level student, as determined by the
institution of higher education.

(c) Not have previously earned a teacher certification.

(d) Timely complete a grant application in a form and manner
prescribed by the department of lifelong education, advancement, and potential.

(e) Timely file the Free Application for Federal Student Aid
for the enrollment period described in subdivision (b).

(f) Timely apply for all available gift aid for the
enrollment period described in subdivision (b).

(g) Agree to repay any funds received from funding under this
section if the individual does not maintain enrollment in their educator
preparation program, the individual does not successfully complete their
educator program, or the individual does not complete the work requirement
described in subsection (7).

(h) Have a high school or college grade point average of at
least 3.0.

(i) Be a resident of this state, as determined for purposes
of the Free Application for Federal Student Aid.

(3) To establish continuing eligibility for an award under
this section at an eligible educator preparation program, an individual must
meet all of the following conditions:

(a) Maintain full-time continuous enrollment in an eligible
educator preparation program, as determined by the educator preparation
program, or the equivalent of full-time participation for individuals enrolled
in an alternative certification program, as defined by the department,
excluding any period of time missed due to a medical or other emergency, as
determined by the department of lifelong education, advancement, and potential.

(b) Maintain satisfactory academic progress, including a
grade point average of at least 3.0, in courses provided by the eligible
educator preparation program and meet requirements established by the eligible
educator preparation program.

(c) Participate in relevant academic and career advising
programs offered by the eligible educator preparation program.

(d) Timely file the Free Application for Federal Student Aid
for each academic year in which the individual receives an award from funding
under this section.

(e) Timely apply for all available gift aid for each academic
year in which the individual applies for funding under this section.

(f) Maintain residency in this state, as determined for
purposes of the Free Application for Federal Student Aid.

(4) An award under this section must not exceed $10,000.00
per academic year or the cost of tuition at the eligible educator preparation
program attended, whichever is less. As used in this subsection, the cost of
tuition at an educator preparation program that is an institution of higher
education is the in-district resident rate plus other required fees, as
determined by the department of lifelong education, advancement, and potential;
and the cost of tuition at an educator preparation program that is an alternative
certification provider is the cost of tuition plus other required fees, as
determined by the department of lifelong education, advancement, and potential.

(5) Awards under this section must be distributed to eligible
educator preparation programs on behalf of an eligible recipient on a timeline
determined by the department of lifelong education, advancement, and potential.

(6) Pending available funds, applicants may renew their award
for up to 3 years, or until program completion, whichever comes first.

(7) To be an eligible recipient of fellowship funding under
this section, an individual must pledge to work as a certified teacher in a
public school or a qualifying public preschool program in this state and must
meet 1 of the following work requirements:

(a) For a recipient of funding under this section who
received an award for 1 academic year, 3 years of work as a certified teacher
in a public school or a qualifying public preschool program in this state.

(b) For a recipient of funding under this section who
received an award for 2 academic years, 4 years of work as a certified teacher
in a public school or a qualifying public preschool program in this state.

(c) For a recipient of funding under this section who
received an award for 3 academic years, 5 years of work as a certified teacher
in a public school or a qualifying public preschool program in this state.

(d) For a recipient working in a critical needs district, 3
years of work as a certified teacher. As used in this subdivision, “critical
needs district” means a district with a median household income in the lowest
quartile in each prosperity region, as determined by the department.

(8) If an award recipient does not maintain enrollment in
their educator preparation program as required under subsection (3)(a), does
not successfully complete their educator preparation program, or does not meet
the work requirement described in subsection (7), any amount received from
funds under this section converts to a 0% interest loan that must be repaid to
this state within 10 years, plus any deferment period as determined and
approved by the department of lifelong education, advancement, and potential.
The amount of repayment must be reduced proportionate to the number of years
worked in schools or qualifying public preschool programs in this state as a
certificated teacher out of 5 years. The department of lifelong education,
advancement, and potential shall develop guidance to enforce this subsection.

(9) An individual may not concurrently receive funding
through programs funded under this section and grow your own programs funded
under section 27b.

(10) If the amount allocated in subsection (1) is
insufficient to fully fund awards under this section, there is appropriated
from the educator fellowship public provider fund in section 27d or the
educator fellowship private provider fund in section 27e, as applicable, the
amount necessary to fully fund these programs. The state budget director shall
provide notification to the house and senate appropriations subcommittees on K
to 12 school aid and the house and senate fiscal agencies for any additional appropriation
described under this subsection.

(11) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this section on
a schedule determined by the department of lifelong education, advancement, and
potential.

(12) The department of lifelong education, advancement, and
potential shall report to the chairpersons of the house appropriations
subcommittee on school aid and education and the senate appropriations
subcommittee on pre-K to 12 by February 15 of the current fiscal year. The
report must include the following:

(a) The number and amount of awards granted in the previous
fiscal year.

(b) The number of recipients in the previous fiscal year that
had their awards converted to loans under subsection (8).

(13) As used in this section, “eligible educator preparation
program” means a public or nonpublic institution of higher education or an
alternative route provider that meets all of the following, as applicable:

(a) Is approved by the department to offer teacher
preparation programming.

(b) Enrolls 1 or more future educator fellowship recipients.

(c) Has not been deemed as ineligible to receive Michigan
achievement scholarship funding under section 248 as a result of exceeding
tuition restraint requirements described in section 248.

Sec.
27b. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 only an amount not to exceed $70,000,000.00 to
districts, intermediate districts, and consortia of intermediate districts for
grow your own programs and educator development programs as described in this
section and subject to subsection (5).

(2) The department shall establish a competitive grant
process to distribute funds under this section. A district, intermediate
district, or consortium of intermediate districts must apply for funds in a
form and manner prescribed by the department. As part of the application
described in this subsection, a district, intermediate district, or consortium
of intermediate districts must submit the following information and assurances:

(a) Demonstrated need for funding in the district,
intermediate district, or consortium of intermediate districts or the broader
community, including projected workforce needs, and a proposed spending plan on
how the funds will be utilized that includes, but is not limited to, expected
tuition, fees, and books for the program.

(b) Number of support staff projected to participate in a
program described in this section.

(c) The planned activities for programs described in this
section.

(d) Projected outcomes of programs described in this section,
which must include, but are not limited to, the following:

(i) Teacher and school leader retention and
satisfaction.

(ii) Teacher and school leader efficacy.

(iii) Anticipated school or district partners,
evidenced by signed partnership agreements.

(e) Assurances that the programs described in this section
will be no cost for participants and that participants will be compensated as
an employee for the duration of their training, including a paid residency,
fellowship, or student teaching.

(3) Recipients of grants under this section must submit
performance reports to the department not less than twice per year. Each report
must include the following information:

(i) The number of program participants
served and retention in the program or district.

(ii) Qualitative and quantitative participant
feedback.

(iii) Evidence of efficacy and progress toward
projected outcomes.

(4) The department shall ensure that all performance reports
required under subsection (3) are made publicly available on the department’s
website.

(5) Grant awards under this section must be structured into 3
tiers, as described in subsections (6), (8), and (11). All programs funded
under this section must address a measurable and critical problem related to
the health and efficacy of this state’s education talent working in Michigan
schools and be data- and research-driven, demonstrating effectiveness against
intended and measurable outcomes.

(6) Funding for tier 1 grant awards must not exceed
$50,000,000.00, unless otherwise directed by the legislature. The department
shall allocate at least 1 tier 1 grant of not less than $40,000,000.00. Tier 1
grants must sustain or further scale grow your own programs or educator
development programs that meet all of the following criteria:

(a) Have been in operation in this state for at least 5
years, and evaluated for at least 2 years by a rigorous, independent
Michigan-based evaluator, and results of the program have been made publicly
available.

(b) Have at least 2 consecutive years of public financial
audits of the program with no material findings.

(c) Demonstrate broad geographic reach and investment into
teachers and school leaders at every experience level, in partnerships
established with not fewer than 15 local education agencies across both urban
and rural regions, that extend back to the start of the 2023-2024 school year,
bound by written agreements that include data sharing with an independent
evaluator for evaluation purposes.

(d) Generate private matching funds.

(7) Notwithstanding section 18a, funds allocated for programs
described in subsection (6) may be available for expenditure until September
30, 2029. A recipient of funding for a program described in subsection (6) must
return any unexpended funds to the department in a manner prescribed by the
department by not later than October 30, 2029.

(8) Tier 2 grants must scale or sustain grow your own
programs or educator development programs that meet all of the following
criteria:

(a) Have been in operation for at least 3 years.

(b) Demonstrate promising internal results, but are not yet
supported by an independent evaluation.

(c) Serve a geographically diverse population, including both
urban and rural areas.

(d) Have a demonstrated track record of receiving private
philanthropic or corporate funding.

(9) Grant awards for programs described in subsection (8)
must not exceed $12,500,000.00 per year.

(10) Notwithstanding section 18a, funds allocated for
programs described in subsection (8) may be available for expenditure until
September 30, 2027. A recipient of funding for a program described in
subsection (8) must return any unexpended funds to the department in a manner
prescribed by the department by not later than October 30, 2027.

(11) Tier 3 grants must fund pilot-stage or early-stage grow
your own programs or educator development programs that meet all of the
following criteria:

(a) Have been in operation for fewer than 2 years.

(b) Do not yet have independent evaluation data available.

(c) Are limited in scope or geography.

(d) Include a documented path to scale or expand the program
to serve more educators or additional districts.

(12) Grant awards for programs described in subsection (11)
must not exceed $5,000,000.00 per year.

(13) Notwithstanding section 18a, funds allocated for
programs described in subsection (11) may be available for expenditure until
September 30, 2027. A recipient of funding for a program described in
subsection (11) must return any unexpended funds to the department in a manner
prescribed by the department by not later than October 30, 2027.

(14) An individual may not concurrently receive funding for
programs under this section and programs funded under sections 27a and 27c.

(15) Notwithstanding section 17b, the department shall make
payments under this section by not later than December 15, 2025.

Sec.
27c. (1) From the state school aid fund money appropriated in section 11, there
is allocated $30,000,000.00 for 2025-2026 and from the educator fellowship
public provider fund money appropriated in section 11, there is allocated
$20,000,000.00 for 2025-2026 for the MI future educator student teacher stipend
program. Except as otherwise provided in this section, the funds allocated
under this section must be paid to eligible educator preparation programs for
payments to eligible student teachers working in a district. At the close of
the fiscal year, state school aid fund money allocated under this section that
is unspent must be deposited into the educator fellowship public provider fund
in section 27d.

(2) An eligible student teacher under this subsection must
meet all of the following:

(a) The individual must be admitted to an eligible educator
preparation program, be working toward a teacher certification, and be
participating in required student teaching coursework. As used in this
subdivision, “required student teaching coursework” means credit hours, or the
program equivalent, required by an eligible educator preparation program for
successful completion of the program. This coursework must include regular
placement in a district where the student gains real-world, first-hand experience
working in a classroom, teaching students, engaging in the day-to-day
activities of a certified teacher, and working daily under the guidance of a
certified teacher.

(b) The individual must timely complete an application in a
form and manner prescribed by the department of lifelong education,
advancement, and potential. The application must include the district in which
the individual is working as a student teacher and must include a certification
by the district and the individual’s eligible educator preparation program that
the student is working as a student teacher. If the individual’s eligible
educator preparation program is not provided by a public institution of higher
education, the district in which the individual is working must also provide an
assurance that they will forward any amount received under this section from
the department of lifelong education, advancement, and potential for purposes
of the program described in this section to the individual’s eligible educator
preparation program.

(c) The individual must not have received a payment from
funds under this subsection previously, unless the individual is enrolled in an
eligible educator preparation program that requires multiple semesters of
student teaching. An individual may receive not more than 2 awards under this
section.

(d) If an individual is employed by their district as a
teacher of record, they are not eligible for payment under this section.

(e) An individual that is a current City Year corps member
enrolled in an eligible educator preparation program is eligible for payment under
this section.

(3) The department of lifelong education, advancement, and
potential shall pay each eligible educator preparation program an amount not to
exceed $9,600.00 per academic semester for each eligible student teacher
working in a district. If the individual’s eligible educator preparation
program is not provided by a public institution of higher education, the
department of lifelong education, advancement, and potential shall pay an
amount not to exceed $9,600.00 per academic semester to the district in which
the individual is working as a student teacher, and that district must forward
the amount received to the individual’s eligible educator preparation program.
It is intended that payments under this subsection are made at the beginning of
the semester in 1 lump sum for eligible student teachers.

(4) Eligible educator preparation programs shall pay funds
received under this section, in entirety, to the eligible student teacher.

(5) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this section on
a schedule determined by the department of lifelong education, advancement, and
potential.

(6) If the amount allocated in subsection (1) is insufficient
to fully fund awards under this section, there is appropriated from the
educator fellowship public provider fund in section 27d the amount necessary to
fully fund the programs described in this section. The state budget director
shall notify the house and senate appropriations subcommittees on K to 12
school aid and the house and senate fiscal agencies of any additional
appropriation described in this subsection.

(7) As used in this section, “eligible educator preparation
program” means an institution of higher education that meets all of the
following:

(a) Is a public or private institution of higher education in
this state.

(b) Has an established school of education with an educator
preparation program approved by the department.

(c) Has not been deemed as ineligible to receive Michigan
achievement scholarship funding under section 248 as a result of exceeding
tuition restraint requirements described in section 248.

Sec.
27h. (1) Subject to the provisions of this subsection, in addition to the money
appropriated in section 11, from the state school aid fund there is
appropriated for 2024-2025 only for the purposes of this section an amount not
to exceed $49,418,800.00. Programs funded under this section are intended to
expand support for new teachers, school counselors, and administrators; improve
their instructional practices; and improve teacher retention. The appropriation
and allocations in this section are conditional on the effective issuance of a
directive by the state budget director, pursuant to section 451a of the
management and budget act, 1984 PA 431, MCL 18.451a, to lapse all
remaining funding from a work project that was established under this section
in 2023-2024. The amount appropriated and allocated under this section may not
exceed the amount lapsed from the work project as described in the immediately
preceding sentence.

(2) From the appropriation under subsection (1), the
department shall provide grants to districts for mentor services for teachers
and school administrators as required under sections 1249b and 1526 of the
revised school code, MCL 380.1249b and 380.1526.

(3) To receive a grant under this section, a district must
apply for the grant in a form and manner prescribed by the department, and must ensure that
mentoring services funded under this section align with the research-based
mentor standards developed by the department under subsection (6), as
determined by the department.

(4) Districts that receive grants under subsection (2) may
use the funding for any of the following allowable expenditures:

(a) Stipends for any of the following individuals:

(i) Veteran teachers who serve as mentor
teachers of teachers participating in grow your own programs.

(ii) Veteran teachers who serve as mentor
teachers for teachers who are within their first 3 years of teaching.

(b) Training for mentor teachers.

(c) Books, materials, professional learning expenses, and
other resources necessary for mentoring and onboarding new teachers.
Professional learning expenses under this subdivision must be in addition to
professional learning requirements described under section 1526 of the revised
school code, MCL 380.1526.

(d) Staffing costs to cover time spent by both new and mentor
teachers dedicated to mentoring and onboarding rather than being in the
classroom or performing other job duties.

(e) Contracting with 1 or more established state professional
organizations to provide mentoring services to school administrators. An amount
equal to $3,000.00 per administrator per year or the actual program cost,
whichever is lesser, of the costs described in this subdivision may be
reimbursed from grant funding under subsection (2). The
department shall develop a list of approved providers of mentoring activities
for school administrators as described in this subdivision. Programs on the
list must align with the research-based mentor standards developed under
subsection (6).

(5) From the appropriation under subsection (1), there is
allocated $1,500,000.00 per year to provide mentoring services for school
administrators subject to subsections (3) and (4). Grants under this subsection
must be awarded in the amount of $3,000.00 per eligible school administrator
per year or the actual program cost, whichever is less. If funding under this
subsection is not sufficient to fully fund all eligible applicants, the
department shall not prorate awards. If funding remains unspent under this
subsection after grants to all eligible applicants have been awarded, the
department may reallocate those funds to other approved mentoring activities
under this section.

(6) From the appropriation under subsection (1), there is
allocated $500,000.00 for a competitive grant to assist the department with the
development of research-based mentor standards, curricula, and professional
learning to ensure mentors are prepared to support new teachers. Intermediate
districts and other educational entities are eligible to apply for this grant
in a form and manner determined by the department.

(7) From the appropriation under subsection (1), there is
allocated $500,000.00 for a competitive grant to conduct a program evaluation
of activities funded under this section. The evaluation must identify
recommendations to strengthen the program. Qualified evaluators are eligible to
apply for this grant in a form and manner prescribed by the department. The
funds allocated under this subsection for 2024-2025 are a work project
appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026.
The purpose of the work project is to evaluate the activities under this
section. The estimated completion date of the work project is September 30,
2028.

(8) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(9) Subject to subsection (7), the funds allocated under this
section for 2024-2025 are a work project appropriation, and any unexpended
funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work
project is to continue support for grants for mentor stipends. The estimated
completion date of the work project is September 30, 2029. It is the intent of
the legislature that up to $10,000,000.00 be expended each year. If the
annual expenditures described in this subsection total less than $10,000,000.00
after grants to all eligible applicants have been awarded, the department may
reallocate those funds to support mentoring services for other certified
educators not otherwise permitted under subsection (2).

Sec.
27l. (1) From
the state school aid fund money appropriated in section 11, there is allocated
$203,000,000.00 for 2024-2025 only, and from the MPSERS obligation reform
reserve fund money appropriated under section 11, there is allocated the
remaining balance, estimated at $147,300,000.00 for 2024-2025 only to districts
and intermediate districts for the purposes of this section. The state school
aid fund allocation in this section is conditional on the effective issuance of
a directive by the state budget director, pursuant to section 451a of the
management and budget act, 1984 PA 431, MCL 18.451a, to lapse all remaining
funding from a work project that was established under section 27k in
2023-2024. The amount allocated from the state school aid fund under this
section may not exceed the amount lapsed from the work project as described in
the immediately preceding sentence.

(2) The state school aid fund money allocated in subsection
(1) is allocated to districts and intermediate districts in an equal amount per
pupil. Subject
to subsection (3), a district or intermediate district shall use all of the
funding allocated under this subsection to increase compensation for educators
in the district or intermediate district.

(3)
If there are 1 or multiple labor unions representing educators in the district
or intermediate district, the district or intermediate district shall bargain
any increases in compensation under subsection (2) with those unions. All
payments to educators made by districts or intermediate districts with funds
allocated under subsection (2) shall be in addition to any existing
compensation negotiated in a collective bargaining agreement.

(4)
The MPSERS obligation reform reserve fund money allocated in subsection (1) is
allocated for payments to participating entities to offset normal costs
associated with retiree health benefits. The amount allocated to each
participating entity under this subsection must be based on the participating
entity’s proportion of the total funding distributed in 2024-2025 under section
147g. Participating entities must use funding distributed under this subsection
as an offset for normal costs associated with retiree health benefits.

(5)
Notwithstanding section 17b, the department shall make payments under this
section on a schedule determined by the department.

(6)
The funds allocated under this section for 2024-2025 are a work project
appropriation, and any unexpended funds for 2024-2025 are carried forward into
2025-2026. The purpose of the work project is to increase compensation for
educators and offset normal costs associated with retiree health care benefits.
The estimated completion date of the work project is September 30, 2026.

(7)
As used in this section:

(a)
“Educator” includes, but is not limited to, teachers, librarians, speech
therapists, language therapists, physical therapists, occupational therapists,
school counselors, school social workers, school psychologists, school nurses,
paraprofessionals aids, food service workers, custodians, bus drivers, and
literacy coaches. Educator also includes any other school employee covered
under a collective bargaining agreement.

(b)
“Participating entity” means a district, intermediate district, district
library, or community college that is 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 reports
employees to the Michigan public school employees’ retirement system for the
applicable fiscal year.

Sec.
27p. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2024-2025 only an amount not to exceed $12,500,000.00 to
Marquette-Alger RESA for an apprenticeship model grow your own program as part
of a consortia of at least 45 intermediate districts.

(2) The intermediate district receiving funding under this
section shall use the funding to implement a grow your own program. A grow your
own program described in this section must be implemented to improve the
teacher talent pipeline and provide a no-cost pathway for support staff members
to become certified teachers. Allowable expenses for grow your own programs
under this section include, but are not limited to, all of the following:

(a) Tuition and fees for an accelerated degree, for a
traditional bachelor’s degree for current candidates who are not teachers, or
for an advanced degree. As used in this subdivision, “advanced degree”
includes, but is not limited to, a postbaccalaureate credential or certificate.

(b) Books.

(c) Testing fees.

(d) Travel to and from coursework.

(e) Substitute employee salary and wages for the duration of
the educator preparation program attended by the recipient staff of the
district or intermediate district.

(f) Costs for curriculum, materials, professional
development, and hands-on-learning experiences to implement a program within
the district or intermediate district to encourage students in any of grades 6
to 12 to consider a career in education. Not more than 10% of funds received by
a district or intermediate district under this section may be used for this
purpose.

(3) An intermediate district may not concurrently receive
funding under this section and receive funding under section 27b for 2022-2023,
unless already awarded by the department under section 27b before July 1, 2024.
An intermediate district receiving funding under this section shall not give
funding received under this section to a constituent district that is receiving
funding under section 27b.

(4) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(5) The funds allocated under this section for 2024-2025 are
a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to continue
support for the grow your own programs under this section. The estimated
completion date of the work project is September 30, 2027.

Sec.
27r. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2024-2025 only an amount not to exceed $7,000,000.00 to Kent
ISD for the West Michigan Teacher Collaborative as a part of a consortium of at
least 3 intermediate districts. The West Michigan Teacher Collaborative shall
use the funding to implement a grow your own program.

(2) A grow your own program described in this section must be
implemented to improve the teacher talent pipeline and provide a no-cost
pathway for support staff members to become certified teachers. Allowable
expenses for grow your own programs under this section include, but are not
limited to, all of the following:

(a) Tuition and fees for an accelerated degree, for a
traditional bachelor’s degree for current candidates who are not teachers, or
for an advanced degree. As used in this subdivision, “advanced degree”
includes, but is not limited to, a postbaccalaureate credential or certificate.

(b) Books and supplies.

(c) Testing fees.

(d) Travel to and from coursework.

(e) Substitute employee salary and wages for the duration of
the educator preparation program attended by the recipient staff of the
district or intermediate district.

(f) Costs for curriculum, materials, professional
development, and hands-on learning experiences to implement a program within
the district or intermediate district to encourage students in grades 6 to 12
to consider a career in education. Not more than 10% of the funding may be used
for this purpose.

(3) In addition to the allowable uses in subsection (2), the
West Michigan Teacher Collaborative may use the money received under this
section for any of the following purposes:

(a) Recruiting, retaining, and developing teachers to ensure
greater efficacy, satisfaction, and outcomes.

(b) Serving as a convener and model for other local and
intermediate school districts interested in developing and improving grow your
own programs.

(c) Engaging in rigorous program evaluation and research so
that this state can learn from its investments and innovations and become a top
state for educators.

(4) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(5) The funds allocated under this section for 2024-2025 are
a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to continue
support for the grow your own programs under this section. The estimated
completion date of the work project is September 30, 2028.

Sec.
28. (1) To recognize differentiated instructional costs for different types of
pupils as well as additional costs to provide essential services in 2025-2026,
the following sections provide a weighted foundation allocation or an
additional payment of some type in the following amounts, as allocated under
those sections:

(a) Section 22d, isolated and rural districts, $12,873,100.00.

(b) Section 22l, transportation
reimbursement, $125,000,000.00.

(c) Section 29, declining enrollment, $71,000,000.00.

(d) Section 31a, at risk, $1,293,655,000.00.

(e) Section 32d, great start readiness program,
$656,217,600.00.

(f) Section 41, bilingual education for English language
learners, $62,732,600.00.

(g) Section 51c, special education, mandated percentages,
$1,107,900,000.00.

(h) Section 54d, early on, $23,670,700.00.

(i) Section 61a, career and technical education, standard
reimbursement, $41,733,800.00.

(j) Section 61d, career and technical education incentives,
$13,400,000.00.

(2) The funding described in subsection (1) is not a separate
allocation of any funding but is instead a listing of funding allocated in the
sections listed in subsection (1).

Sec.
29. (1) The enrollment stabilization fund is created as a separate account in
the state school aid fund for the purpose of stabilizing the effects of
declining enrollment.

(2) The state treasurer may receive money or other assets
from any source for deposit into the enrollment stabilization fund. The state
treasurer shall direct the investment of the enrollment stabilization fund. The
state treasurer shall credit to the enrollment stabilization fund interest and
earnings from enrollment stabilization fund investments.

(3) Money in the enrollment stabilization fund at the close
of the fiscal year remains in the enrollment stabilization fund and does not
lapse to the state school aid fund or the general fund.

(4) The department of treasury is the administrator of the
enrollment stabilization fund for auditing purposes.

(5) Money available in the enrollment stabilization fund
must not be expended without a specific appropriation.

(6) From the enrollment stabilization fund money appropriated
under section 11, there is allocated an amount not to exceed $71,000,000.00 for
2025-2026 for districts and intermediate districts for which membership in the
immediately preceding fiscal year, as calculated under section 6 in the
immediately preceding fiscal year, exceeds membership in the current fiscal
year, as calculated under section 6 in the current fiscal year.

(7) The allocation under subsection (6) must be an amount
equal to the sum of the product of .50 and the district’s or intermediate
district’s membership for the immediately preceding fiscal year, as calculated
under section 6 of the immediately preceding fiscal year, and the product of
.50 and the district’s or intermediate district’s membership in the current
fiscal year, as calculated under section 6 of the current fiscal year, minus
the district’s or intermediate district’s membership in the current fiscal
year, as calculated under section 6 of the current fiscal year, multiplied by
the target foundation allowance for the current fiscal year.

Sec.
30d. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $200,000,000.00 for 2025-2026, and from the general fund
money appropriated in section 11, there is allocated an amount not to exceed
$1,600,000.00 for 2025-2026 only for the purpose of making payments to
participating entities to provide free school lunch and breakfast to public
school and nonpublic school pupils in grades pre-K to 12.

(2) To receive funding under this section, a participating
entity must participate in the National School Lunch Program and must do all of
the following:

(a) Provide reimbursable breakfasts and reimbursable lunches
at no cost to all students for any school breakfast program or school lunch
program operated by the participating entity.

(b) Submit information regarding the number of reimbursable
breakfasts and reimbursable lunches served in a manner prescribed by the
department.

(c) Maximize federal reimbursement for reimbursable
breakfasts and reimbursable lunches by operating under the CEP if the
participating entity has an identified student percentage greater than or equal
to the minimum requirement to be eligible to participate in the CEP. For
purposes of this subdivision, all eligible participating entities must elect
CEP on behalf of a single school, a group or groups of schools, or all schools
in the participating entity, as applicable, in a manner that maximizes federal
reimbursement.

(d) Meet all applicable state and federal standards in its
school breakfast and lunch programs, as determined by the department.

(e) Take all efforts to maximize and implement policies that
require parents or guardians to fill out relevant family income information, in
a manner prescribed by the department, for the purposes of determining student
eligibility for federal free or reduced cost meal reimbursement rates and CEP
eligibility determinations.

(f) Forgive all school meal debt related to federally
reimbursable meals, as determined by the department.

(3) Participating entities are encouraged to offer meals that
meet students’ dietary restrictions, including the provision of gluten-free
meals, vegetarian meals, vegan meals, and, upon request, kosher meals, halal
meals, and meals meeting any allergy restrictions as confirmed by a doctor’s
note. Participating
entities are encouraged to purchase food from Michigan growers when possible
and practical.

(4) For each eligible participating entity, the department
shall pay an amount equal to the following:

(a) The amount equal to the federal rate per student paid per
pupil per free breakfast and lunch under the Child Nutrition Act of 1966, 42
USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act, 42 USC
1751 to 1769j, multiplied by the number of breakfasts and lunches provided by
the participating entity to students, less the federal revenue received by the
participating entity under the school breakfast program and the school lunch
program under the Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the
Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j,
and other state lunch payments received under section 31d.

(b) The amount equal to the federal rate per student paid per
pupil per free breakfast and lunch under the Child Nutrition Act of 1966, 42
USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act, 42 USC
1751 to 1769j, multiplied by the number of breakfasts and lunches provided by
the participating entity, as applicable, to children participating in the Great
Start Readiness Program under section 32d at the participating entity, less all
other federal and state lunch payments made for those children. For purposes of
this subdivision, compliance with 7 CFR 226.9 is required. The department shall
assign rates of reimbursement pursuant to 7 CFR 226.9, at least annually, on
the basis of family size and income information reported by each eligible
participating entity. Assigned rates of reimbursement must be adjusted annually
to reflect changes in the national average payment rates.

(5) Notwithstanding section 17b, the department may make
payments under this section on a schedule determined by the department.

(6) As used in this section:

(a) “CEP” means the Community Eligibility Provision under the
Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j.

(b) “Participating entity” means a district, intermediate
district, nonpublic school, or the Michigan Schools for the Deaf and Blind.

(7) In addition to the appropriations in section 11, if the
amount allocated in subsection (1) is insufficient to fully reimburse districts
for meals as required in this section, there is appropriated from the school
meals reserve fund created in section 30e the amount necessary to fully fund
these reimbursements.

Sec.
31a. (1) There is allocated for 2025-2026 an amount not to exceed
$1,336,805,000.00 from the state school aid fund money appropriated in section
11 and an amount not to exceed $1,500,000.00 from the general fund money
appropriated in section 11 for payments to eligible districts and eligible
public school academies for the purposes of ensuring that pupils are proficient
in English language arts by the end of grade 3, that pupils are proficient in
mathematics by the end of grade 8, that pupils are attending school regularly,
that high school graduates are career and college ready, and for the purposes
under subsections (7), (8), and (23).

(2) For a district or public school academy to be eligible to
receive funding under this section, other than funding under subsection (7),
(8), or (23), the district or public school academy, for grades K to 12, must
comply with the requirements under section 1280f of the revised school code,
MCL 380.1280f, and must use resources to address early literacy and numeracy,
and for at least grades K to 12 or, if the district or public school academy
does not operate all of grades K to 12, for all of the grades it operates, must
implement a multi-tiered system of supports that is an evidence-based framework
that uses data driven problem solving to integrate academic and behavioral
instruction and that uses intervention delivered to all pupils in varying
intensities based on pupil needs. The multi-tiered system of supports described
in this subsection must provide at least all of the following essential
components:

(a) Team-based leadership.

(b) A tiered delivery system.

(c) Selection and implementation of instruction,
interventions, and supports.

(d) A comprehensive screening and assessment system.

(e) Continuous data-based decision making.

(3) From the state school aid fund money allocated under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$1,293,655,000.00 to continue a weighted foundation per pupil payment for
districts and public school academies enrolling economically disadvantaged
pupils. The department shall pay under this subsection to each eligible
district or eligible public school academy an amount per pupil equal to a
percentage calculated under subsection (4) multiplied by the target foundation
allowance for the following, as applicable:

(a) Except as otherwise provided under subdivision (b), (c),
or (d) the greater of the following:

(i) The number of membership pupils in the
district or public school academy who are determined to be economically
disadvantaged, as reported to the center in the form and manner prescribed by
the center not later than the fifth Wednesday after the pupil membership count
day of the immediately preceding fiscal year.

(ii) If the district or public school academy
is in the community eligibility program, the number of pupils determined to be
eligible based on the product of the identified student percentage multiplied
by the total number of pupils in the district or public school academy, as
reported to the center in the form and manner prescribed by the center not
later than the fifth Wednesday after the pupil membership count day of the
immediately preceding fiscal year. These calculations must be made at the
building level. This subparagraph only applies to an eligible district or
eligible public school academy for the fiscal year immediately following the
first fiscal year in which it is in the community eligibility program. As used
in this subparagraph, “identified student percentage” means the quotient of the
number of pupils in an eligible district or eligible public school academy who
are determined to be economically disadvantaged, as reported to the center in a
form and manner prescribed by the center, not later than the fifth Wednesday
after the pupil membership count day in the fiscal year preceding the first
fiscal year in which the eligible district or eligible public school academy is
in the community eligibility program, divided by the total number of pupils
counted in an eligible district or eligible public school academy on the pupil
membership count day in the fiscal year preceding the first fiscal year in
which the eligible district or eligible public school academy is in the
community eligibility program.

(b) If the district or public school academy began operations
as a district or public school academy after the pupil membership count day of
the immediately preceding school year, the number of membership pupils in the
district or public school academy who are determined to be economically
disadvantaged, as reported to the center in the form and manner prescribed by
the center not later than the fifth Wednesday after the pupil membership count
day of the current fiscal year.

(c) If the district or public school academy began operations
as a district or public school academy after the pupil membership count day of
the current fiscal year, the number of membership pupils in the district or
public school academy who are determined to be economically disadvantaged, as
reported to the center in the form and manner prescribed by the center not
later than the fifth Wednesday after the supplemental count day of the current
fiscal year.

(d) If, for a particular fiscal year, the number of
membership pupils in a district or public school academy who are determined
under subdivision (a) to be economically disadvantaged or to be eligible based
on the identified student percentage varies by more than 20 percentage points
from the number of those pupils in the district or public school academy as
calculated under subdivision (a) for the immediately preceding fiscal year
caused by an egregious reporting error by the district or public school academy,
the department may choose to have the calculations under subdivision (a)
instead be made using the number of membership pupils in the district or public
school academy who are determined to be economically disadvantaged, as reported
to the center in the form and manner prescribed by the center not later than
the fifth Wednesday after the supplemental count day of the immediately
preceding fiscal year.

(4) Each district or public school academy must be assigned
an opportunity index score each fiscal year, the value of which is the quotient
of the number of economically disadvantaged pupils as determined under
subsection (3) for the district or public school academy and the total
number of pupils in the district or public school academy in the immediately
preceding fiscal year, multiplied by 100 and rounded up to the nearest whole
number. Each district or public school academy must be assigned an opportunity
index band as follows:

(a) A district or public school academy with an opportunity
index score greater than or equal to 0 but less than 20 must be assigned to
band 1 and shall receive reimbursement under subsection (3) at a rate of at
least 35.0% and less than 36.0%. The reimbursement rate under this subdivision
must be an amount equal to the district’s opportunity index score minus 1,
multiplied by the band adjustment factor applicable to this subdivision, plus
35.0%.

(b) A district or public school academy with an opportunity
index score greater than or equal to 20 but less than 44 must be assigned to
band 2 and shall receive reimbursement under subsection (3) at a rate of at
least 36.0% and less than 37.5%. The reimbursement rate under this subdivision
must be an amount equal to the district’s opportunity index score minus 20,
multiplied by the band adjustment factor applicable to this subdivision, plus
36.0%.

(c) A district or public school academy with an opportunity
index score greater than or equal to 44 but less than 59 must be assigned to
band 3 and shall receive reimbursement under subsection (3) at a rate of at
least 37.5% and less than 39.0%. The reimbursement rate under this subdivision
must be an amount equal to the district’s opportunity index score minus 44,
multiplied by the band adjustment factor applicable to this subdivision, plus
37.5%.

(d) A district or public school academy with an opportunity
index score greater than or equal to 59 but less than 73 must be assigned to
band 4 and shall receive reimbursement under subsection (3) at a rate of at
least 39.0% and less than 42.0%. The reimbursement rate under this subdivision
must be an amount equal to the district’s opportunity index score minus 59,
multiplied by the band adjustment factor applicable to this subdivision, plus
39.0%.

(e) A district or public school academy with an opportunity
index score greater than or equal to 73 but less than 85 must be assigned to
band 5 and shall receive reimbursement under subsection (3) at a rate of at
least 42.0% and less than 47.0%. The reimbursement rate under this subdivision
must be an amount equal to the district’s opportunity index score minus 73,
multiplied by the band adjustment factor applicable to this subdivision, plus
42.0%.

(f) A district or public school academy with an opportunity
index score greater than or equal to 85 must be assigned to band 6 and shall
receive reimbursement under subsection (3) at a rate of 47.0%.

(g) As used in this subsection, “band adjustment factor”
means an amount equal to the difference between the lowest and highest
reimbursement bounds for each band, divided by the number of possible
opportunity index scores in that band.

(5) Except as otherwise provided in this section, a district
or public school academy receiving funding under this section shall use that
money only to provide instructional programs and direct noninstructional
services, including, but not limited to, medical, mental health, or counseling
services, for at-risk pupils; for school health clinics; and for the purposes
of subsection (6), (7), (8), or (23). In addition, a district that is a school
district of the first class or a district or public school academy in which at
least 50% of the pupils in membership were determined to be economically
disadvantaged in the immediately preceding state fiscal year, as determined and
reported as described in subsection (3), may use the funds it receives under
this section for school security or school parent liaison personnel. The uses
of the funds described in the immediately preceding sentence must align to the
needs assessment and the multi-tiered system of supports model and, for funds
spent on parent liaison personnel, must connect parents to the school
community. A district or public school academy shall not use any of the money
received under this section for administrative costs. The instruction or direct
noninstructional services provided under this section may be conducted before
or after regular school hours or by adding extra school days to the school
year.

(6) A district or public school academy that receives funds
under this section and that operates a school breakfast program under section
1272a of the revised school code, MCL 380.1272a, shall use from the funds
received under this section an amount, not to exceed $10.00 per pupil for whom
the district or public school academy receives funds under this section,
necessary to pay for costs associated with the operation of the school
breakfast program.

(7) From the state school aid fund money allocated under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$33,000,000.00, to support primary health care services provided to children
and adolescents up to age 21. These funds must be expended in a form and manner
determined jointly by the department and the department of health and human
services. When making funding decisions for new adolescent health centers under
this subsection, the department and department of health and human services
shall prioritize support for primary health care services in unserved and
underserved counties as determined by the department of health and human
services. An amount equal to 4% of the funds allocated under this subsection
must be made available for technical support and coordination services from a
nonprofit organization exclusively dedicated to serving adolescent health
centers in this state and that has a membership that includes federally
qualified health centers, local public health departments, hospital systems,
and public school districts. As a requirement of being awarded the funds under
this subsection as prescribed under this subsection, a nonprofit organization
described in this subsection shall make readily available technical support and
coordination services to all child and adolescent health centers in this state.

(8) From the state school aid fund money allocated under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$10,150,000.00 for the state portion of the hearing and vision screenings as
described in part 93 of the public health code, 1978 PA 368, MCL 333.9301 to
333.9329, and, from the general fund money allocated under subsection (1),
there is allocated for 2025-2026 an amount not to exceed $1,500,000.00 for the
state portion of the dental screenings as described in part 93 of the public
health code, 1978 PA 368, MCL 333.9301 to 333.9329. A local public health
department shall pay at least 50% of the total cost of the screenings. The
frequency of the vision screenings must be as required under R 325.13091 to R
325.13096 of the Michigan Administrative Code and the frequency of the hearing
screenings must be as required under R 325.3271 to R 325.3276 of the
Michigan Administrative Code. Funds must be awarded in a form and manner
approved jointly by the department and the department of health and human
services. Notwithstanding section 17b, the department shall make payments to
eligible entities under this subsection on a schedule determined by the
department.

(9) Each district or public school academy receiving funds
under this section shall submit to the department by July 15 of each fiscal
year a report, in the form and manner prescribed by the department, that
includes a brief description of each program conducted or services performed by
the district or public school academy using funds under this section, the
amount of funds under this section allocated to each of those programs or
services, the total number of at-risk pupils served by each of those programs
or services, and the data necessary for the department and the department of
health and human services to verify matching funds for the temporary assistance
for needy families program. In prescribing the form and manner of the report,
the department shall ensure that districts are allowed to expend funds received
under this section on any activities that are permissible under this section.
If a district or public school academy does not comply with this subsection,
the department shall withhold an amount equal to the August payment due under
this section until the district or public school academy complies with this
subsection. If the district or public school academy does not comply with this
subsection by the end of the fiscal year, the withheld funds are forfeited to
the school aid fund.

(10) To receive funds under this section, a district or
public school academy must allow access for the department or the department’s
designee to audit all records related to the program for which it receives
those funds. The district or public school academy shall reimburse the state
for all disallowances found in the audit.

(11) Subject to subsections (6), (7), (8), and (23), for
schools in which more than 40% of pupils are identified as at-risk, a district
or public school academy may use the funds it receives under this section to
implement tier 1, evidence-based practices in schoolwide reforms that are
guided by the district’s comprehensive needs assessment and are included in the
district improvement plan. Schoolwide reforms must include parent and community
supports, activities, and services, that may include the pathways to potential
program created by the department of health and human services or the
communities in schools program. As used in this subsection, “tier 1,
evidence-based practices” means research based instruction and classroom
interventions that are available to all learners and effectively meet the needs
of most pupils.

(12) A district or public school academy that receives funds
under this section may use those funds to provide research based professional
development and to implement a coaching model that supports the multi-tiered
system of supports framework. Professional development may be provided to
district and school leadership and teachers and must be aligned to professional
learning standards; integrated into district, school building, and classroom
practices; and solely related to the following:

(a) Implementing the multi-tiered system of supports required
in subsection (2) with fidelity and utilizing the data from that system to
inform curriculum and instruction.

(b) Implementing section 1280f of the revised school code,
MCL 380.1280f, as required under subsection (2), with fidelity.

(13) A district or public school academy that receives funds
under subsection (3) may use funds received under subsection (3) for support
staff providing services to at-risk pupils.

(14) A district or public school academy may use up to 60% of
the funds it receives under this section for the following purposes:

(a) Up to 30% to reduce the teacher to pupil ratio in grades
K to 3.

(b) Up to 30% to support retention and recruitment efforts
that help reduce staff turnover and vacancies of instructional and support
staff if the district or public school academy is assigned to opportunity index
band 4, 5, or 6.

(15) Funds used as described in subsection (14) must align
with the needs assessment and the multi-tiered system of supports model. A
district or public school academy shall not use any of the money described in
subsection (14) for administrative costs or to supplant existing funding,
including, but not limited to, maintaining existing salaries or costs. A
district or public school academy shall report its intent to use funds
described in subsection (14) to the department by not later than November 1 of
the current fiscal year.

(16) A district or public school academy determined to be
eligible to use a portion of funds received under subsection (3) for the
purposes described in subsection (14) retains the ability to use funding for
the purposes described in subsection (14) for the fiscal year in which
eligibility was determined plus 2 additional fiscal years beyond that fiscal
year.

(17) Beginning with the fiscal year ending September 30,
2026, and each year thereafter, for a district receiving funding under this
section through the opportunity index formula, the district must provide a
report to parents or legal guardians that details the amount of funding
received under that allocation, how the district distributed that funding in a
way to target buildings with the highest needs, and what evidence-based
interventions were implemented with those dollars. The report must include a
method, including contact information, for parents or legal guardians to
provide feedback on the use of these dollars as well as to seek more
information about services and interventions available for their children.

(18) A district or public school academy that receives funds
under this section may use up to 10% of the funds received under this section
to provide evidence-based instruction for pre-kindergarten instructional and
noninstructional services to at-risk pupils.

(19) Except as otherwise provided in this subsection, if
necessary, the department shall prorate payments under this section, except
payments under subsection (7), (8), or (23), by reducing the amount of the
allocation as otherwise calculated under this section by an equal percentage
per district. Subject to the availability of funds, if proration is necessary
under this subsection, the department must ensure that no district receives an
amount less than 11.5% of the target foundation for each economically disadvantaged
pupil enrolled in the district.

(20) If a district is dissolved pursuant to section 12 of the
revised school code, MCL 380.12, the intermediate district to which the
dissolved district was constituent shall determine the estimated number of
pupils that are economically disadvantaged and that are enrolled in each of the
other districts within the intermediate district and provide that estimate to
the department for the purposes of distributing funds under this section within
60 days after the district is declared dissolved.

(21) A district or public school academy that receives funds
under this section may use funds received under this section to provide an
anti-bullying or crisis intervention program.

(22) The department shall collaborate with the department of
health and human services to prioritize assigning Pathways to Potential success
coaches to elementary schools that have a high percentage of pupils in grades K
to 3 who are not proficient in English language arts, based upon state
assessments for pupils in those grades.

(23) From the state school aid fund money appropriated under
section 11, there is allocated for 2023-2024 only an amount not to exceed
$10,000,000.00 for an electronic patient data and health care analytic system
to be made available to each child and adolescent health center program. The
department of health and human services shall collaborate on system implementation
with a nonprofit organization exclusively dedicated to serving child and
adolescent health center programs in this state and that has a membership that
includes federally qualified health centers, local public health departments,
hospital systems, and public school districts, including, but not limited to,
technology assessment, design, coordination, and system implementation with
child and adolescent health center programs. Funds appropriated under this
subsection are a work project appropriation and any unexpended funds for 2023-2024
are carried forward into 2024-2025. The purpose of the work project is to
continue to implement an electronic patient data and health care analytic
system. The estimated completion date of the work project is September 30, 2028.

(24) As used in this section:

(a) “At-risk pupil” means a pupil in grades pre-K to 12 for
whom the district has documentation that the pupil meets any of the following
criteria:

(i) The pupil is economically disadvantaged.

(ii) The pupil is an English language
learner.

(iii) The pupil is chronically absent as
defined by and reported to the center.

(iv) The pupil is a victim of child abuse or
neglect.

(v) The pupil is a pregnant teenager or
teenage parent.

(vi) The pupil has a family history of school
failure, incarceration, or substance abuse.

(vii) The pupil is an immigrant who has
immigrated within the immediately preceding 3 years.

(viii) The pupil did not complete high school
in 4 years and is still continuing in school as identified in the Michigan
cohort graduation and dropout report.

(ix) For pupils for whom the results of the
state summative assessment have been received, is a pupil who did not achieve
proficiency on the English language arts, mathematics, science, or social
studies content area assessment.

(x) Is a pupil who is at risk of not meeting
the district’s or public school academy’s core academic curricular objectives
in English language arts or mathematics, as demonstrated on local assessments.

(b) “Economically disadvantaged” means a pupil who has been
determined eligible for free or reduced-price meals as determined under the
Richard B. Russell national school lunch act, 42 USC 1751 to 1769j; who is in a
household receiving supplemental nutrition assistance program or temporary
assistance for needy families assistance; or who is homeless, migrant, or in
foster care, as reported to the center.

(c) “English language learner” means limited English
proficient pupils who speak a language other than English as their primary
language and have difficulty speaking, reading, writing, or understanding
English as reported to the center.

Sec.
31c. (1) From
the state school aid fund money appropriated in section 11, there is allocated
for 2025-2026 only an amount not to exceed $65,000,000.00 for grants to
eligible districts for pilot programs to maintain or establish small classes in
grades K to 3 in eligible school buildings in the district.

(2) To be eligible for a grant under subsection (1), a
district must have at least 1 eligible school building and must apply to the
department in the form and manner prescribed by the department. A district
shall include in its application a projected budget for maintaining or
establishing small classes in grades K to 3 and shall demonstrate in the
projected budget that at least 30% of the funds received by the district under
section 31a will be used to support small classes under this section.

(3) For a school building to be considered an eligible school
building under subsection (2), the school building must meet all of the
following requirements:

(a) Operate at least 1 of grades K to 3.

(b) Be operated by a district that operates all of grades K
to 12 and that receives funds under section 31a.

(c) Be located in a district that is in an opportunity index
band, as described in section 31a, of 4 or higher.

(4) Not more than 25% of the total allocation under this
section may be paid to any single district. The department shall make
allocations under this section to districts that are geographically diverse,
including urban, suburban, and rural districts. Grants issued under this
section must be awarded to at least the following districts:

(a) Muskegon Heights Public School Academy System.

(b) Benton Harbor Area Schools.

(c) Flint School District.

(d) Wayne-Westland Community School District.

(5) A district that receives funds under this section shall
use the funds to maintain or establish small classes in grades K to 3 in school
buildings of the district for which funds are received under this section. The
average class size must be not more than 17 pupils per class, with not more
than 19 pupils in any particular class. A district that receives funds under
this section shall use at least 30% of the funds the district receives for
2025-2026 under section 31a for the purposes of this section.

(6) Funding to districts under this section for 2025-2026 is
intended to be for the first of 2 years of funding.

(7) The funds allocated in this section are a work project
appropriation, and any unexpended funds for 2025-2026 are carried forward into
2026-2027. The purpose of the work project is to lower class sizes in grades K
to 3. The estimated completion date of the work project is September 30, 2030.

(8) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
31d. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $29,553,400.00 for 2025-2026 for the
purpose of making payments to districts and other eligible entities under this
section.

(2) The amounts allocated from state sources under this
section are used to pay the amount necessary to reimburse districts for 6.0127%
of the necessary costs of the state mandated portion of lunch programs provided
by those districts. The department shall calculate the amount due to each
district under this section using the methods of calculation adopted by the
Michigan supreme court in the consolidated cases known as Durant v State of
Michigan, 456 Mich 175 (1997).

(3) The payments made under this section include all state
payments made to districts so that each district receives at least 6.0127% of
the necessary costs of operating the state mandated portion of the lunch
program in a fiscal year.

(4) The payments made under this section to districts and
other eligible entities that are not required under section 1272a of the
revised school code, MCL 380.1272a, to provide a lunch program must be in an
amount not to exceed $10.00 per eligible pupil plus 5 cents for each free lunch
and 2 cents for each reduced price lunch provided, as determined by the
department.

(5) From the federal funds appropriated in section 11, there
is allocated for 2025-2026 all available federal funding, estimated at
$901,400,000.00 for child nutrition programs and, for 2025-2026, all available
federal funding, estimated at $22,000,000.00, for food distribution programs.

(6) Notwithstanding section 17b, the department shall make
payments to eligible entities other than districts under this section on a
schedule determined by the department.

(7) In purchasing food for a lunch program funded under this
section, a district or other eligible entity shall give preference to food that
is grown or produced by Michigan businesses if it is competitively priced and
of comparable quality.

(8) In addition to the appropriations in section 11, if the
amount allocated in subsection (1) is insufficient to fully reimburse districts
for meals as required under this section, there is appropriated from the school
meals reserve fund created under section 30e the amount necessary to fully fund
these reimbursements.

Sec.
31f. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $16,900,000.00 for 2025-2026 for the
purpose of making payments to districts to reimburse for the cost of providing
breakfast.

(2) The funds allocated under this section for school
breakfast programs are made available to all eligible applicant districts that
meet all of the following criteria:

(a) The district participates in the federal school breakfast
program and meets all standards as prescribed by 7 CFR parts 210, 220, 225,
226, and 245.

(b) Each breakfast eligible for payment meets the federal
standards described in subdivision (a).

(3) The payment for a district under this section is at a per
meal rate equal to the lesser of the district’s actual cost or 100% of the
statewide average cost of a meal served, as determined and approved by the
department, less federal reimbursement, participant payments, and state
breakfast reimbursements received under section 30d. The department shall determine
the statewide average cost using costs as reported in a manner approved by the
department for the preceding school year.

(4) Notwithstanding section 17b, the department may make
payments under this section pursuant to an agreement with the department.

(5) In purchasing food for a school breakfast program funded
under this section, a district shall give preference to food that is grown or
produced by Michigan businesses if it is competitively priced and of comparable
quality.

(6) In addition to the appropriations in section 11, if the
amount allocated in subsection (1) is insufficient to fully reimburse districts
for meals as required under this section, there is appropriated from the school
meals reserve fund created under section 30e the amount necessary to fully fund
these reimbursements.

Sec.
31n. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 for the purposes of this section an amount not to
exceed $106,545,000.00 and from the general fund money appropriated in section
11, there is allocated for 2025-2026 for the purposes of this section an amount
not to exceed $1,300,000.00. The department and the department of health and
human services shall continue a program to distribute this funding to add
licensed behavioral health providers for general education pupils, and
recipients of the funds under subsection (6) shall continue to seek federal
Medicaid match funding for all eligible mental health and support services.

(2) The department and the department of health and human
services shall maintain an advisory council for programs funded under this
section and any other funding under this act to improve or maintain the mental
health of students, except for programs funded under section 31a(7) and (8).
The advisory council shall define goals for implementation of programs, and
shall provide feedback on that implementation. At a minimum, the advisory
council shall consist of representatives of state associations representing
school health, school mental health, school counseling, education, health care,
and other organizations, representatives from the department and the department
of health and human services, and a representative from the school safety and
mental health commission. The department and department of health and human
services, working with the advisory council, shall determine an approach to
increase capacity for mental health and support services in schools for general
education pupils, and shall determine where that increase in capacity qualifies
for federal Medicaid match funding.

(3) The advisory council shall develop a fiduciary agent
checklist for intermediate districts to facilitate development of a plan to
submit to the department and to the department of health and human services.
The department and department of health and human services shall determine the
requirements and format for intermediate districts to submit a plan for
possible funding under subsection (6). The department shall make applications
for funding for this program available to districts and intermediate districts
by not later than December 1 of each fiscal year for which funds are allocated
under this section and shall award the funding by not later than February 1 of
each fiscal year for which funds are allocated under this section.

(4) The department of health and human services shall amend
the state Medicaid plan to obtain appropriate Medicaid waivers as necessary for
the purpose of generating additional Medicaid match funding for school mental
health and support services for general education pupils, and this expansion is
called Caring for Students (C4S).

(5) From the state school aid fund money allocated under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$14,300,000.00 to be distributed to the network of child and adolescent health
centers to place a licensed master’s level behavioral health provider in
schools that do not currently have services available to general education
students. Child and adolescent health centers that are part of the network
described in this subsection shall provide a commitment to maintain services
and implement all available federal Medicaid match methodologies. The
department of health and human services shall use all existing or additional
federal Medicaid match opportunities to maximize funding allocated under this
subsection. The department shall provide funds under this subsection to child
and adolescent health centers that are part of the network described in this
subsection in the same proportion that funding under section 31a(7) is provided
to child and adolescent health centers that are part of the network described
in this subsection and that are located and operating in those districts. A
payment from funding allocated under this subsection must not be paid to an
entity that is not part of the network described in this subsection.

(6) From the state school aid fund money allocated under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$87,245,000.00 to be distributed to intermediate districts for the provision of
mental health and support services to general education students. Recipients of
funds under this subsection shall continue to seek federal Medicaid match
funding for all eligible mental health and support services. If a district or
intermediate district is not able to procure the services of a licensed master’s
level behavioral health provider, the district or intermediate district shall
notify the department and the department of health and human services and, if
the department and department of health and human services verify that the
district or intermediate district attempted to procure services from a master’s
level behavioral health provider and was not able to do so, then the district
or intermediate district may instead procure services from a provider with less
than a master’s degree in behavioral health. To be able to use the exemption in
the immediately preceding sentence, the district or intermediate district must
submit evidence satisfactory to the department and department of health and
human services demonstrating that the district or intermediate district took
measures to procure the services of a licensed master’s level behavioral health
provider but was unable to do so, and the department and department of health
and human services must be able to verify this evidence. From the first $56,173,600.00
of the funds allocated under this subsection, the department shall distribute
up to $1,003,100.00 for 2025-2026 to each intermediate district that submits a
plan approved by the department and the department of health and human services
by February 1 of each fiscal year for which funds are allocated under this
section. The department shall distribute the remaining $31,071,400.00 of the
funds allocated under this subsection for 2025-2026 to intermediate districts
on an equal per-pupil basis based on the combined total number of pupils in
membership in the intermediate district and its constituent districts,
including public school academies that are considered to be constituent
districts under section 705(7) of the revised school code, MCL 380.705. The
department and department of health and human services shall work cooperatively
in providing oversight and assistance to intermediate districts and shall
monitor the program upon implementation. An intermediate district shall use
funds awarded under this subsection to provide funding to its constituent
districts, including public school academies that are considered to be
constituent districts under section 705(7) of the revised school code, MCL 380.705,
for the provision of mental health and support services to general education
students. In addition to the criteria identified under subsection (9), an
intermediate district shall consider geography, cost, or other challenges when
awarding funding to its constituent districts. Districts receiving funding
under this subsection are encouraged to provide suicide prevention and
awareness education and counseling.

(7) If funding awarded to an intermediate district remains
after funds are provided by the intermediate district to its constituent
districts, the intermediate district shall notify the department and department
of health and human services and submit evidence satisfactory to the department
and department of health and human services demonstrating how it would like to
use funds for purposes other than hiring licensed behavioral health providers
for general education pupils. With permission from the department and
department of health and human services, the intermediate district may hire or
contract for experts to provide mental health and support services to general
education students residing within the boundaries of the intermediate district,
including, but not limited to, expanding, hiring, or contracting for staff and
experts to provide those services directly or to increase access to those
services through coordination with outside mental health agencies; the
intermediate district may also contract with 1 or more other intermediate
districts for coordination and the facilitation of activities related to
providing mental health and support services to general education students
residing within the boundaries of the intermediate district; the intermediate
district may also use the funds under this section to create or strengthen
school-based behavioral health assessment teams that focus on providing
age-appropriate interventions, identifying behaviors that suggest a pupil may
be struggling with mental health challenges, providing treatment and support of
the pupil, and using disciplinary interventions and the criminal justice system
as methods of last resort; and the intermediate district may also use the funds
under this section to provide evidence-based trainings that support student
mental health.

(8) If funding awarded to an intermediate district under this
section remains unspent, or if the intermediate district submits an application
requesting a lower allocation than the maximum amount permitted, the
department, in conjunction with the intermediate district, may reallocate the
funds to another intermediate district or other intermediate districts capable
of expending the funds before the funding deadline in accordance with this
section as if those funds were originally allocated to the intermediate
district or intermediate districts to which the funds are being reallocated.

(9) A district requesting funds under this section from the
intermediate district in which it is located shall submit an application for
funding for the provision of mental health and support services to general
education pupils. A district receiving funding from the application process
described in this subsection shall provide services to nonpublic students upon
request. An intermediate district shall not discriminate against an application
submitted by a public school academy simply on the basis of the applicant being
a public school academy. The department shall approve grant applications based
on the following criteria:

(a) The district’s commitment to maintain mental health and
support services delivered by licensed providers into future fiscal years.

(b) The district’s commitment to work with its intermediate
district to use funding it receives under this section that is spent by the
district for general education pupils toward participation in federal Medicaid
match methodologies. A district must provide a local match of at least 20% of
the funding allocated to the district under section 31n.

(c) The district’s commitment to adhere to any local funding
requirements determined by the department and the department of health and
human services.

(d) The extent of the district’s existing partnerships with
community health care providers or the ability of the district to establish
such partnerships.

(e) The district’s documentation of need, including gaps in
current mental health and support services for the general education
population.

(f) The district’s submission of a formal plan of action
identifying the number of schools and students to be served.

(g) Whether the district will participate in ongoing
trainings.

(h) Whether the district will submit an annual report to the
state.

(i) Whether the district demonstrates a willingness to work
with the state to establish program and service delivery benchmarks.

(j) Whether the district has developed a school safety plan
or is in the process of developing a school safety plan.

(k) Any other requirements determined by the department or
the department of health and human services.

(10) Funding under this section, including any federal
Medicaid funds that are generated, must not be used to supplant existing
services.

(11) Both of the following are allocated to the department of
health and human services from the general fund money allocated under
subsection (1):

(a) For 2025-2026, an amount not to exceed $1,000,000.00 for
the purpose of upgrading technology and systems infrastructure and other
administrative requirements to support the programs funded under this section.

(b) For 2025-2026, an amount not to exceed $300,000.00 for
the purpose of administering the programs under this section and working on
generating additional Medicaid funds as a result of programs funded under this
section.

(12) From the state school aid fund money allocated under
subsection (1), there is allocated for 2025-2026 an amount not to exceed
$5,000,000.00 to intermediate districts on an equal per intermediate district
basis for the purpose of administering programs funded under this section.
Recipients of the funds under this subsection shall continue to seek federal
Medicaid match funding for all eligible mental health and support services and
participate in all learning collaboratives about C4S required by the department
and department of health and human services.

(13) The department and the department of health and human
services shall work with the advisory council to develop proposed measurements
of outcomes and performance. Those measurements must include, at a minimum, the
number of pupils served, the number of schools served, and where those pupils
and schools were located. The department and the department of health and human
services shall compile data necessary to measure outcomes and performance, and
districts and intermediate districts receiving funding under this section shall
provide data requested by the department and department of health and human
services for the measurement of outcomes and performance. The department and
department of health and human services shall provide an annual report by not later
than December 1 of each year to the house and senate appropriations
subcommittees on school aid and health and human services, to the house and
senate fiscal agencies, and to the state budget director. At a minimum, the
report must include measurements of outcomes and performance, proposals to
increase efficacy and usefulness, proposals to increase performance, and
proposals to expand coverage.

(14) A district or intermediate district that receives
funding directly or indirectly under this section may carry over any unexpended
funds received under this section for up to 2 fiscal years beyond the fiscal
year in which the funds were received.

Sec. 31aa. (1) From the state school aid fund money appropriated in
section 11, there is allocated $300,000,000.00 for 2025-2026 only, and from the
general fund money appropriated in section 11, there is allocated
$21,000,000.00 for 2025-2026 only, to support school safety and mental health.

(2) From the state school aid fund money allocated in
subsection (1), an amount not to exceed $200,000,000.00, and from the general
fund money allocated in subsection (1), an amount not to exceed $14,000,000.00
may be used to provide payments to districts, intermediate districts, nonpublic
schools, and the Michigan Schools for the Deaf and Blind that opt in and agree
to receive funding under this subsection, for activities to improve student
mental health and improve student safety. The allowable expenditures of funds
under this subsection are as follows:

(a) Hiring or contracting for support staff for student
mental health needs, including, but not limited to, school psychologists,
social workers, counselors, and school nurses.

(b) Purchasing and implementing mental health screening
tools.

(c) Purchasing a statewide, integrated technology platform
that streamlines behavioral health documentation and care coordination.

(d) Providing school-based mental health personnel access to
consultation with behavioral health clinicians to respond to complex student
mental health needs.

(e) Purchasing and implementing an online behavioral health
tool moderated and led by licensed behavioral health professionals.

(f) Hiring or contracting a behavioral health coordinator.

(g) Evidence-based trainings to support mental health.

(h) Costs associated with collaboration between school
employees, families, and community partners to address the academic,
behavioral, and social needs of all students through collaborative
partnerships, resource coordination, data collection, and data sharing.

(i) Costs associated with conducting a systematic school
mental health needs assessment and resource mapping that identifies
programmatic and systemic needs and helps staff determine priorities and create
action plans.

(j) Coordination with local law enforcement.

(k) Training for school staff on threat assessment.

(l) Training for school staff and students
on threat response.

(m) Training for school staff on crisis communication.

(n) Safety infrastructure, including, but not limited to,
cameras, door blocks, hardened vestibules, window screening, and technology
necessary to operate buzzer systems. This may also include firearm detection
software that integrates to existing security cameras to detect and alert
school personnel and first responders to visible firearms on school property.

(o) Age-appropriate training for students and families on
responsible firearm ownership, including safe handling and safe storage of
firearms.

(p) School resource officers and safety dogs. School
resource officers hired under this subsection must be properly licensed and in
good standing with the Michigan commission on law enforcement standards, and
must be in compliance with all applicable laws.

(q) Student Safety Management System, the information
technology platform and related services to improve student safety by
mitigating cyberbullying, school violence, human trafficking, and self-harm
that supports students from grades K to 12.

(r) A secure platform, administered by the department of
state police, for school officials, emergency responders, and emergency
management coordinators to house all school safety-related items, including,
but not limited to, EOP templates, EOP guidance, reference documents, and
security assessments. The platform should use existing password-protected
access control methods schools currently utilize and, to the extent possible,
be capable of integrating with existing platforms or technologies used by districts
for school safety. Through permissions-based access control, the platform
should be able to relay information clearly and in real time to each person or
entity necessary to provide a unified response to a safety incident, or to take
appropriate action in response to an anticipated disruption to the normal
functions of the surrounding community.

(s) Emergency infrastructure needs to respond to an immediate
threat to the health or safety of students and staff in the district,
intermediate district, nonpublic school, or the Michigan Schools for the Deaf
and Blind. A district, intermediate district, nonpublic school, or the Michigan
Schools for the Deaf and Blind shall not expend funds for this purpose without
first obtaining approval from the department. In making a determination of
approval, the department shall, at a minimum, assess whether the district,
intermediate district, nonpublic school, or the Michigan Schools for the Deaf
and Blind is responding to an immediate threat to the health or safety of
students and staff, and whether the district, intermediate district, nonpublic
school, or the Michigan Schools for the Deaf and Blind has other sources of
funding that should be utilized first.

(t) A contract with a vendor for a comprehensive safety and
security assessment or a comprehensive safety and security event assessment in
schools operated by the district, intermediate district, nonpublic school, or
the Michigan Schools for the Deaf and Blind.

(u) An emergency response system.

(v) Implementing cell phone free school policies. As used in
this subdivision, “cell phone free school policy” means a policy that prohibits
students from accessing or using a personal communication device capable of
telecommunication or digital communication during instructional time, as
determined by the school.

(3) By not later than December 31 of each fiscal year, from
the state school aid fund money allocated in subsection (1), the department
shall make payments to districts, intermediate districts, and the Michigan
Schools for the Deaf and Blind that opt in and agree to receive funding in an
equal amount per pupil based on the total number of pupils in membership in
each district, intermediate district, and the Michigan Schools for the Deaf and
Blind that opts in and agrees to receive funding. By December 31 of each fiscal
year, from the general fund money allocated in subsection (2), the department
shall make payments to nonpublic schools that opt in and agree to receive
funding in an equal amount per pupil based on the total number of pupils in
membership in each nonpublic school that opts in and agrees to receive funding,
using pupil counts determined by the department. The department shall ensure
that the amount per pupil paid to nonpublic schools does not exceed the amount
per pupil paid to districts and intermediate districts. Districts, intermediate
districts, the Michigan Schools for the Deaf and Blind, and nonpublic schools may
opt in and agree to receive funding in a form and manner determined by the
department.

(4) From the state school aid fund money allocated in
subsection (1), there is allocated an amount not to exceed $50,000,000.00, and
from the general fund money allocated in subsection (1), there is allocated an
amount not to exceed $3,500,000.00 for competitive grants to districts,
intermediate districts, and nonpublic schools for school resource officers and
safety dogs. To receive funding under this subsection, a district, intermediate
district, or nonpublic school must apply for funding to the department in a
form and manner prescribed by the department. The department shall prioritize
applicants who include a spending plan to sustain salaries after grant funding
has concluded. Recipients of funding under this subsection shall ensure that
any school resource officer hired with these funds has completed training by
the Michigan commission on law enforcement standards.

(5) From the state school aid fund money allocated in
subsection (1), there is allocated an amount not to exceed $50,000,000.00 and
from the general fund money allocated in subsection (1), there is allocated an
amount not to exceed $3,500,000.00 for competitive grants to districts,
intermediate districts, and nonpublic schools to hire or contract for support
staff for student mental health needs, including, but not limited to, school
psychologists, social workers, and counselors. To receive funding under this
subsection, a district, intermediate district, or nonpublic school must apply
for funding to the department in a form and manner prescribed by the
department. The department shall prioritize applicants that include a spending
plan to sustain salaries after grant funding has concluded.

(6) Recipients of funding under this section must provide a final expense
report to the department by July 1 of each fiscal year. If the department
determines that the eligible recipient has misused the funds allocated under this
section, the eligible recipient
shall reimburse the department for the amount of state funding misused.

(7) The department shall use the information received under
subsection (6) to compile a report that includes the number of recipients that
have hired school resource officers using funds received under this section and any supporting information
provided by the recipients. By not later than August 1 of each year, the
department shall provide the report compiled under this subsection to the
senate and house appropriations subcommittees on school aid, the senate and house
fiscal agencies, the senate and house policy offices, the state budget office,
and the Michigan commission on law enforcement standards.

(8) Districts receiving funds under this section must
coordinate with intermediate districts to avoid duplication of services and to
streamline delivery of services to students.

(9) To receive funding under this section, a district, an
intermediate district, a nonpublic school, or the Michigan Schools for the Deaf
and Blind must agree to be subject to a comprehensive investigation, must
affirmatively agree to waive any privilege that may otherwise protect
information from disclosure in the event of a mass casualty event, and must
agree to comply with a comprehensive investigation. All of the following apply
to a comprehensive investigation described in this subsection:

(a) The comprehensive investigation will assess the
circumstances surrounding the mass casualty event, including, but not limited
to:

(i) Emergency response effectiveness.

(ii) Compliance with safety protocols.

(iii) Communication procedures.

(iv) Any factors contributing to the
incident.

(b) The governor shall designate an appropriate person or
investigative entity to conduct the comprehensive investigation. This person or
investigative entity may include, but is not limited to, state law enforcement
agencies, independent review boards, or specially appointed task forces. The
person or designated investigative entity has the authority to do all of the
following:

(i) Access relevant records and data from
the district.

(ii) Interview witnesses and district
personnel involved.

(iii) Issue findings and recommendations based
on the investigation.

(c) The person or investigative entity designated in
subdivision (b) shall prepare a detailed report of its findings and submit the
report to the governor and relevant legislative committees within 90 days
following the conclusion of the investigation. The report must include
recommendations for preventing future incidents and improving school safety
protocols.

(10)
Funds allocated under subsection (4) for 2025-2026 are a work project
appropriation, and any unexpended funds for 2025-2026 are carried forward into
2026-2027. The purpose of the work project is to continue providing funding to
support districts, intermediate districts, and nonpublic schools in having
school resource officers. The estimated completion date of the work project is
September 30, 2029.

(11)
Funds allocated under subsection (5) for 2025-2026 are a work project
appropriation, and any unexpended funds for 2025-2026 are carried forward into 2026-2027.
The purpose of the work project is to continue providing funding to support
districts, intermediate districts, and nonpublic schools in hiring staff to
support student mental health. The estimated completion date of the work
project is September 30, 2029.

(12) As used in this section:

(a) “Mass casualty event” means any of the following that
occur on school grounds or at a school-sponsored event:

(i) An incident resulting in significant
injuries to not fewer than 3 individuals.

(ii) An incident resulting in fatalities.

(iii) An incident that exceeds the normal
resources for emergency response available in the jurisdiction where the
incident takes place.

(iv) An incident that results in a sudden and
timely surge of injured individuals necessitating emergency services.

(b) “Safety dog” means a dog that is contracted by a law
enforcement agency of this state, a local unit of government of this state, or
a district or an intermediate district and that is trained for detection of
firearms, explosives, narcotics, or vape substances.

(c) “School grounds” means all properties owned or operated
by the district, including transportation vehicles owned or operated by the
district.

(d) “School-sponsored event” means any activity organized or
sanctioned by the district.

(13) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
32d. (1) From the state school aid fund money appropriated in section 11, there
is allocated to eligible intermediate districts and consortia of intermediate
districts for great start readiness programs an amount not to exceed
$609,720,000.00 for 2024-2025 and $638,217,600.00 for 2025-2026. From the general fund money appropriated
under section 11, there is allocated $600,000.00 for 2024-2025 and $350,000.00
for 2025-2026, and from the great start readiness reserve fund money
appropriated in section 11, there is allocated $18,000,000.00 for
2024-2025 and 2025-2026 for the purposes of this section. For 2024-2025, an
intermediate district or consortium shall use funds allocated under this
section for great start readiness programs to provide part-day programs,
school-day programs, GSRP extended programs, GSRP/Head Start school-day blended
programs, or GSRP/Head Start extended blended programs that are comprehensive,
free, compensatory classroom programs designed to improve the readiness and
subsequent achievement of children who meet the participant eligibility and
prioritization guidelines as defined by the department of lifelong education,
advancement, and potential. For 2025-2026, an intermediate district or
consortium shall use funds allocated under this section for eligible great
start readiness program options. For a child to be eligible to participate in a
program under this section, the child must be at least 4, but less than 5,
years of age as of September 1 of the school year in which the program is
offered and must meet those eligibility and prioritization guidelines. After
eligible children who will be 4 years of age as of September 1 are enrolled, a
child who is not 4 years of age as of September 1, but who will be 4 years of
age by not later than December 1, is eligible to participate if both of the
following are met:

(a) The child’s parent or legal guardian seeks a waiver from
the September 1 eligibility date by submitting a request for enrollment in a
program to the responsible intermediate district.

(b) The child meets eligibility and prioritization
guidelines.

(2) From the state school aid fund money allocated under
subsection (1), an amount not to exceed $597,720,000.00 for 2024-2025 and
$626,217,600.00 for 2025-2026 is allocated to intermediate districts or
consortia of intermediate districts based on the formula in section 39. An
intermediate district or consortium of intermediate districts receiving funding
under this section shall act as the fiduciary for the great start readiness
programs. An intermediate district or consortium of intermediate districts receiving
funding under this section may collaborate with local governments to identify
children eligible for programs funded under this section and may contract with
local governments to provide services. To be eligible to receive funds
allocated under this subsection from an intermediate district or consortium of
intermediate districts, a district, a consortium of districts, a local
government, or a public or private for-profit or nonprofit legal entity or
agency must comply with this section and section 39. For 2024-2025, if, due to
the number of GSRP extended program or GSRP/Head Start extended blended program
slots awarded, the amount allocated in this subsection is insufficient to award
at least the same number of part-day program and school-day program slots as
awarded in the immediately preceding fiscal year, there is appropriated from
the great start readiness program reserve fund the amount necessary to fully
award the same number of part-day program and full-day program slots as awarded
in the immediately preceding fiscal year. For 2025-2026, if the amount
allocated in this subsection is insufficient to fully fund allocations
calculated under section 39, there is appropriated from the great start
readiness program reserve fund the amount necessary and available to fully fund
those allocations.

(3) From the general fund money allocated under subsection
(1), there is allocated an amount not to exceed $600,000.00 for 2024-2025 and
an amount not to exceed $350,000.00 for 2025-2026 for a competitive grant to
continue a longitudinal evaluation of children who have participated in great
start readiness programs.

(4) Except as otherwise provided in subsection (5), to be
eligible for funding under this section, a program must prepare children for
success in school through comprehensive part-day programs, school-day programs,
GSRP extended programs, GSRP/Head Start school-day blended programs, GSRP/Head
Start extended blended programs, or other eligible great start readiness
program options that contain all of the following program components, as
determined by the department of lifelong education, advancement, and potential:

(a) Participation in a collaborative recruitment and
enrollment process to ensure that each child is enrolled in the program most
appropriate to the child’s needs and to maximize the use of federal, state, and
local funds. For 2025-2026, as part of this requirement, programs
receiving funding under this section must provide current enrollment data,
including slots open for enrollment and slots filled, to the intermediate
district or consortium of intermediate districts from which funding is received
for that program. The enrollment process must ensure that children in families
with lower income and children with other risk factors, as determined by the
department of lifelong education, advancement, and potential, are enrolled
before children with lesser needs.

(b) An age-appropriate educational curriculum that is in
compliance with the early childhood standards of quality for birth to
kindergarten children adopted by the state board, including, at least, the
Connect4Learning curriculum.

(c) Nutritional services for all program participants
supported by federal, state, and local resources as applicable.

(d) Physical and dental health and developmental screening
services for all program participants.

(e) Referral services for families of program participants to
community social service agencies, including mental health services, as
appropriate.

(f) Active and continuous involvement of the parents or
guardians of the program participants.

(g) A plan to conduct and report annual great start readiness
program evaluations and continuous improvement plans using criteria approved by
the department of lifelong education, advancement, and potential.

(h) Participation in a school readiness advisory committee
convened as a workgroup of the great start collaborative that provides for the
involvement of classroom teachers, parents or guardians of program
participants, and community, volunteer, and social service agencies and
organizations, as appropriate. The advisory committee shall annually review and
make recommendations regarding the program components listed in this
subsection. The advisory committee also shall make recommendations to the great
start collaborative regarding other community services designed to improve all
children’s school readiness.

(i) The ongoing articulation of the kindergarten and first
grade programs offered by the program provider.

(j) Participation in this state’s great start to quality
process with a level of at least enhancing quality level.

(5) To help expand access to great start readiness programs,
the department of lifelong education, advancement, and potential may waive the
requirements under subsections (4) and (8)(c) and a program may be eligible for
funding under this section for new or expanding programs if the program
demonstrates to the satisfaction of the department of lifelong education,
advancement, and potential that the program meets all of the following:

(a) Is a licensed group or child care center or is a licensed
program.

(b) Provides the minimum instructional time as required by
the department of lifelong education, advancement, and potential.

(c) Participates in this state’s quality improvement system
at a level determined by the department of lifelong education, advancement, and
potential.

(d) Implements a professional educator preparation plan, as
defined by the department of lifelong education, advancement, and potential,
for educators not meeting teacher credentialing standards described in
subsection (8) or (9).

(e) Uses a developmentally appropriate curriculum, as
determined by the department of lifelong education, advancement, and potential.

(f) Conducts a developmental screening and referral process,
as determined by the department of lifelong education, advancement, and
potential.

(g) Commits to participating in program financial review and
monitoring, as determined by the department of lifelong education, advancement,
and potential.

(h) Provides a plan to implement an approved great start
readiness program curriculum and meet additional great start readiness program
standards, as determined by the department of lifelong education, advancement,
and potential.

(6) A waiver under subsection (5) may be granted for up to 3
years for requirements related to program credentialing and may be granted for
up to 2 years for all other requirements, as determined by the department of
lifelong education, advancement, and potential.

(7) The department of lifelong education, advancement, and
potential shall provide a report to the house and senate appropriations
subcommittees on school aid, the state budget director, and the house and
senate fiscal agencies that summarizes the number and types of exemptions
granted under subsection (5) and progress made by programs granted waivers
under subsection (5) by September 30 of each fiscal year. It is the intent of
the legislature to review the waiver allowability under subsection (5) before
the fiscal year ending September 30, 2027.

(8) For applications submitted before September 30, 2025, an
application for funding under this section must provide for the following, in a
form and manner determined by the department of lifelong education,
advancement, and potential:

(a) Ensure either of the following:

(i) That the applicant complies with all
program components described in subsection (4).

(ii) That the applicant meets the
requirements of a waiver under subsection (5).

(b) Except as otherwise provided in this subdivision, ensure
that children participating in an eligible great start readiness program for
whom the intermediate district is receiving funds under this section are
children who live with families with a household income that is equal to or
less than 400% of the federal poverty guidelines. If the intermediate district
determines that all eligible children are being served and that there are no
children on the waiting list who live with families with a household income
that is equal to or less than 400% of the federal poverty guidelines, the
intermediate district may then enroll children who live with families with a
household income that is greater than 400% of the federal poverty guidelines.
The enrollment process must consider income and risk factors, such that
children determined with higher need are enrolled before children with lesser
need. For purposes of this subdivision, all age-eligible children served in
foster care or who are experiencing homelessness or who have individualized
education programs recommending placement in an inclusive preschool setting are
considered to live with families with household income equal to or less than
400% of the federal poverty guidelines regardless of actual family income and
are prioritized for enrollment within the lowest quintile. The department of
lifelong education, advancement, and potential shall publish the household
income thresholds under this subdivision in a clear manner on its website and
the great start to quality website.

(c) Except as provided in subsection (5), ensure that the
applicant only uses qualified personnel for this program, as follows:

(i) Teachers possessing proper training. A
lead teacher must have a valid Michigan teaching certificate with an early
childhood or lower elementary endorsement or a bachelor’s or higher degree in
child development or early childhood education with specialization in preschool
teaching. However, except as otherwise provided in this subparagraph, if an
applicant demonstrates to the department of lifelong education, advancement,
and potential that it is unable to fully comply with this subparagraph after
making reasonable efforts to comply, teachers or paraprofessionals with at
least 5 years of experience as a paraprofessional in a great start readiness
program, Head Start, or licensed child care center classroom who have
significant but incomplete training in early childhood education or child
development may be used if the applicant provides to the department of lifelong
education, advancement, and potential, and the department of lifelong
education, advancement, and potential approves, a plan for each teacher to come
into compliance with the standards in this subparagraph. Individuals may
qualify with at least 3 years of experience and significant training in early
childhood education or child development, based on the recommendation of the
intermediate district after a classroom observation. A teacher’s compliance
plan must be completed within 3 years of the date of employment. Progress
toward completion of the compliance plan consists of at least 2 courses per
calendar year.

(ii) Paraprofessionals possessing proper
training in early childhood education, including an associate degree in early
childhood education or child development or the equivalent, or a child
development associate (CDA) credential. However, if an applicant demonstrates
to the department of lifelong education, advancement, and potential that it is
unable to fully comply with this subparagraph after making reasonable efforts
to comply, the applicant may use paraprofessionals who have completed at least
1 course that earns college credit in early childhood education or child
development or enroll in a child development associate credential with at least
6 months of verified experience in early education and care, if the
applicant provides to the department of lifelong education, advancement, and
potential, and the department of lifelong education, advancement, and potential
approves, a plan for each paraprofessional to come into compliance with the
standards in this subparagraph. A paraprofessional’s compliance plan must be
completed within 3 years of the date of employment. Progress toward completion
of the compliance plan consists of at least 2 courses, 60 clock hours, or an
equivalent of training per calendar year.

(d) Include a program budget that contains only those costs
that are not reimbursed or reimbursable by federal funding, that are clearly
and directly attributable to the great start readiness program, and that would
not be incurred if the program were not being offered. Eligible costs include
transportation costs. The program budget must indicate the extent to which
these funds will supplement other federal, state, local, or private funds. An
applicant shall not use funds received under this section to supplant any
federal funds received by the applicant to serve children eligible for a
federally funded preschool program that has the capacity to serve those
children.

(9) Beginning in 2025-2026, applications for funding under
this section must be submitted to the department of lifelong education,
advancement, and potential in a form and manner determined by the department of
lifelong education, advancement, and potential. The application must
demonstrate, at a minimum, compliance with program requirements described in
subsection (4) or (5) and must ensure that recipients will only utilize
qualified personnel, as determined by the department of lifelong education, advancement,
and potential, for eligible great start readiness program options.

(10) For a grant recipient that enrolls pupils in a
school-day program or GSRP extended program funded under this section, each
child enrolled in the school-day program or GSRP extended program is counted as
described in section 39 for purposes of determining the amount of the grant
award. This subsection does not apply after September 30, 2025.

(11) For a grant recipient that enrolls pupils in an eligible
great start readiness program option that blends GSRP and Head Start
programming, the grant recipient shall ensure that all Head Start and GSRP
policies and regulations are applied to the blended slots, with adherence to
the highest standard from either program, to the extent allowable under federal
law. A grant recipient may request a waiver from the department of lifelong
education, advancement, and potential to align GSRP policies and regulations
with Head Start national standards for quality, including ratios, and the
department of lifelong education, advancement, and potential may approve the
waiver. Not later than March 1 of each year, the department of lifelong
education, advancement, and potential will report to the legislature and post
on a publicly available website a list by intermediate district or consortium
with the number and type of each waiver requested and approved.

(12) To help expand access to great start readiness programs,
the department of lifelong education, advancement, and potential may allow
great start readiness programs to implement Head Start national performance
standards for quality as an alternative to great start readiness program
policies and regulations if the great start readiness program demonstrates to
the satisfaction of the department of lifelong education, advancement, and
potential that the great start readiness program is meeting the requirements of
the Head Start national performance standards.

(13) Beginning in 2025-2026, an intermediate district or
consortia of intermediate districts receiving funding under this section must
publish, on an easily accessible website, a data dashboard containing the
number of allocations requested from the state, a list of programs offering
great start readiness programs in their boundaries, and current enrollment data
for each subrecipient, including total slots open for enrollment, slots filled,
and waitlist information, if applicable. A link to this website must be
provided to families on waitlists for any great start readiness program in
their boundaries.

(14) An intermediate district or consortium of intermediate
districts receiving a grant under this section shall designate an early
childhood coordinator, and may provide services directly or may contract with 1
or more districts or public or private for-profit or nonprofit providers that
meet all requirements of subsection (4), (8), or (9), as applicable.

(15) An intermediate district or consortium of intermediate
districts may retain for administrative services provided by the intermediate
district or consortium of intermediate districts an amount not to exceed 4% of
the grant amount. Expenses incurred by subrecipients engaged by the
intermediate district or consortium of intermediate districts for directly
running portions of the program are considered program costs or a contracted
program fee for service. Subrecipients operating early childhood programs may
include indirect costs, not to exceed the federal de minimis.

(16) An intermediate district or consortium of intermediate
districts may expend not more than 2% of the total grant amount for outreach,
recruiting, and public awareness of the program, if the intermediate district
or consortium of intermediate districts also participates in related statewide
marketing and outreach efforts.

(17) Each grant recipient shall enroll children identified
under subsection (8)(b) according to how far the child’s household income is
below 400% of the federal poverty guidelines by ranking each applicant child’s
household income from lowest to highest and dividing the applicant children
into quintiles based on how far the child’s household income is below 400% of
the federal poverty guidelines, and then enrolling children in the quintile
with the lowest household income before enrolling children in the quintile with
the next lowest household income until slots are completely filled. If the
grant recipient determines that all eligible children are being served and that
there are no children on the waiting list who live with families with a
household income that is equal to or less than 400% of the federal poverty
guidelines, the grant recipient may then enroll children who live with families
with a household income that is greater than 400% of the federal poverty
guidelines. The enrollment process must consider income and risk factors, such
that children determined with higher need are enrolled before children with
lesser need. For purposes of this subsection, all age-eligible children served
in foster care or who are experiencing homelessness or who have individualized
education programs recommending placement in an inclusive preschool setting are
considered to live with families with household income equal to or less than
400% of the federal poverty guidelines regardless of actual family income and
are prioritized for enrollment within the lowest quintile. This subsection does
not apply after September 30, 2025.

(18) An intermediate district or consortium of intermediate
districts receiving a grant under this section shall allow parents of eligible
children who are residents of the intermediate district or within the
consortium to choose a program operated by or contracted with another
intermediate district or consortium of intermediate districts and shall enter
into a written agreement regarding payment, in a manner prescribed by the
department of lifelong education, advancement, and potential.

(19) An intermediate district or consortium of intermediate
districts receiving a grant under this section shall conduct a local process to
contract with interested and eligible public and private for-profit and
nonprofit community-based providers that meet all requirements of subsection
(4) for at least 30% of its total allocation. For 2024-2025, for the purposes
of this 30% allocation, an intermediate district or consortium of intermediate
districts may count children served by a Head Start grantee or delegate in a
GSRP/Head Start school-day blended program, GSRP/Head Start extended blended
program, GSRP extended program, and great start readiness school-day program.
Children served in a program funded only through Head Start are not counted
toward this 30% allocation. Beginning in 2025-2026, the department of lifelong
education, advancement, and potential shall provide guidance to intermediate
districts and consortia of intermediate districts on counting children served
by Head Start programming for the purposes of this 30% allocation. For
2024-2025, an intermediate district or consortium shall report to the
department of lifelong education, advancement, and potential, in a manner
prescribed by the department of lifelong education, advancement, and potential,
a detailed list of community-based providers by provider type, including
private for-profit, private nonprofit, community college or university, Head
Start grantee or delegate, and district or intermediate district, and the
number and proportion of its total allocation allocated to each provider as
subrecipient. Beginning in 2025-2026, an intermediate district or consortium
shall report to the department of lifelong education, advancement, and
potential, in a manner prescribed by the department of lifelong education,
advancement, and potential, information necessary for the department of
lifelong education, advancement, and potential to determine the intermediate
district’s or consortium of intermediate districts’ compliance with this
subsection. If the intermediate district or consortium is not able to contract
for at least 30% of its total allocation, the intermediate district or
consortium shall notify the department of lifelong education, advancement, and
potential and, if the department of lifelong education, advancement, and
potential verifies that the intermediate district or consortium attempted to
contract for at least 30% of its total allocation and was not able to do so,
the intermediate district or consortium may retain and use all of its
allocation as provided under this section. To be able to use this exemption,
the intermediate district or consortium shall demonstrate to the department of
lifelong education, advancement, and potential that the intermediate district
or consortium increased the percentage of its total allocation for which it
contracts with a community-based provider and the intermediate district or
consortium shall submit evidence satisfactory to the department of lifelong
education, advancement, and potential, and the department of lifelong
education, advancement, and potential must be able to verify this evidence,
demonstrating that the intermediate district or consortium took measures to
contract for at least 30% of its total allocation as required under this
subsection, including, but not limited to, at least all of the following
measures:

(a) The intermediate district or consortium notified each
nonparticipating licensed child care center located in the service area of the
intermediate district or consortium regarding the center’s eligibility to
participate, in a manner prescribed by the department of lifelong education,
advancement, and potential.

(b) The intermediate district or consortium provided to each
nonparticipating licensed child care center located in the service area of the
intermediate district or consortium information regarding great start readiness
program requirements and a description of the application and selection process
for community-based providers.

(c) The intermediate district or consortium provided to the
public and to participating families a list of community-based great start
readiness program subrecipients with a great start to quality level of at least
enhancing quality level.

(20) If an intermediate district or consortium of
intermediate districts receiving a grant under this section fails to submit
satisfactory evidence to demonstrate its effort to contract for at least 30% of
its total allocation, as required under subsection (19), the department of
lifelong education, advancement, and potential may reduce the allocation to the
intermediate district or consortium by a percentage equal to the difference
between the percentage of an intermediate district’s or consortium’s total allocation
awarded to community-based providers and 30% of its total allocation.

(21) To assist intermediate districts and consortia in
complying with the requirement to contract with community-based providers, for
at least 30% of their total allocation, the department of lifelong education,
advancement, and potential shall do all of the following:

(a) Ensure that a great start resource center or the
department of lifelong education, advancement, and potential provides each
intermediate district or consortium receiving a grant under this section with
the contact information for each licensed child care center located in the
service area of the intermediate district or consortium by March 1 of each
year.

(b) Provide, or ensure that an organization with which the
department of lifelong education, advancement, and potential contracts
provides, a community-based provider with a validated great start to quality
rating within 90 days of the provider’s having submitted a request and
self-assessment. This subdivision does not apply after September 30, 2025.

(c) Ensure that all intermediate district, district,
community college or university, Head Start grantee or delegate, private
for-profit, and private nonprofit providers are subject to a single great start
to quality continuous quality improvement system. The continuous quality
improvement system must ensure that regulators process all prospective
providers at the same pace on a first-come, first-served basis and must not
allow 1 type of provider to receive a great start to quality level ahead of any
other type of provider.

(d) By not later than March 1 of each year, compile the
results of the information reported by each intermediate district or consortium
under subsection (19) and report to the legislature and post on a publicly
available website a list by intermediate district or consortium with the number
and percentage of each intermediate district’s or consortium’s total allocation
allocated to community-based providers by provider type, including private
for-profit, private nonprofit, community college or university, Head Start
grantee or delegate, and district or intermediate district.

(e) Allow intermediate districts and consortia and eligible
community-based providers to utilize materials and supplies purchased for great
start readiness programs within their facilities for other early care and
education activities, in the following order of priority:

(i) Early care and education activities
under a federal award.

(ii) Early care and education activities
under other state awards.

(iii) Early care and education activities
under local or regional awards.

(22) A recipient of funds under this section shall report to
the center in a form and manner prescribed by the center the information
necessary to derive the number of children participating in the program, the
number of eligible children not participating in the program and on a waitlist,
and the total number of children participating in the program by various
demographic groups and eligibility factors necessary to analyze equitable and
priority access to services for the purposes of subsection (3).

(23) As used in this section:

(a) “Child care center” means that term as defined in section
1 of 1973 PA 116, MCL 722.111.

(b) “Eligible great start readiness program options” means a
program option that operates on a school-day, part-day, or extended schedule
length, as determined by the department of lifelong education, advancement, and
potential. The department of lifelong education, advancement, and potential
must maintain and publish on its website requirements for each eligible
schedule length, including the minimum day length, the minimum number of days
per week, and the minimum number of weeks per year. These programs may be
blended with Head Start programs, if allowable by federal rules and
regulations.

(c) “Federal poverty guidelines” means the guidelines
published annually in the Federal Register by the United States Department
of Health and Human Services under its authority to revise the poverty line
under 42 USC 9902.

(d) “GSRP extended program” means a program that operates for
at least the same length of day as a district’s first grade program for a
minimum of 5 days per week, 36 weeks per year.

(e) “GSRP/Head Start extended blended program” means a
program funded under this section and a Head Start program that are combined
for an extended program.

(f) “GSRP/Head Start school-day blended program” means a
part-day program funded under this section and a Head Start program, which are
combined for a school-day program.

(g) “Licensed child care center” means a child care center
that has been issued a license under 1973 PA 116, MCL 722.111 to 722.128, to
operate a child care center.

(h) “Part-day program” means a program that operates at least
4 days per week, 30 weeks per year, for at least 3 hours of teacher-child
contact time per day but for fewer hours of teacher-child contact time per day
than a school-day program.

(i) “School-day program” means a program that operates for at
least the same length of day as a district’s first grade program for a minimum
of 4 days per week, 30 weeks per year. A classroom that offers a school-day
program must enroll all children for the school day to be considered a
school-day program.

(24) From the state school aid fund money allocated in
subsection (1), there is allocated for 2024-2025 and 2025-2026 an amount not to
exceed $10,000,000.00 and, from the great start readiness program reserve fund
money allocated in subsection (1), there is allocated for 2024-2025 and
2025-2026 an amount not to exceed $18,000,000.00 for reimbursement of
transportation costs for children attending great start readiness programs
funded under this section. To receive reimbursement under this subsection, by
not later than November 1 of each year, a program funded under this section
that provides transportation shall submit to the intermediate district that is
the fiscal agent for the program a projected transportation budget. The amount
of the reimbursement for transportation under this subsection is no more than
the projected transportation budget or $500.00 multiplied by the number of
children funded for the program under this section. If the amount allocated
under this subsection is insufficient to fully reimburse the transportation
costs for all programs that provide transportation and submit the required
information, the department of lifelong education, advancement, and potential
shall prorate the reimbursement in an equal amount per child funded. The
department of lifelong education, advancement, and potential shall make
payments to the intermediate district that is the fiscal agent for each
program, and the intermediate district shall then reimburse the program
provider for transportation costs as prescribed under this subsection.

(25) For 2024-2025, subject to, and from the funds allocated
under, subsection (24), the department of lifelong education, advancement, and
potential shall reimburse a program for transportation costs related to parent-
or guardian-accompanied transportation provided by transportation service
companies, buses, or other public transportation services. Beginning in
2025-2026, subject to, and from the funds allocated under, subsection (24), the
department of lifelong education, advancement, and potential shall allow
programs to utilize those funds for costs related to parent- or
guardian-provided transportation and for costs related to parent- or
guardian-accompanied transportation provided by transportation service
companies, buses, or other public transportation services. For payments related
to parent- or guardian-provided transportation, the department of lifelong
education, advancement, and potential shall develop parameters to ensure
dollars are utilized in a way that improves access to eligible great start
readiness program options for low-income and geographically isolated families.
To be eligible for reimbursement under this subsection in 2024-2025, and to
utilize funding under this subsection in 2025-2026, a program must submit to
the intermediate district or consortia of intermediate districts all of the
following:

(a) The names of families provided with transportation
support along with a documented reason for the need for transportation support
and the type of transportation provided.

(b) Financial documentation of actual transportation costs
incurred by the program, including, but not limited to, receipts and mileage
reports, as determined by the department of lifelong education, advancement,
and potential.

(c) Any other documentation or information determined
necessary by the department of lifelong education, advancement, and potential.

(26) The department of lifelong education, advancement, and
potential shall implement a process to review and approve age-appropriate
comprehensive classroom level quality assessments for GSRP grantees that
support the early childhood standards of quality for birth to kindergarten
children adopted by the state board. The department of lifelong education,
advancement, and potential shall make available to intermediate districts at
least 2 classroom level quality assessments that have been approved by the department
of lifelong education, advancement, and potential.

(27) An intermediate district that is a GSRP grantee may
approve the use of a supplemental curriculum that aligns with and enhances the
age-appropriate educational curriculum in the classroom. If the department of
lifelong education, advancement, and potential objects to the use of a
supplemental curriculum approved by an intermediate district, the director of
the department of lifelong education, advancement, and potential shall
establish a review committee independent of the department of lifelong education,
advancement, and potential. The review committee shall meet within 60 days of
the department of lifelong education, advancement, and potential registering
its objection in writing and provide a final determination on the validity of
the objection within 60 days of the review committee’s first meeting.

(28) The department of lifelong education, advancement, and
potential shall implement a process to evaluate and approve age-appropriate
educational curricula that are in compliance with the early childhood standards
of quality for birth to kindergarten children adopted by the state board.

(29) From the state school aid fund money allocated under
subsection (1), there is allocated for 2024-2025 and 2025-2026 an amount not to
exceed $2,000,000.00 for payments to intermediate districts or consortia of
intermediate districts for professional development and training materials for
educators in programs implementing new curricula or child assessment tools
approved for use in the great start readiness program.

(30) A great start readiness program, a GSRP extended
program, a GSRP/Head Start school-day blended program, a GSRP/Head Start
extended blended program, or other eligible great start readiness programs
funded under this section are permitted to utilize AmeriCorps Pre-K Reading
Corps members in classrooms implementing research-based early literacy
intervention strategies.

(31) In addition to the allocation under subsection (1), from
the state school aid fund money appropriated under section 11, there is
allocated an amount not to exceed $25,000,000.00 for 2024-2025 and an amount
not to exceed $10,000,000.00 for 2025-2026 only for classroom start up grants
to intermediate districts and consortia of intermediate districts for new or
expanding great start readiness classrooms. All of the following apply to
funding allocated under this subsection:

(a) To receive funding under this subsection, intermediate
districts and consortia of intermediate districts must apply for the funding in
a form and manner prescribed by the department of lifelong education,
advancement, and potential.

(b) The department of lifelong education, advancement, and
potential shall pay an amount not to exceed $50,000.00 for each new or expanded
classroom. If funding is insufficient to fully fund all eligible applicants,
the department of lifelong education, advancement, and potential must prorate
the per-classroom amount on an equal basis. If the allocation is not fully paid
in the current fiscal year, the department of lifelong education, advancement,
and potential may award any remaining funding from fiscal year 2024-2025 during
fiscal year 2025-2026, and may award any remaining funding from fiscal year
2025-2026 during fiscal year 2026-2027 for each new or expanded classroom at an
equal amount per classroom, based on remaining available funds, not to exceed
$50,000.00 per classroom.

(c) Funds received under this subsection by intermediate
districts and consortia of intermediate districts must be paid in full to the
entity operating the classroom and may be used for 1 or more of the following
purposes:

(i) Costs associated with attracting,
recruiting, retaining, and licensing required classroom education personnel to
staff new or expanded classrooms.

(ii) Supporting facility improvements or
purchasing facility space or modular classroom units necessary to provide a
safe, high-quality learning environment for children in each new or expanded
classroom, and for costs to become a licensed facility such as architectural
drawings, permits, and other prelicensure inspection fees.

(iii) Outreach material necessary for public
awareness that the great start readiness program has openings in the area and
for costs associated with enrolling eligible children in new or expanded
classrooms.

(iv) Supporting costs in each new or expanded
classroom associated with improving a provider’s great start to quality level.

(d) Recipients of funds under this subsection must
demonstrate that instructional staff have completed, or are in the process of
completing, professional learning in the science of reading. Grant funds may be
used to support this professional learning and are intended to ensure new
classrooms are well equipped to implement evidence-based early literacy
strategies.

(e) The funds allocated under this subsection for 2024-2025
are a work project appropriation, and any unexpended funds for 2024-2025 do not
lapse to the state school aid fund and are carried forward into 2025-2026. The
purpose of the work project is to continue support for new or expanded great
start readiness classrooms. The estimated completion date of the work project
is September 30, 2026.

(f) The funds allocated under this subsection for 2025-2026
are a work project appropriation, and any unexpended funds for 2025-2026 do not
lapse to the state school aid fund and are carried forward into 2026-2027. The
purpose of the work project is to continue support for new or expanded great
start readiness classrooms. The estimated completion date of the work project
is September 30, 2027.

(g) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this subsection
on a schedule determined by the department of lifelong education, advancement,
and potential.

(32) In addition to the funds allocated in subsection (1),
there is allocated from the general fund money appropriated under section 11
for 2024-2025 only an amount not to exceed $1,950,000.00 for an intermediate district or a
consortium of intermediate districts to partner with the department of lifelong
education, advancement, and potential and community-based organizations to
continue implementing statewide outreach and enrollment campaign activities to
raise awareness about the availability of services through the great start
readiness program, and to promote enrollment.

(33) The funds allocated under subsection (32) for 2024-2025
are a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to raise
awareness of and participation in great start readiness programming. The
estimated completion date of the work project is September 30, 2027.

(34) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under subsection (32)
on a schedule determined by the department of lifelong education, advancement,
and potential.

Sec.
32n. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2024-2025 only an amount not to exceed $79,000,000.00, and
from the state school aid pupil support reserve fund money appropriated in
section 11, there is allocated for 2025-2026 only an amount not to exceed
$75,000,000.00 to Clinton County RESA to collaborate with the department of
lifelong education, advancement, and potential, for the purposes of this
section. It is the intent of the legislature that, for 2026-2027, the
allocation from the state school aid pupil support reserve fund money
appropriated in section 11 for the purposes described in this section will be
$85,000,000.00. It is the intent of the legislature that, for 2027-2028, the
allocation from the state school aid pupil support reserve fund money
appropriated in section 11 for the purposes described in this section will be
$100,000,000.00.

(2) From the state school aid fund money allocated in subsection
(1), there is allocated for 2024-2025 only an amount not to exceed
$57,000,000.00, and from the state school aid pupil support reserve
fund money allocated in subsection (1), there is allocated for 2025-2026 only
an amount not to exceed $75,000,000.00 for a grant program for eligible
applicants to expand access to quality, affordable programming before and after
the school day or during the summer for young people. The department of
lifelong education, advancement, and potential shall establish competitive
grant criteria for the program described in this subsection. To be eligible for
a grant under this subsection, the applicant must meet, at a minimum, all of
the following criteria:

(a) Serve children in any of grades K to 12.

(b) Be a community-based organization that is exempt from
federal income tax under section 501(c)(3) of the internal revenue code, 26 USC
501, an institution of higher education, a public library, a local government,
or an intermediate district.

(c) Provide before-school, after-school,
before-and-after-school, or summer school programming to children described in
subdivision (a). These programs must be used to support expanded learning opportunities,
including, but not limited to, mentoring, leadership, community engagement,
agriculture, visual and performing arts, literacy, science, technology,
engineering, mathematics, health and wellness, recreation, financial literacy,
physical fitness, career and college exploration, youth voice, 21st century
skills, conflict resolution, and social engagement programming.

(d) Address measurable goals, including, but not limited to,
improved school attendance, academic outcomes, improved attitudes toward
school, improved positive behaviors, skill development and retention, higher
education aspirations, and improved family engagement and include activities
linked to research or quality practices.

(e) Be 1 of the following:

(i) A licensed child care organization.

(ii) An entity that has an active application
to be a licensed child care organization.

(iii) An exempt entity.

(3) The department of lifelong education, advancement, and
potential shall establish a competitive grant process for awarding funding
under subsection (2). The department of lifelong education, advancement, and
potential shall develop the form and manner for applying for the grants. The
application must include a request for information on the applicant’s outreach
to children, youth, and families who are eligible for free or reduced-price
meals under the Richard B. Russell national school lunch act, 42 USC 1751 to
1769j. The application must be open for not less than 30 calendar days. Except
as otherwise provided in this subsection, at least 30 days before the
application is opened, the department of lifelong education, advancement, and
potential must publish on its public website the criteria that will be used in
evaluating the application that must include, but are not limited to,
priorities under subsection (5). For 2025-2026 only, the department of
lifelong education, advancement, and potential, is not required to publish the
evaluation criteria at least 30 days before the application is opened.

(4) Subject to subsection (9), in determining award amounts
under subsection (2), the department of lifelong education, advancement, and
potential shall, to the extent practicable, ensure that eligible entities in
all geographic regions of this state are represented in the distribution of
grant funding under subsection (2).

(5) Subject to subsection (9), the department of lifelong
education, advancement, and potential shall prioritize the distribution of
grant funding under subsection (2) based on, at a minimum, the following:

(a) An applicant’s demonstrated need.

(b) The percentage of low-income families in the geographic
area being served. Prioritization must be determined by the average percentage
of pupils in the district who are eligible for free and reduced-priced meals as
determined under the Richard B. Russell national school lunch act, 42 USC 1751
to 1769j, where eligible entities will provide before-and-after-school or
summer school programs.

(c) Whether the application provides services for the full
school year.

(d) The applicant’s track record for providing quality,
affordable before-and-after-school or summer school services.

(e) Whether an applicant serving children in any of grades K
to 8 is a licensed child care organization, is an entity that has an active
application to be a licensed child care organization, or has implemented the
Michigan Out-of-School Time Standards of Quality if the applicant is an exempt
entity and, beginning in 2025-2026, serves at least 15 school-age youth at a
single location in grades K to 12.

(6) Subject to subsection (7), an eligible entity that
receives grant funding under subsection (2) shall use the funding only to
provide before-school, after-school, before-and-after-school, or summer school
programming to children described in subsection (2)(a). The programming offered
under subsection (2) must meet all of the following:

(a) For programming that is offered by a licensed child care
organization, be provided to children and youth in a manner in which the
children are physically present at the building or location for which the
licensed child care organization received its license under 1973 PA 116, MCL
722.111 to 722.128, or, for programming that is offered by an exempt entity
serving grades K to 12, be provided to children and youth in a manner in which
the children and youth are physically present at a building or location designated
by the exempt entity.

(b) Provide educational programming in core subject areas,
including, but not limited to, mathematics, reading, and science.

(c) Provide data to evaluate the program in a form and manner
as prescribed by the department of lifelong education, advancement, and
potential.

(7) For 2024-2025 only, and subject to subsections (4) and
(5), up to 2% of funding allocated under subsection (2) must be allocated
to a nonprofit entity with experience serving youth-serving organizations to
provide start-up grants and capacity building, professional development, and
technical assistance for implementation of high-quality, evidence-based out-of-school
time learning opportunities.

(8) Beginning in 2025-2026, all of the following apply to
funding allocated under this section:

(a) An amount not to exceed 0.25% of the funding allocated
under subsection (2) or $250,000.00, whichever is greater, may be retained by
Clinton County RESA for administrative costs.

(b) An amount not to exceed $500,000.00 of the funding
allocated under subsection (2) must be allocated by Clinton County RESA, as
directed by the department of lifelong education, advancement, and potential,
and in collaboration with the center and the Michigan afterschool partnership
as needed, to provide statewide evaluation activities of eligible youth served,
their families, and programs funded under this section. This evaluation must
allow for a comparative analysis between program youth and their peers in
grades K to 12.

(c) An amount not to exceed 1.5% of the funding allocated
under subsection (2) must be allocated by Clinton County RESA, as directed
by the department of lifelong education, advancement, and potential, and in
collaboration with the Michigan afterschool partnership, to provide statewide
out-of-school time activities and supports including, but not limited to, capacity
building initiatives, professional development, and technical assistance to
increase the likelihood for implementation of high quality, evidence-based,
out-of-school time learning opportunities by eligible entities under
subsections (4) and (5).

(9) The department of lifelong education, advancement, and
potential shall award not less than 60% of the funding under subsection (2) to
community-based organizations.

(10) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this section in
full upon grant award. Grantees that do not comply with reporting requirements,
fail to provide the services proposed in their grant application, or close
during the grant period may be required to repay the funding they received
under this section to the department of lifelong education, advancement, and
potential.

(11) The department of lifelong education, advancement, and
potential, in collaboration with the Michigan Afterschool Partnership, shall
convene an advisory committee to review the program components listed within
this section and make recommendations to the department of lifelong education,
advancement, and potential for changes on the program described in this
section. The advisory committee shall meet at a schedule set by the department
of lifelong education, advancement, and potential, or at least quarterly. The
advisory committee shall provide for the involvement of, but not limited to,
community-based organizations, regional intermediaries, district
administrators, youth, parents, and representatives from the business and
philanthropic communities, as appropriate.

(12) From the state school aid fund money allocated in
subsection (1), Clinton County RESA shall allocate $22,000,000.00 in 2024-2025
only to recipients under this subsection as follows:

(a) $4,000,000.00 to support the efforts of FFA.

(b) $4,000,000.00 to the Boys and Girls Club of Southeastern Michigan
in Detroit to expand programming. Programming expansion includes, but is not
limited to, construction or remodeling of facilities to allow for new or
extended programs.

(c) $4,000,000.00 to the HYPE Athletics Center in Dearborn
Heights to provide programming that may include, but is not limited to,
science, technology, engineering, arts, and mathematics (STEAM) programs;
literacy and reading programs; after-school programs; youth fitness and
athletic programs; and mental health and behavioral health services.

(d) $1,500,000.00 to Brilliant Detroit to support delivery of
high-dosage neighborhood-based tutoring and direct noninstructional services
for at-risk pupils who are 3 to 12 years of age. Funding under this subdivision
is intended to ensure that pupils are proficient in English language arts by
the end of grade 3 and proficient in mathematics by the end of grade 8, that
all participants are kindergarten ready, and that pupils are prepared to attend
school regularly. As used in this subdivision, “at-risk pupil” means that term
as defined in section 31a.

(e) $1,200,000.00 to the State Alliance of Michigan YMCAs to
provide students in grades 6 to 12 with hands-on civics and model-government
programs that offer statewide engagement with peers across this state for the
purpose of expanding those students’ opportunities to improve their social
studies knowledge, thinking skills, and intellectual processes and dispositions
required for active engagement in fulfilling responsibilities of civic
participation.

(f) $1,000,000.00 to the Downtown Boxing Gym in Detroit to
expand programming. Programming expansion includes, but is not limited to,
construction or remodeling of facilities to allow for new or extended programs.

(g) $1,000,000.00 to support the operations of the Flint
Center for Educational Excellence.

(h) $800,000.00 to the Detroit Opera for educational
programming for grades pre-K to 12, including field trips, summer camps, and
other learning opportunities. The funds allocated under this subdivision are a
work project appropriation, and any unexpended funds for 2024-2025 are carried
forward into 2025-2026. The purpose of the work project is to support the
Detroit Opera educational programming as described in this subdivision. The
estimated completion date of the work project is September 30, 2028.

(i) $500,000.00 to Special Olympics Michigan, a nonprofit
organization organized under the laws of this state that is exempt from federal
income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC
501, that has a mission statement to provide year-round sports training and
athletic competition for children and adults with intellectual disabilities.
Funding under this subdivision must be used by the organization to expand the
organization’s programming.

(j) $500,000.00 to the Horatio Williams Foundation to support
efforts to provide college preparation services, math leagues, sports
programming, and literacy services in Detroit.

(k) $500,000.00 to Friends of the Children, a nonprofit
organization that employs salaried professional mentors who support youth and
their families from grades K to 12. The salaried professional mentorship
program in this subdivision must employ a 2-generational approach to supporting
youth in and outside of the classroom, particularly in reading and math
comprehension; support students and their families by connecting them to
concrete supports like education and employment pathways, housing, utility assistance,
and food security; and be located in a city with a population greater than
600,000 in a county with a population greater than 1,500,000 according to the
most recent federal decennial census.

(l) $500,000.00 to the Detroit Police
Athletic League to support operations and programming including, but not
limited to, athletic programs and youth enrichment programs.

(m) $500,000.00 to the Detroit Science Center, a nonprofit
organization that is tax-exempt under section 501(c)(3) of the internal
revenue code of 1986, 26 USC 501, and located in a city with a population
greater than 600,000 in a county with a population greater than 1,700,000
according to the most recent federal decennial census. Funds under this
subdivision must be used by the nonprofit organization to expand the nonprofit
organization’s mission of providing opportunities for students to discover,
explore, and appreciate science, technology, engineering, and mathematics in a
creative, dynamic learning environment.

(n)
$2,000,000.00 to buildOn Detroit to expand the Service Learning Program for
high school students.

(13) For 2024-2025 only, recipients of grants under
subsection (12) may not apply for funding under subsection (2).

(14) Funds allocated under subsection (12) for 2024-2025 are
a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to provide
additional support to out-of-school time programs. The estimated completion
date of the work project is September 30, 2026.

(15) As used in this section:

(a) “An entity that has an active application to be a
licensed child care organization” means an entity that has an active
application to be a licensed child care organization under 1973 PA 116, MCL
722.111 to 722.128, and will be a licensed child care organization before the
entity provides services for which a child care organization is required to be
licensed under 1973 PA 116, MCL 722.111 to 722.128.

(b) “Child care organization” means that term as defined in
section 1 of 1973 PA 116, MCL 722.111.

(c) “Exempt entity” means an entity described in section
1(1)(i)(i) to (v) of
1973 PA 116, MCL 722.111.

(d) “Licensed child care organization” means a child care
organization that has been issued a license under 1973 PA 116, MCL 722.111 to
722.128, to operate a child care organization.

(e) “School-age” means a child who is eligible to attend a
grade of kindergarten or higher, but is less than 13 years of age. A child
is considered to be school age on the first day of the school year in which the
child is eligible under section 1 of 1973 PA 116, MCL 722.111.

Sec.
32t. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 only an amount not to exceed $25,000,000.00 to
Clinton County RESA (CCRESA) for phase 2 of a preschool pilot program to
provide services to 3-year-old children. Eligible children are those whose age
is less than 4 years on September 1 and greater than or equal to 3 years on
December 1 of the current school year and whose family income is at or below
250% of the federal poverty level, with priority given to families with lower
incomes. Additional factors such as developmental delay, language barriers, or
challenging behaviors may also be considered for eligibility. These services
must be designed for children who are age 3 and must be similar to the services
provided through the great start readiness program. The program described in
this section must be administered by CCRESA Strong Beginnings Implementation
Team under the direction of the department of lifelong education, advancement,
and potential, with assessment, data, and collection analysis for the program
being provided by Michigan State University.

(2) The department of lifelong education, advancement, and
potential must pay the funding under this section to Clinton County RESA in
installments over 2 years. The department of lifelong education, advancement,
and potential shall determine the amount to be used in each year.

(3) This section is intended to provide planning for and implement phase 2 of the
pilot preschool program for 3-year-old children. The second phase of the pilot
will examine variations of the current program, such as part-day,
5-day-per-week, multiage grouping with the great start readiness program, and
inclusion.

(4) In order to evaluate the outcomes and impact of strong
beginnings, Clinton County RESA and Michigan State University shall
compare outcomes for children who attend strong beginnings and the great start
readiness program with:

(a) Outcomes for children who attend the great start
readiness program only.

(b) Outcomes for children who did not attend either program.

(5) Data used for the purpose of comparisons under subsection
(4) must include, at a minimum, strong beginnings waitlist data, strong
beginnings child assessment data, the great start readiness program child
assessment data, kindergarten attendance data, and elementary standardized
testing data.

(6) At the end of phase 2, Clinton County RESA shall provide
a report to the department of lifelong education, advancement, and potential
detailing all of the following:

(a) How the phase 2 pilot was conducted.

(b) Demographics of the children served.

(c) Outcomes achieved.

(d) Scope of expansion, including successes and challenges
the pilot faced and how the implementation team responded.

(e) An updated model, including phase 2 variations, this
state could use to scale the program statewide, if funding were available.

(7) The funds allocated under this section for 2025-2026 are
a work project appropriation, and any unexpended funds for 2025-2026 are
carried forward into 2026-2027. The purpose of the work project is to expand
phase 1 of the pilot to additional classrooms and initiate phase 2 of the
pilot. The estimated completion date of the work project is September 30, 2029.

(8) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this section on
a schedule determined by the department of lifelong education, advancement, and
potential.

Sec.
32y. Notwithstanding section 18a, funds allocated under former section 32x for
2023-2024 may be available for expenditure until September 30, 2029. A
recipient of funding under that section must return any unexpended funds to the
department in the manner prescribed by the department not later than October
30, 2029.

Sec.
33. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $11,000,000.00 for 2023-2024 only for
grants to eligible districts for the purposes described in this section.

(2) To receive a grant under this section, a district must
apply for the grant in a form and manner prescribed by the department.

(3) A district that meets both of the following is an
eligible district under this section:

(a) The district must enroll students in grades K to 5.

(b) The district must, in its application described in
subsection (2), pledge to do all of the following:

(i) Provide for all pupils in grades K to 5
at least 60 minutes per week of instruction in music or visual arts, taught by
a certificated teacher who has, or is working towards, the appropriate
endorsement issued by the department. For teaching music, the appropriate
endorsement is a JX or JQ endorsement. For teaching visual arts, the
appropriate endorsement is an LQ, LX, or LZ endorsement.

(ii) Maintain staffing that includes at least
1 certificated teacher with a JX or JQ music endorsement or an LQ, LX, or LZ
visual arts endorsement issued by the department for every 400 pupils enrolled
in grades K to 5.

(iii) Adopt and implement, or maintain,
specific curricula for music or visual arts.

(iv) Maintain in each elementary school at
least 1 space that is either dedicated to music or visual arts instruction or
designated to be used for music or visual arts instruction and that allows for
effective implementation of the music or visual arts curriculum, with
consideration given to the physical materials and tools needed for music or
visual arts instruction.

(v) Establish and maintain a separate
dedicated budget for music or visual arts instruction in grades K to 5.

(vi) Participate in the collection of data in
the fall and spring of the 2024-2025 school year on changes in course
offerings, instructor qualifications, student course enrollments, and other
aspects of the district’s music or visual arts programs as determined by the
department and MI Creative Potential.

(vii) Commit to including music and visual
arts in district and school continuous improvement planning using the program
review tool that accompanies the Michigan Blueprint of a Quality Arts
Education, available in the Michigan Integrated Continuous Improvement Process
database.

(viii) Adopt and implement a plan to satisfy
the recommendations listed in the Michigan Blueprint of a Quality Arts
Education program.

(4) Grants awarded under this section must be awarded for the
coverage of costs for 1 year of additional costs, including 1-time costs, for
the district to implement or maintain a music or visual arts program.

(5) In awarding grants under this section, the department
shall prioritize as follows:

(a) The department shall first award grants to districts that
are first-time applicants and meet 1 of the following:

(i) The district currently has a music or
visual arts program that meets the requirements of subsection (3)(b)(i) to (vii) but does not meet the recommendations
listed in the Michigan Blueprint of a Quality Arts Education program and the
district will use the grant to move toward implementing those recommendations.

(ii) The district does not currently have a
music program that meets the requirements of subsection (3)(b)(i) to (vii) or does not currently have a visual arts
program that meets the requirements of subsection (3)(b)(i) to (vii).

(b) If there is funding remaining after awarding grants to
districts described in subdivision (a), the department shall award grants to
other eligible districts.

(6) All grants under this section must be awarded by not
later than February 1 of the fiscal year in which the grant is approved.

(7) If the total funding allocated under this section is
insufficient to fully fund payments to all eligible districts under this
section, the department shall prorate payments to all eligible districts on an
equal percentage basis.

(8) Subject to the provisions of subsection (9), in addition
to the funds appropriated in section 11, from the state school aid fund, there
is appropriated and allocated an amount not to exceed $2,500,000.00 to Eaton
Regional Education Service Agency to serve as the fiscal agent for the Michigan
Assessment Consortium to be used in implementing MI Creative Potential, as led
by the Michigan Arts Education Instruction and Assessment Project, developed by
the Michigan Assessment Consortium, in partnership with the Michigan Department
of Education, Michigan Arts and Culture Council, and Michigan educators. The
Michigan Assessment Consortium shall implement MI Creative Potential by
acquiring and implementing the artlook platform, by building school and
community partnerships to allow districts to publicize their need for
supplemental arts instruction, by providing professional learning on artlook
tools, and by collecting and uploading data on availability of arts education
within districts in each prosperity region each school year. The data collected
and uploaded must include, but is not limited to, how many arts classes are
offered, the duration and frequency of instruction in the disciplines, educator
and staffing details, the arts budget in each building, arts-related
extracurricular activities that are offered, and community partners that are
engaged. Eaton Regional Education Service Agency shall provide a report to the
department each September on progress of this work.

(9) The appropriation and allocation under subsection (8) is
contingent on the effective issuance of a directive by the budget director,
pursuant to section 451a of the management and budget act, 1984 PA 431, MCL
18.451a, to lapse $2,500,000.00 in remaining funding from a work project that
was established under this section in 2023-2024. The amount allocated under
subsection (8) may not exceed the amount lapsed from the work project
referenced in the immediately preceding sentence.

(10) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(11) The funds allocated under this section for 2023-2024 are
a work project appropriation, and any unexpended funds for 2023-2024 are
carried forward into 2024-2025. The purpose of the work project is to provide
for music or visual arts education. The estimated completion date of the work
project is September 30, 2027.

Sec.
35a. (1) From the appropriations in section 11, there is allocated for 2024-2025
an amount not to exceed $82,900,000.00 and for 2025-2026 an amount not to
exceed $52,000,000.00 from the state school aid fund for the purposes of this
section. It is the intent of the legislature that, for 2026-2027, the
allocation from the state school aid fund money appropriated in section 11 for
the purposes described in this section will be $42,000,000.00. Excluding staff
or contracted employees funded under subsection (8), the superintendent shall
designate staff or contracted employees funded under this section as critical
shortage. By not later than December 31 of each fiscal year in which funding is
allocated under this section, the superintendent of public instruction shall do
both of the following:

(a) Report in person to the house and senate appropriations
subcommittees on school aid regarding progress on early literacy and be
available for questioning as prescribed through a process developed by the
chairs of the house and senate appropriations subcommittees on school aid.

(b) Submit a written report to the house and senate
appropriations subcommittees on school aid regarding progress on early
literacy. Beginning in 2025-2026, the report described in this
subdivision must include the number of literacy coaches supported by funding
provided under subsection (4), including the number of coaches supported in
each intermediate district, and the percentage of supported coaches that have
received, or are in the process of receiving, professional learning by the
approved provider described in subsection (11).

(2) A district that receives funds under subsection (5) may
spend up to 5% of those funds for professional development for educators in a
department-approved research-based training program related to current state
literacy standards for pupils in grades pre-K to 5. The professional
development must also include training in the use of screening and diagnostic
tools, progress monitoring, and intervention methods used to address barriers
to learning and delays in learning that are diagnosed through the use of these
tools.

(3) A district that receives funds under subsection (5) may
use up to 5% of those funds to administer department-approved screening and
diagnostic tools to monitor the development of early literacy and early reading
skills, and risk factors for word-level reading difficulties of pupils in
grades pre-K to 5 and to support evidence-based professional learning described
in subsection (11) for educators in administering and using screening, progress
monitoring, and diagnostic assessment data to inform instruction through
prevention and intervention in a multi-tiered system of supports framework. A
department-approved screening and diagnostic tool administered by a district
using funding under this section must include all of the following components:
phonemic awareness, phonics, fluency, rapid automatized naming (RAN), and
comprehension. Further, all of the following sub-skills must be assessed within
each of these components:

(a) Phonemic awareness - segmentation, blending, and sound
manipulation (deletion and substitution).

(b) Phonics - decoding (reading) and encoding (spelling).

(c) Fluency.

(d) Comprehension - making meaning of text.

(4) From the allocation under subsection (1), there is
allocated an amount not to exceed $42,000,000.00 for 2024-2025 and 2025-2026
for the purpose of providing early literacy coaches at intermediate districts
to assist teachers in developing and implementing instructional strategies for
pupils in grades pre-K to 5 so that pupils are reading at grade level by the
end of grade 3. All of the following apply to funding under this subsection:

(a) The department shall develop an application process
consistent with the provisions of this subsection. An application must provide
assurances that literacy coaches funded under this subsection are knowledgeable
about at least the following:

(i) Current state literacy standards for
pupils in grades pre-K to 3.

(ii) Implementing an instructional delivery
model based on frequent use of formative, screening, and diagnostic tools,
known as a multi-tiered system of supports, to determine individual progress
for pupils in grades pre-K to 5 so that pupils are reading at grade level
by the end of grade 3.

(iii) The use of data from diagnostic tools to
determine the necessary additional supports and interventions needed by
individual pupils in grades pre-K to 5 to read at grade level.

(b) From the allocation under this subsection, the department
shall award grants to intermediate districts for the support of early literacy
coaches. The department shall provide this funding in the following manner:

(i) The department shall award each
intermediate district grant funding to support the cost of 2 early literacy
coaches in an equal amount per early literacy coach, not to exceed $125,000.00.

(ii) After distribution of the grant funding
under subparagraph (i), the department shall distribute the
remainder of grant funding for additional early literacy coaches in an amount
not to exceed $125,000.00 per early literacy coach. The number of funded early
literacy coaches for each intermediate district is based on the percentage of
the total statewide number of pupils in grades K to 3 who meet the income
eligibility standards for the federal free and reduced-price lunch programs who
are enrolled in districts in the intermediate district.

(c) If an intermediate district that receives funding under
this subsection uses an assessment tool that screens for characteristics of
dyslexia, the intermediate district shall use the assessment results from that
assessment tool to identify pupils who demonstrate characteristics of dyslexia.

(d) All literacy coaches funded under this subsection must
have already received, or be making progress toward receiving, professional
learning by the approved provider described in subsection (11).

(e) To be eligible to receive funding under this subsection,
an intermediate district must provide the department with a list by September 1
of the immediately preceding fiscal year containing contact information for all
literacy coaches funded under this subsection, in a form and manner determined
by the department. An intermediate district shall communicate any personnel
changes and changes to contact information for literacy coaches funded under
this subsection to the department within 30 days of the personnel change or
change in contact information.

(5) From the allocation under subsection (1), there is
allocated an amount not to exceed $19,900,000.00 for 2024-2025 to districts
that provide additional instructional time to those pupils in grades pre-K to 5
who have been identified by using department-approved screening and diagnostic
tools as needing additional supports and interventions to read at grade level
by the end of grade 3. Additional instructional time may be provided before,
during, and after regular school hours or as part of a year-round balanced
school calendar. All of the following apply to funding under this subsection:

(a) To be eligible to receive funding, a district must
demonstrate to the satisfaction of the department that the district has done
all of the following:

(i) Implemented a multi-tiered system of
supports instructional delivery model that is an evidence-based model that uses
data-driven problem solving to integrate academic and behavioral instruction
and that uses intervention delivered to all pupils in varying intensities based
on pupil needs. The multi-tiered system of supports must provide at least all
of the following essential components:

(A) Team-based leadership.

(B) A tiered delivery system.

(C) Selection and implementation of instruction,
interventions, and supports.

(D) A comprehensive screening and assessment system.

(E) Continuous data-based decision making.

(ii) Used department-approved research-based
diagnostic tools to identify individual pupils in need of additional
instructional time.

(iii) Used a reading instruction method that
focuses on the 5 fundamental building blocks of reading: phonics, phonemic
awareness, fluency, vocabulary, and comprehension and content knowledge.

(iv) Provided teachers of pupils in grades
pre-K to 5 with research-based professional development in diagnostic data
interpretation.

(v) Complied with the requirements under
section 1280f of the revised school code, MCL 380.1280f.

(b) The department shall distribute funding allocated under
this subsection to eligible districts on an equal per-first-grade-pupil basis.

(c) If the funds allocated under this subsection are
insufficient to fully fund the payments under this subsection, payments under
this subsection are prorated on an equal per-pupil basis based on grade 1
pupils.

(6) By not later than September 1 of each year, a district
that receives funding under subsection (5) in conjunction with the Michigan
student data system, if possible, shall provide to the department a report that
includes at least both of the following, in a form and manner prescribed by the
department:

(a) For pupils in grades pre-K to 5, the teachers, pupils,
schools, and grades served with funds under this section and the categories of
services provided.

(b) For pupils in grades pre-K to 5, pupil proficiency and
growth data that allows analysis both in the aggregate and by each of the
following subgroups, as applicable:

(i) School.

(ii) Grade level.

(iii) Gender.

(iv) Race.

(v) Ethnicity.

(vi) Economically disadvantaged status.

(vii) Disability.

(viii) Pupils identified as having reading
deficiencies.

(7) From the allocation under subsection (1), there is
allocated an amount not to exceed $6,000,000.00 for 2024-2025 to an
intermediate district in which the combined total number of pupils in
membership of all of its constituent districts is the fewest among all
intermediate districts. All of the following apply to the funding under this
subsection:

(a) Funding under this subsection must be used by the
intermediate district, in partnership with an association that represents
intermediate district administrators in this state, to implement all of the
following:

(i) Literacy essentials teacher and
principal training modules.

(ii) Face-to-face and online professional
learning of literacy essentials teacher and principal training modules for
literacy coaches, principals, and teachers.

(iii) The placement of regional lead literacy
coaches to facilitate professional learning for early literacy coaches. These
regional lead literacy coaches shall provide support for new literacy coaches,
building teachers, and administrators and shall facilitate regional data
collection to evaluate the effectiveness of statewide literacy coaches funded
under this section.

(iv) Provide $500,000.00 from this subsection
for literacy training, modeling, coaching, and feedback for district principals
or chief administrators, as applicable. The training described in this
subparagraph must use the pre‑K and K to 3 essential instructional
practices in literacy created by the general education leadership network as
the framework for all training provided under this subparagraph.

(v) Job-embedded professional learning
opportunities for mathematics teachers through mathematics instructional
coaching. Funding must be used for professional learning for coaches,
professional developers, administrators, and teachers; coaching for early mathematics
educators; the development of statewide and regional professional learning
networks in mathematics instructions; and the development and support of
digital professional learning modules.

(b) By not later than September 1 of each year, the
intermediate district described in this subsection, in consultation with grant
recipients, shall submit a report to the chairs of the senate and house
appropriations subcommittees on school aid, the chairs of the senate and house
standing committees responsible for education legislation, the house and senate
fiscal agencies, and the state budget director. The report described under this
subdivision must include student achievement results in English language arts
and mathematics and survey results with feedback from parents and teachers
regarding the initiatives implemented under this subsection.

(c) Up to 2% of funds allocated under this subsection may be
used by the association representing intermediate district administrators that
is in partnership with the intermediate district specified in this subsection
to administer this subsection.

(8) From the allocation under subsection (1), the department
shall allocate the amount of $5,000,000.00 for 2024-2025 only to an
intermediate district or a consortium of intermediate districts to partner with
the Michigan Education Corps for the PreK Reading Corps, the K3 Reading Corps,
and the Math Corps. An intermediate district or a consortium of intermediate
districts receiving funding under this subsection must forward the amount
received under this subsection to the Michigan Education Corps for statewide
services. As conditions of receiving funding from an intermediate district or a
consortium of intermediate districts, all of the following apply to funding
received by the Michigan Education Corps under this subsection:

(a) By September 1 of the current fiscal year, the Michigan
Education Corps shall provide a report concerning its use of the funding to the
senate and house appropriations subcommittees on school aid, the senate and
house fiscal agencies, and the senate and house caucus policy offices on
outcomes and performance measures of the Michigan Education Corps, including,
but not limited to, the degree to which the Michigan Education Corps’
replication of the PreK Reading Corps, the K3 Reading Corps, and the Math Corps
programs is demonstrating sufficient efficacy and impact. The report must
include data pertaining to at least all of the following:

(i) The current impact of the programs on
this state in terms of numbers of children and schools receiving support. This
portion of the report must specify the number of children tutored, including
dosage and completion, and the demographics of those children.

(ii) Whether the assessments and
interventions are implemented with fidelity. This portion of the report must
include details on the total number of assessments and interventions completed
and the range, mean, and standard deviation.

(iii) Whether the literacy or math improvement
of children participating in the programs is consistent with expectations. This
portion of the report must detail at least all of the following:

(A) Growth rate by grade or age level, in comparison to
targeted growth rate.

(B) Average linear growth rates.

(C) Exit rates.

(D) Percentage of children who exit who also meet or exceed
spring benchmarks.

(iv) The impact of the programs on
organizations and stakeholders, including, but not limited to, school
administrators, internal coaches, and AmeriCorps members.

(b) If the department determines that the Michigan Education
Corps has misused the funds allocated under this subsection, the Michigan
Education Corps shall reimburse this state for the amount of state funding
misused.

(c) An intermediate district or a consortium of intermediate
districts may not reserve any portion of the allocation provided under this
subsection for an evaluation of the Michigan Education Corps, the Michigan
Education Corps’ funding, or the Michigan Education Corps’ programming unless
agreed to in writing by the Michigan Education Corps. An intermediate district
or a consortium of intermediate districts shall award the entire amount
allocated under this subsection to the Michigan Education Corps and shall not
condition the forwarding of this funding on the implementation of an
independent evaluation.

(9) If a district or intermediate district expends any
funding received under subsection (4) or (5) for professional development in
research-based effective reading instruction, the district or intermediate
district shall select a professional development program from the list
described in subdivision (a). All of the following apply to the requirement under
this subsection:

(a) The department shall issue a request for proposals for
professional development programs in research-based effective reading
instruction to develop an initial approved list of professional development
programs in research-based effective reading instruction. The department shall
make the initial approved list public and shall determine if it will, on a
rolling basis, approve any new proposals submitted for addition to its initial
approved list.

(b) To be included as an approved professional development
program in research-based effective reading instruction under subdivision (a),
an applicant must demonstrate to the department in writing the program’s
competency in all of the following topics:

(i) Understanding of phonemic awareness,
phonics, fluency, vocabulary, and comprehension.

(ii) Appropriate use of assessments and
differentiated instruction.

(iii) Selection of appropriate instructional
materials.

(iv) Application of research-based
instructional practices.

(c) As used in this subsection, “effective reading
instruction” means reading instruction scientifically proven to result in
improvement in pupil reading skills.

(10) From the allocation under subsection (1), there is
allocated an amount not to exceed $10,000,000.00 for 2024-2025 and 2025-2026
only to an intermediate district identified by the department for the provision
of professional learning by the approved provider described in subsection (11),
first to educators in pre-K, kindergarten, and grade 1 next to educators in
grade 2 and grade 3; and then to additional elementary school educators and
pre-K to grade 12 certificated special education personnel with endorsements in
learning disabilities, emotional impairments, or speech and language
impairments. For purposes of this subsection, the approved provider must
establish and manage professional learning opportunities that are open to all
school personnel described in this subsection as follows:

(a) The approved provider must first open voluntary
enrollment for any pre-K through grade 3 teacher on a first-come, first-served
basis, with voluntary enrollment prioritized for pre-K, kindergarten, and grade
1 teachers. The approved provider shall then open voluntary enrollment for the
remaining school personnel described in this subsection.

(b) The approved provider must maintain open enrollment until
all funds are expended.

(11) For the provision of professional learning to the school
personnel described in subsection (10), LETRS is the approved provider of
professional learning as long as LETRS continues to meet all of the following:

(a) Be offered through a system of training that provides
educators with the knowledge base to effectively implement any class-wide,
supplemental, or intervention reading approach and to determine why some
students struggle with reading, writing, spelling, and language.

(b) Provide training activities that direct educators to
implement effective reading and spelling instruction supported by
scientifically based research and foster a direct explicit instructional
sequence that uses techniques to support teachers’ independence in using their
newly-learned skills with students in the classroom.

(c) Include integrated components for educators and
administrators in pre-K to grade 3 with embedded evaluation or assessment of
knowledge. Evaluation or assessment of knowledge under this subdivision must
incorporate evaluations of learning throughout each unit and include a
summative assessment that must be completed to demonstrate successful course
completion.

(d) Build teacher content knowledge and pedagogical knowledge
of the critical components of literacy including how the brain learns to read,
phonological and phonemic awareness; letter knowledge; phonics; advanced
phonics; vocabulary and oral language; fluency; comprehension; spelling and
writing; and the organization of language.

(e) Support educators in understanding how to effectively use
screening, progress monitoring, and diagnostic assessment data to improve
literacy outcomes through prevention and intervention for reading difficulties
in a multi-tiered system of supports. The multi-tiered system of supports must
include at least all of the following essential components:

(i) Team-based leadership.

(ii) A tiered delivery system.

(iii) Selection and implementation of
instruction, interventions, and supports.

(iv) A comprehensive screening and assessment
system.

(v) Continuous data-based decision making.

(12) Notwithstanding section 17b, the department shall make
payments made under subsections (7) and (8) on a schedule determined by the
department.

(13) As used in this section:

(a) “Dyslexia” means both of the following:

(i) A specific learning disorder that is
neurobiological in origin and characterized by difficulties with accurate or
fluent word recognition and by poor spelling and decoding abilities that
typically result from a deficit in the phonological component of language that
is often unexpected in relation to other cognitive abilities and the provision
of effective classroom instruction.

(ii) A specific learning disorder that may
include secondary consequences, such as problems in reading comprehension and a
reduced reading experience that can impede the growth of vocabulary and
background knowledge and lead to social, emotional, and behavioral
difficulties.

(b) “Evidence-based” means an activity, program, process,
service, strategy, or intervention that demonstrates statistically significant
effects on improving pupil outcomes or other relevant outcomes and that meets
at least both of the following:

(i) At least 1 of the following:

(A) Is based on strong evidence from at least 1 well-designed
and well-implemented experimental study.

(B) Is based on moderate evidence from at least 1
well-designed and well-implemented quasi-experimental study.

(C) Is based on promising evidence from at least 1
well-designed and well-implemented correlational study with statistical
controls for selection bias.

(D) Demonstrates a rationale based on high-quality research
findings or positive evaluation that the activity, program, process, service,
strategy, or intervention is likely to improve pupil outcomes or other relevant
outcomes.

(ii) Includes ongoing efforts to examine the
effects of the activity, program, process, service, strategy, or intervention.

(c) “Explicit” means direct and deliberate instruction
through continuous pupil-teacher interaction that includes teacher modeling,
guided practice, and independent practice.

(d) “Fluency” means the ability to read with speed, accuracy,
and proper expression.

(e) “Multi-tiered system of supports” means a comprehensive
framework that includes 3 distinct tiers of instructional support and is
composed of a collection of evidence-based strategies designed to meet the
individual needs and assets of a whole pupil at all achievement levels.

(f) “Phonemic awareness” means the conscious awareness of all
of the following:

(i) Individual speech sounds, including, but
not limited to, consonants and vowels, in spoken syllables.

(ii) The ability to consciously manipulate
through, including, but not limited to, matching, blending, segmenting,
deleting, or substituting, individual speech sounds described in subparagraph (i).

(iii) All levels of the speech sound system,
including, but not limited to, word boundaries, rhyme recognition, stress
patterns, syllables, onset-rime units, and phonemes.

(g) “Phonological” means relating to the system of
contrastive relationships among the speech sounds that constitute the
fundamental components of a language.

(h) “Progress monitoring” means the assessing of students’
academic performance, quantifying students’ rates of improvement or progress
toward goals, and determining how students are responding to instruction.

(i) “Rapid automatized naming (RAN)” means a task that
measures how quickly individuals can name objects; pictures; colors; or
symbols, including letters and digits, aloud, which can predict later reading
abilities for preliterate children.

Sec.
35e. (1) From
the state school aid fund money appropriated in section 11, there is allocated
for 2025-2026 only an amount not to exceed $250,000.00 to Wayne State
University to study this state’s public school library programs.

(2) Wayne State University shall convene a committee to
conduct the study described in this section. The committee must consist of 1
member from each of the following organizations:

(a) The department.

(b) The Library of Michigan.

(c) The Michigan Association of School Librarians.

(d) The Michigan senate.

(e) The Michigan house of representatives.

(f) The Michigan Education Association.

(g) The Michigan chapter of the American Federation of
Teachers.

(h) The Michigan Association of Superintendents and
Administrators.

(i) A Michigan research university.

(3) The committee described in subsection (2) shall conduct a
study to investigate at least all of the following issues:

(a) How many schools in each district have a school library.

(b) What hours school libraries are open each week for
students and faculty to use.

(c) What full-time equivalency of certified school librarians
are employed at each building.

(d) The ratio of students per certified school librarian.

(e) What full-time equivalency of paraprofessional or other
staff are employed in the school library and the credentialing of these staff,
if any.

(f) How school libraries are scheduled.

(g) How many hours each week school librarians provide direct
library-related instruction to students.

(h) The technology available for students to access library
resources and lessons.

(i) The size and age of the collection in each school
library, and the extent of digital materials available for students to access.

(j) Current funding per student for school library materials.

(k) Any other matters that the committee considers relevant
to the fulfillment of its mission to determine the status of school library
programs in this state.

(4) The department shall provide staff and other resources as
the committee described in subsection (2) considers appropriate, including
contracting with a researcher. Appropriate costs must be determined by the
department, and the committee described in subsection (2) shall reimburse the
department for costs related to this subsection.

(5) The committee described in subsection (2) may conduct
public hearings to gather information, and may sponsor statewide or regional
conferences involving educators, students, or the public at large.

(6) The committee described in subsection (2) shall provide a
report to the house and senate appropriations subcommittees on school aid, the
state budget director, the house and senate fiscal agencies, and the department
by not later than December 31, 2026. The report must create a long-term plan
for this state’s school library programs that may include the adoption of
guidelines for school library facilities, budget, staffing, collection
development, and curriculum standards for school library programs. The final
report and recommendations must include drafts of legislation necessary to
carry those recommendations into effect.

(7) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
35m. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 only an amount not to exceed $64,400,000.00 for the
purposes described in this section, including payments to improve educational
outcomes in literacy.

(2) The department shall continue the committee for literacy
achievement that includes representatives of higher education and early
childhood literacy educators who have expertise in literacy instruction and
research. The committee shall exist until at least September 2029. The
department shall appoint the members of the committee for literacy achievement.
The department shall develop a process to identify and assemble experts for the
committee. The primary focus of the committee is to recommend tools and strategies
with the goal of increasing student academic outcomes in the area of literacy.
The committee is encouraged to collaborate with the Michigan Education Research
Institute or other entities with similar expertise on the subject of literacy.
The department shall determine the size and benchmarks of the committee. The
committee shall do all of the following:

(a) Critically evaluate early literacy series and materials.
The committee shall evaluate with research-based outcomes, using the committee’s
expertise in the field of literacy. The committee shall assign grade tiers to
the series based on the series’ likelihood to increase student literacy
outcomes. Priority must be given to series that already have a demonstrated
history of increasing student outcomes. The committee may perform an evaluation under this
subdivision based on submissions from a vendor, but must independently verify
the validity of information provided by the vendor. The committee is also
strongly encouraged to evaluate available materials not submitted to the
department by a vendor.

(b) Critically evaluate literacy professional development.
The committee shall evaluate with research-based outcomes, using the committee’s
expertise in the field of literacy. The committee shall assign grade tiers to
the professional development based on the professional development’s likelihood
to increase student literacy outcomes. Priority must be given to professional
development that already has a demonstrated history of increasing student
outcomes. The
committee may perform an evaluation under this subdivision based on submissions
from a vendor, but must independently verify the validity of information
provided by the vendor. The committee is also strongly encouraged to evaluate
available materials not submitted to the department by a vendor.

(c) Critically evaluate other applicable literacy tools or
services the committee determines to have a high likelihood or demonstrated
history of increasing student literacy outcomes.
The committee may perform an evaluation under
this subdivision based on submissions from a vendor, but must independently
verify the validity of information provided by the vendor. The committee is
also strongly encouraged to evaluate available materials not submitted to the
department by a vendor.

(d) Create, maintain, and post annually on a publicly
available website a rankings list of all early literacy series and other items
the committee has evaluated. This includes items from each part of the rankings
list, items evaluated in the 2024-2025 school year, and any subsequent items
evaluated going forward. The committee shall denote on the list whether major
changes have been made to an early literacy series or other item on the list
since the early literacy series or other item was evaluated by the committee
and if the early literacy series or other item has not been evaluated since the
last ranking. The
rankings list created in this subdivision must align with the list of
evidence-based tier 1, classwide elementary reading curricula and materials
that are aligned with science of reading methods that research has shown to
improve literacy outcomes and help pupils achieve reading proficiency as
required under section 1280f of the revised school code, MCL 380.1280f.

(3) An individual on the committee shall recuse themselves
from evaluating early literacy series and other items that the individual has
helped create, that the individual would benefit from financially, or for which
the individual has any other conflict of interest.

(4) From the funds allocated in subsection (1), the
department shall make payments to districts and intermediate districts in an
amount determined by the department. The department shall not make payments
under this subsection until it has critically evaluated as many early literacy
series and other items from subsection (2) as possible. Payments under this
subsection must be made during the current fiscal year to support district
implementation in 2026-2027. The department shall use the rankings list described
in subsection (2) as the basis for how funding is allocated in subsection (1)
to districts and intermediate districts. Districts and intermediate districts
using higher-ranked literacy tools that are proven to increase student outcomes
shall receive more funding than districts and intermediate districts utilizing
lower-ranked literacy tools in both the base award and the per-pupil awards
described in this subsection. The department may determine that some districts
and intermediate districts will not receive funding under this section based on
the effectiveness of the early literacy series or other items being utilized by
the district or intermediate district. The department shall award funding under
this section using the following methodology:

(a) A base award equal to the amount necessary for the
district or intermediate district to implement the chosen early literacy series
or other item. The department may place a cap on the total award per district,
intermediate district, or early literacy series or other item and may choose
not to award funding if the early literacy series or other item is determined
to be ineffective or is determined to be less effective than other choices.

(b) A tiered per-pupil award based on the number of pupils in
membership at the district and intermediate district. The tiered per-pupil
award must provide a higher per-pupil payment to districts and intermediate
districts using higher-ranked early literacy series or other items as
determined under subsection (2). The department may choose not to award funding
if the early literacy series or other item is determined to be ineffective or
is determined to be less effective than other choices.

(5) From the funding allocated in subsection (1), the
department may pay an annual stipend of up to $8,000.00 for each member of the
committee for literacy achievement who is employed by or at a public
institution of higher education, a district, or an intermediate district. A
stipend must be commensurate with the committee member’s contribution to the
committee. Funding must be paid to the public institution of higher education,
the district, or the intermediate district where the committee member is employed,
and the public institution of higher education, the district, or the
intermediate district must then use funding received to award the stipend
directly to the individual committee member. A committee member who is not
employed by or at a public institution of higher education, a district, or an
intermediate district is not eligible to receive a stipend under this
subsection.

(6) To be eligible for funding under this section, a district
or intermediate district must apply in a form and manner determined by the
department. As a condition of receiving the funding, the district or intermediate
district must agree to provide to the department information twice a year, on
or before May 1 and October 1, on the early literacy series and other items
used for the previous and current school years, and the early literacy series
and other items to be used for the next school year. The early literacy series
and other items used by districts and intermediate districts must be added to
the annual rankings required under subsection (2).

(7) Except as otherwise provided in this section and
notwithstanding section 17b, the department shall make payments under this
section on a schedule determined by the department.

(8) Funds allocated under subsection (1) for 2025-2026 are a
work project appropriation, and any unexpended funds for 2025-2026 are carried
forward into 2026-2027. The purpose of the work project is to improve literacy
instructional practices. The estimated completion date of the work project is
September 30, 2029.

(9) In addition to the allocation under subsection (1), from
the state school aid fund money appropriated in section 11, there is allocated
an amount not to exceed $4,000,000.00 for 2025-2026 only to an intermediate
district in which the combined total number of pupils in membership of all of
its constituent districts is the fewest among all intermediate districts in
this state. All of the following apply to the funding under this subsection:

(a) Funding under this subsection must be used by the
intermediate district, in partnership with an association that represents
intermediate district administrators in this state, to implement all of the
following:

(i) Literacy essentials teacher and
principal training modules.

(ii) Face-to-face and online professional
learning on literacy essentials teacher and principal training modules for
literacy coaches, principals, and teachers.

(iii) The placement of regional lead literacy
coaches to facilitate professional learning for early literacy coaches.
Regional lead literacy coaches described in this subparagraph shall provide
support for new literacy coaches, building teachers, and administrators, and
shall facilitate regional data collection to evaluate the effectiveness of
statewide literacy coaches funded under this section.

(iv) A provision of $500,000.00 under this
subsection for literacy training, modeling, coaching, and feedback for district
principals or chief administrators, as applicable. The training described in
this subparagraph must use the pre-K and K to 3 essential instructional
practices in literacy created by the general education leadership network as
the framework for all training provided under this subparagraph.

(b) By not later than September 1 of each year, the
intermediate district described in this subsection, in consultation with grant
recipients, shall submit a report to the chairs of the senate and house
appropriations subcommittees on school aid, the chairs of the senate and house
standing committees responsible for education legislation, the house and senate
fiscal agencies, and the state budget director. The report described in this
subdivision must include student achievement results in English language arts
and survey results with feedback from parents and teachers regarding the
initiatives implemented under this subsection.

(c) Up to 2% of funds allocated under this subsection may be
used by the association representing intermediate district administrators that
is in partnership with the intermediate district specified in this subsection
to administer this subsection.

(10) In addition to the allocation under subsection (1), from
the state school aid fund money appropriated in section 11, there is allocated
an amount not to exceed $1,600,000.00 for 2025-2026 to expand the
implementation of the literacy and social, emotional, and behavioral components
of a multi-tiered system of supports, including positive behavioral
interventions and supports, using the Michigan Multi-Tiered System of Supports
Technical Assistance Center. Both of the following apply to funds allocated under
this subsection:

(a) The department shall use funds allocated under this
subsection, through an intermediate district, for the purpose of expanding the
statewide expertise, technical assistance, and implementation of the
multi-tiered system of supports, dyslexia expertise, and evidence-based
instructional practices grounded in the science of reading using the Michigan
Multi-Tiered System of Supports Technical Assistance Center, a nationally
recognized program. In addition, the department shall identify an intermediate
district to act as a fiscal agent for these funds.

(b) Up to 2% of funds allocated under this subsection may be
used by the intermediate district serving as the fiscal agent for these funds
to administer this subsection.

Sec.
39. (1) An eligible applicant receiving funds under section 32d shall submit an
application, in a form and manner prescribed by the department of lifelong
education, advancement, and potential, by a date specified by the department of
lifelong education, advancement, and potential in the immediately preceding
fiscal year. An eligible applicant is not required to amend the applicant’s
current accounting cycle or adopt this state’s fiscal year accounting cycle in
accounting for financial transactions under this section. The application must
include all of the following:

(a) The estimated total number of age-eligible children in
the community, as provided to the applicant by the department of lifelong
education, advancement, and potential utilizing the most recent population data
available from the American Community Survey conducted by the United States
Census Bureau. The department of lifelong education, advancement, and potential
shall ensure that it provides updated American Community Survey population data
at least once every 3 years.

(b) The estimated number of age-eligible children in the
community who are being served exclusively by Head Start programs
operating in the community.

(c) The number of children whom the applicant will have the
capacity to serve in each eligible great start readiness program option who
meet the age-eligible criteria of section 32d.

(2) The great start readiness target foundation amount for
2025-2026 is $10,650.00.

(3) After notification of funding allocations, an applicant
receiving funds under section 32d shall also submit an implementation plan for
approval, in a form and manner prescribed by the department of lifelong
education, advancement, and potential, by a date specified by the department of
lifelong education, advancement, and potential, that details how the applicant
complies with the program components established by the department of lifelong
education, advancement, and potential under section 32d.

(4) Subject to subsection (5), the initial allocation to each
eligible applicant under section 32d is equal to the sum of the following:

(a) The number of children in the current school year served
in a program determined by the department of lifelong education, advancement,
and potential to be a school-day program multiplied by the great start
readiness target foundation.

(b) The number of children in the current school year served
in a program determined by the department of lifelong education, advancement,
and potential to be a part-day program or a school-day blended with Head Start
multiplied by the great start readiness target foundation divided by 2.

(c) The total number of children in the current school year
served in a program determined by the department of lifelong education,
advancement, and potential to be an extended program multiplied by the great
start readiness target foundation multiplied by 1.2.

(d) The number of children in the current school year served
in a program determined by the department of lifelong education, advancement,
and potential to be an extended program blended with Head Start or a part-day
extended program multiplied by the great start readiness target foundation
multiplied by 0.6.

(5) Subject to subsection (6), if the calculations under
subsection (4) result in a total allocation exceeding the amount available as
allocated or appropriated under section 32d(2), initial allocations to each
eligible applicant under section 32d are calculated as the sum of the
following:

(a) An amount equal to the calculations described in
subsection (4) but using for those calculations the lesser of the number of
children served in the immediately preceding fiscal year or the number of
children the applicant has the capacity to serve in the current fiscal year
instead of the number of children served in the current fiscal year.

(b) An amount equal to the remaining available dollars after
calculations in subdivision (a) distributed proportionately to eligible
applicants where calculations under subdivision (a) are less than the amount
originally calculated under subsection (4).

(6) If the calculations under subsection (5) result in a
total allocation exceeding the amount available as allocated or appropriated
under section 32d(2), the initial allocation to each eligible applicant is the
amount calculated under subsection (4) prorated on an equal percentage basis.

(7) If, taking into account the total amount to be allocated
to the applicant as calculated under this section, an applicant determines that
it is able to include additional eligible children in the great start readiness
program without additional funds under section 32d, the applicant may include
additional eligible children but does not receive additional funding under
section 32d for those children.

(8) The department of lifelong education, advancement, and
potential shall review the program components under section 32d and under this
section at least biennially. The department of lifelong education, advancement,
and potential also shall convene a committee of internal and external
stakeholders at least once every 5 years to ensure that the funding structure
under this section reflects current system needs under section 32d.

Sec.
39a. (1) From the federal funds appropriated in section 11, there is allocated
for 2025-2026 to districts, intermediate districts, and other eligible entities
all available federal funding, estimated at $824,700,000.00, for the federal
programs under the no child left behind act of 2001, Public Law 107-110, or the
every student succeeds act, Public Law 114-95. These funds are allocated as
follows:

(a) An amount estimated at $1,200,000.00 for 2025-2026 to
provide students with drug- and violence-prevention programs and to implement
strategies to improve school safety, funded from DED-OESE, drug-free schools
and communities funds.

(b) An amount estimated at $100,000,000.00 for 2025-2026 for
the purpose of preparing, training, and recruiting high-quality teachers and
class size reduction, funded from DED-OESE, improving teacher quality funds.

(c) An amount estimated at $13,000,000.00 for 2025-2026 for
programs to teach English to limited English proficient (LEP) children, funded
from DED-OESE, language acquisition state grant funds.

(d) An amount estimated at $2,800,000.00 for 2025-2026 for
rural and low-income schools, funded from DED‑OESE, rural and low income
school funds.

(e) An amount estimated at $585,000,000.00 for 2025-2026 to
provide supplemental programs to enable educationally disadvantaged children to
meet challenging academic standards, funded from DED-OESE, title I,
disadvantaged children funds.

(f) An amount estimated at $9,200,000.00 for 2025-2026 for
the purpose of identifying and serving migrant children, funded from DED-OESE,
title I, migrant education funds.

(g) An amount estimated at $40,400,000.00 for 2025-2026 for
the purpose of providing high-quality extended learning opportunities, after
school and during the summer, for children in low-performing schools, funded
from DED-OESE, twenty-first century community learning center funds.

(h) An amount estimated at $14,000,000.00 for 2025-2026 to
help support local school improvement efforts, funded from DED-OESE, title I,
local school improvement grants.

(i) An amount estimated at $55,000,000.00 for 2025-2026 to
improve the academic achievement of students, funded from DED-OESE, title IV, student
support and academic enrichment grants.

(j) An amount estimated at $3,100,000.00 for 2025-2026 for
literacy programs that advance literacy skills for students from birth through
grade 12, including, but not limited to, English-proficient students and
students with disabilities, funded from DED-OESE, striving readers
comprehensive literacy program.

(k) An amount estimated at $1,000,000.00 for 2025-2026 for
grants to support and demonstrate innovative partnerships to train school-based
mental health service providers, funded from DED-OESE, mental health service
professional demonstration grant program.

(2) From the federal funds appropriated in section 11, there
is allocated to districts, intermediate districts, and other eligible entities
all available federal funding, estimated at $66,415,000.00 for 2025-2026 for
the following programs that are funded by federal grants:

(a) An amount estimated at $3,000,000.00 for 2025-2026 to
provide services to homeless children and youth, funded from DED-OVAE, homeless
children and youth funds.

(b) An amount estimated at $30,000,000.00 for 2025-2026 for
providing career and technical education services to pupils, funded from
DED-OVAE, basic grants to states.

(c) An amount estimated at $14,000,000.00 for 2025-2026 for
the Michigan charter school subgrant program, funded from DED–OII, public
charter schools program funds.

(d) An amount estimated at $17,700,000.00 for 2025-2026 for
the purpose of promoting and expanding high-quality preschool services, funded
from HHS–OCC, preschool development funds.

(e) An amount estimated at $1,715,000.00 for 2025-2026 for
the purpose of addressing priority substance abuse treatment, prevention, and
mental health needs, funded from HHS-SAMHSA.

(3) The department, or, for subsections (1)(g) and (2)(d),
the department of lifelong education, advancement, and potential, shall
distribute all federal funds allocated under this section in accordance with
federal law and with flexibility provisions outlined in Public Law 107-116, and
in the education flexibility partnership act of 1999, Public Law 106-25.
Notwithstanding section 17b, the department or the department of lifelong
education, advancement, and potential, as applicable, shall make payments of federal
funds to districts, intermediate districts, and other eligible entities under
this section on a schedule determined by the department.

(4) For the purposes of applying for federal grants
appropriated under this article, the department, or, for subsections (1)(g) and
(2)(d), the department of lifelong education, advancement, and potential, shall
allow an intermediate district to submit a consortium application on behalf of
2 or more districts with the agreement of those districts as appropriate
according to federal rules and guidelines.

(5) For the purposes of funding federal title I grants under
this article, in addition to any other federal grants for which the strict
discipline academy is eligible, the department, or, for subsections (1)(g) and
(2)(d), the department of lifelong education, advancement, and potential, shall
allocate to a strict discipline academy out of title I, part A an amount equal
to what the strict discipline academy would have received if included and
calculated under title I, part D, or what it would receive under the formula
allocation under title I, part A, whichever is greater.

(6) As used in this section:

(a) “DED” means the United States Department of Education.

(b) “DED-OESE” means the DED Office of Elementary and
Secondary Education.

(c) “DED-OII” means the DED Office of Innovation and
Improvement.

(d) “DED-OVAE” means the DED Office of Vocational and Adult
Education.

(e) “HHS” means the United States Department of Health and
Human Services.

(f) “HHS-OCC” means the HHS Office of Child Care.

(g) “HHS-SAMHSA” means the HHS Substance Abuse and Mental
Health Services Project.

Sec.
41. (1) For a district to be eligible to receive funding under this section,
the district must administer to English language learners the English language
proficiency assessment known as the “WIDA ACCESS for English language learners”
or the “WIDA Alternate ACCESS”. From the state school aid fund money
appropriated in section 11, there is allocated an amount not to exceed
$62,732,600.00 for 2025-2026 for payments to eligible districts for services
for English language learners who have been administered the WIDA ACCESS for
English language learners. Services for English language learners
under this section may include software used to assist learning.

(2) The department shall distribute funding allocated under
subsection (1) to eligible districts based on the number of full-time
equivalent English language learners as follows:

(a) $2,329.00 per full-time equivalent English language
learner who has been assessed under the WIDA ACCESS for English language
learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate
ACCESS composite score between 1.0 and 1.9, or less, as applicable to each
assessment. It is the intent of the legislature to increase this amount until
it reaches 75% of the target foundation allowance.

(b) $1,608.00 per full-time equivalent English language
learner who has been assessed under the WIDA ACCESS for English language
learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate
ACCESS composite score between 2.0 and 2.9, or less, as applicable to each
assessment. It is the intent of the legislature to increase this amount until
it reaches 50% of the target foundation allowance.

(c) $263.00 per full-time equivalent English language learner
who has been assessed under the WIDA ACCESS for English language learners or
the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite
score between 3.0 and 3.9, or less, as applicable to each assessment. It is the
intent of the legislature to increase this amount until it reaches 35% of the
target foundation allowance.

(3) If funds allocated under subsection (1) are insufficient
to fully fund the payments as prescribed under subsection (2), the department
shall prorate payments on an equal percentage basis, with the same percentage
proration applied to all funding categories.

(4) By October 15 of the fiscal year following the receipt of
funding under subsection (1), each district receiving funds under subsection
(1) shall submit to the department a report, not to exceed 10 pages, on the
usage by the district of funds under subsection (1) in a form and manner
determined by the department, including a brief description of each program
conducted or services performed by the district using funds under subsection
(1) and the amount of funds under subsection (1) allocated to each of those
programs or services. If a district does not comply with this subsection, the
department shall withhold an amount equal to the December payment due under
this section until the district complies with this subsection. If the district
does not comply with this subsection by the end of the fiscal year, the
withheld funds are forfeited to the state school aid fund.

(5) To receive funds under subsection (1), a district must
allow access for the department or the department’s designee to audit all
records related to the program for which it receives those funds. The district
shall reimburse this state for all disallowances found in the audit.

(6) Beginning July 1, 2020, and every 3 years thereafter, the
department shall review the per-pupil distribution under subsection (2), to
ensure that funding levels are appropriate and make recommendations for
adjustments to the members of the senate and house subcommittees on K to 12
school aid appropriations.

(7) The department shall establish English language learner
program models that establish a minimum number of minutes per week that
districts must provide direct English language development instruction for
students according to the student’s proficiency levels. These models must be
compliant with federal requirements related to English language learner program
services. To be considered an eligible recipient of funding under this section,
a district must agree to meet or exceed the minimum number of minutes per week,
as determined by the department, that the district provides direct English
language development instruction.

Sec.
41b. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2024-2025 only an amount not to exceed $2,000,000.00 for KEYS
Grace Academy to, in partnership with Kalasho Education and Youth Services in
Warren, provide English-as-a-second-language services, provide early childhood
learning, improve progress toward high school graduation attainment, and
provide K to 12 education-support services to legal immigrants.

(2)
The funds allocated in this section are a work project appropriation, and any
unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose
of the work project is to continue to provide English-as-a-second-language
services, provide early childhood learning, improve progress toward high school
graduation attainment, and provide K to 12 education-support services to legal
immigrants. The estimated completion date of the work project is September 30,
2026.

Sec.
51a. (1) From the state school aid fund money in section 11, there is allocated
an amount not to exceed $2,028,696,100.00 for 2024-2025 and there is allocated
an amount not to exceed $2,219,596,100.00 for 2025-2026 from state sources and
all available federal funding under sections 1411 to 1419 of part B of the
individuals with disabilities education act, 20 USC 1411 to 1419, estimated at $450,000,000.00
for 2024-2025 and $500,000,000.00 for 2025-2026, plus any carryover federal
funds from previous year appropriations. The allocations under this subsection
are for the purpose of reimbursing districts and intermediate districts for
special education programs, services, and special education personnel as
prescribed in article 3 of the revised school code, MCL 380.1701 to 380.1761;
net tuition payments made by intermediate districts to the Michigan Schools for
the Deaf and Blind; and special education programs and services for pupils who
are eligible for special education programs and services according to statute
or rule. For meeting the costs of special education programs and services not
reimbursed under this article, a district or intermediate district may use
money in general funds or special education funds, not otherwise restricted, or
contributions from districts to intermediate districts, tuition payments, gifts
and contributions from individuals or other entities, or federal funds that may
be available for this purpose, as determined by the intermediate district plan
prepared under article 3 of the revised school code, MCL 380.1701 to 380.1761.
Notwithstanding section 17b, the department shall make payments of federal
funds to districts, intermediate districts, and other eligible entities under
this section on a schedule determined by the department.

(2) From the funds allocated under subsection (1), there is
allocated the amount necessary, estimated at $441,400,000.00 for 2024-2025 and
$492,400,000.00 for 2025-2026, for payments toward reimbursing districts and
intermediate districts for 28.6138% of total approved costs of special
education, excluding costs reimbursed under section 53a, and 70.4165% of total
approved costs of special education transportation.

(3) If the department determines that the amount allocated
for a fiscal year to a district or intermediate district under subsection (2)
is insufficient to fulfill the specified percentages in subsection (2), the
department shall pay the shortfall to the district or intermediate district
during the fiscal year beginning on the October 1 following the determination.
If the department determines that the amount allocated for a fiscal year to a
district or intermediate district under subsection (2) exceeds the sum of the
amount necessary to fulfill the specified percentages in subsection (2), the
department shall deduct the amount of the excess from the district’s or
intermediate district’s payments under this article for the fiscal year
beginning on the October 1 following the determination.

(4) State funds are allocated on a total approved cost basis.
Federal funds are allocated under applicable federal requirements.

(5) From the amount allocated in subsection (1), there is
allocated an amount not to exceed $3,200,000.00 for 2024-2025 and 2025-2026 to
reimburse 100% of the net increase in necessary costs incurred by a district or
intermediate district in implementing the revisions in the administrative rules
for special education that became effective on July 1, 1987. As used in this subsection,
“net increase in necessary costs” means the necessary additional costs incurred
solely because of new or revised requirements in the administrative rules minus
cost savings permitted in implementing the revised rules. The department shall
determine net increase in necessary costs in a manner specified by the
department.

(6) For purposes of this section and sections 51b to 58, all
of the following apply:

(a) “Total approved costs of special education” are
determined in a manner specified by the department and may include indirect
costs, but must not exceed 115% of approved direct costs for section 52 and
section 53a programs. The total approved costs include salary and other
compensation for all approved special education personnel for the program,
including payments for Social Security and Medicare and public school employee
retirement system contributions. The total approved costs do not include
salaries or other compensation paid to administrative personnel who are not
special education personnel as that term is defined in section 6 of the revised
school code, MCL 380.6. Costs reimbursed by federal funds, other than those
federal funds included in the allocation made under this article, are not
included. Special education approved personnel not utilized full time in the
evaluation of students or in the delivery of special education programs,
ancillary, and other related services are reimbursed under this section only
for that portion of time actually spent providing these programs and services,
with the exception of special education programs and services provided to youth
placed in child caring institutions or juvenile detention programs approved by
the department to provide an on-grounds education program.

(b) Reimbursement for ancillary and other related services,
as that term is defined by R 340.1701c of the Michigan Administrative Code, is
not provided when those services are covered by and available through private
group health insurance carriers or federal reimbursed program sources unless
the department and district or intermediate district agree otherwise and that
agreement is approved by the state budget director. Expenses, other than the
incidental expense of filing, must not be borne by the parent. In addition, the
filing of claims must not delay the education of a pupil. A district or
intermediate district is responsible for payment of a deductible amount and for
an advance payment required until the time a claim is paid.

(c) If an intermediate district purchases a special education
pupil transportation service from a constituent district that was previously
purchased from a private entity; if the purchase from the constituent district
is at a lower cost, adjusted for changes in fuel costs; and if the cost shift
from the intermediate district to the constituent does not result in any net
change in the revenue the constituent district receives from payments under
sections 22b and 51c, then upon application by the intermediate district,
the department shall direct the intermediate district to continue to report the
cost associated with the specific identified special education pupil
transportation service and shall adjust the costs reported by the constituent
district to remove the cost associated with that specific service.

(7) A pupil who is enrolled in a full-time special education
program conducted or administered by an intermediate district or a pupil who is
enrolled in the Michigan Schools for the Deaf and Blind is not included in the
membership count of a district, but is counted in membership in the
intermediate district of residence.

(8) Special education personnel transferred from 1 district
to another to implement the revised school code are entitled to the rights,
benefits, and tenure to which the individual would otherwise be entitled had
that individual been employed by the receiving district originally.

(9) If a district or intermediate district uses money
received under this section for a purpose other than the purpose or purposes
for which the money is allocated, the department may require the district or
intermediate district to refund the amount of money received. The department
shall deposit money that is refunded in the state treasury to the credit of the
state school aid fund.

(10) From the funds allocated in subsection (1), there is
allocated the amount necessary, estimated at $1,600,000.00 for 2024-2025 and
estimated at $1,600,000.00 for 2025-2026, to pay the foundation allowances for
pupils described in this subsection. The department shall calculate the
allocation to a district under this subsection by multiplying the number of
pupils described in this subsection who are counted in membership in the
district times the sum of the foundation allowance under section 20 of the pupil’s
district of residence, plus the amount of the district’s per-pupil allocation
under section 20m, not to exceed the target foundation allowance for the
current fiscal year, or, for a pupil described in this subsection who is
counted in membership in a district that is a public school academy, times an
amount equal to the amount per membership pupil under section 20(6). The
department shall calculate the allocation to an intermediate district under
this subsection in the same manner as for a district, using the foundation
allowance under section 20 of the pupil’s district of residence not to exceed
the target foundation allowance for the current fiscal year and that district’s
per-pupil allocation under section 20m. This subsection applies to all of the
following pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district
who are not special education pupils and are served by the intermediate
district in a juvenile detention or child caring facility.

(c) Pupils with an emotional impairment counted in membership
by an intermediate district and provided educational services by the department
of health and human services.

(11) If it is determined that funds allocated under
subsection (2) or (10) or under section 51c will not be expended, funds up to
the amount necessary and available may be used to supplement the allocations
under subsection (2) or (10) or under section 51c to fully fund those
allocations. After payments under subsections (2) and (10) and section 51c, the
department shall expend the remaining funds from the allocation in subsection
(1) in the following order:

(a) One hundred percent of the reimbursement required under
section 53a.

(b) One hundred percent of the reimbursement required under
subsection (5).

(c) One hundred percent of the payment required under section
54.

(d) One hundred percent of the payments under section 56.

(12) The allocations under subsections (2) and (10) are
allocations to intermediate districts only and are not allocations to
districts, but instead are calculations used only to determine the state
payments under section 22b.

(13) If a public school academy that is not a cyber school,
as that term is defined in section 551 of the revised school code, MCL 380.551,
enrolls under this section a pupil who resides outside of the intermediate
district in which the public school academy is located and who is eligible for
special education programs and services according to statute or rule, or who is
a child with a disability, as that term is defined under the individuals with
disabilities education act, Public Law 108-446, the intermediate district in
which the public school academy is located and the public school academy shall
enter into a written agreement with the intermediate district in which the
pupil resides for the purpose of providing the pupil with a free appropriate
public education, and the written agreement must include at least an agreement
on the responsibility for the payment of the added costs of special education
programs and services for the pupil. If the public school academy that enrolls
the pupil does not enter into an agreement under this subsection, the public
school academy shall not charge the pupil’s resident intermediate district or
the intermediate district in which the public school academy is located the
added costs of special education programs and services for the pupil, and the
public school academy is not eligible for any payouts based on the funding
formula outlined in the resident or nonresident intermediate district’s plan.
If a pupil is not enrolled in a public school academy under this subsection, the
provision of special education programs and services and the payment of the
added costs of special education programs and services for a pupil described in
this subsection are the responsibility of the district and intermediate
district in which the pupil resides.

(14) For the purpose of receiving its federal allocation
under part B of the individuals with disabilities education act, Public Law
108-446, a public school academy that is a cyber school, as that term is
defined in section 551 of the revised school code, MCL 380.551, and is in
compliance with section 553a of the revised school code, MCL 380.553a, directly
receives the federal allocation under part B of the individuals with
disabilities education act, Public Law 108-446, from the intermediate district in
which the cyber school is located, as the subrecipient. If the intermediate
district does not distribute the funds described in this subsection to the
cyber school by the part B application due date of July 1, the department may
distribute the funds described in this subsection directly to the cyber school
according to the formula prescribed in 34 CFR 300.705 and 34 CFR 300.816.
Beginning July 1, 2021, this subsection is subject to section 8c. It is the
intent of the legislature that the immediately preceding sentence apply
retroactively and is effective July 1, 2021.

(15) For a public school academy that is a cyber school, as
that term is defined in section 551 of the revised school code, MCL 380.551,
and is in compliance with section 553a of the revised school code, MCL
380.553a, that enrolls a pupil under this section, the intermediate district in
which the cyber school is located shall ensure that the cyber school complies
with sections 1701a, 1703, 1704, 1751, 1752, 1756, and 1757 of the revised
school code, MCL 380.1701a, 380.1703, 380.1704, 380.1751, 380.1752, 380.1756,
and 380.1757; applicable rules; and the individuals with disabilities education
act, Public Law 108-446. Beginning July 1, 2021, this subsection is subject to
section 8c. It is the intent of the legislature that the immediately preceding
sentence apply retroactively and is effective July 1, 2021.

(16) For the purposes of this section, the department or the
center shall only require a district or intermediate district to report
information that is not already available from the financial information
database maintained by the center.

Sec.
51c. As required by the court in the consolidated cases known as Durant v State of Michigan, 456 Mich 175 (1997), from the
allocation under section 51a(1), there is allocated for 2024-2025 and for
2025-2026 the amount necessary, estimated at $993,100,000.00 for 2024-2025 and
$1,107,900,000.00 for 2025-2026, for payments to reimburse districts for
28.6138% of total approved costs of special education excluding costs
reimbursed under section 53a, and 70.4165% of total approved costs of special
education transportation. Funds allocated under this section that are not
expended in the fiscal year for which they were allocated, as determined by the
department, may be used to supplement the allocations under sections 22a and
22b to fully fund those allocations for the same fiscal year.

Sec.
51d. (1) From the federal funds appropriated in section 11, there is allocated
for 2025-2026 all available federal funding, estimated at $83,000,000.00, for
special education programs and services that are funded by federal grants. The
department shall distribute all federal funds allocated under this section in
accordance with federal law. Notwithstanding section 17b, the department shall
make payments of federal funds to districts, intermediate districts, and other
eligible entities under this section on a schedule determined by the
department.

(2) From the federal funds allocated under subsection (1),
the following amounts are allocated:

(a) For 2025-2026, an amount estimated at $14,000,000.00 for
handicapped infants and toddlers, funded from DED-OSERS, handicapped infants
and toddlers funds.

(b) For 2025-2026, an amount estimated at $14,000,000.00 for
preschool grants under Public Law 94-142, funded from DED-OSERS, handicapped
preschool incentive funds.

(c) For 2025-2026, an amount estimated at $55,000,000.00 for
special education programs funded by DED‑OSERS, handicapped program,
individuals with disabilities act funds.

(3) As used in this section, “DED-OSERS” means the United
States Department of Education Office of Special Education and Rehabilitative
Services.

Sec.
51e. (1) From the allocation under section 51a(1), there is allocated for the
amount necessary, estimated at $503,000,000.00 for 2024-2025 and
$528,100,000.00 for 2025-2026, for payments to districts and intermediate
districts for 100% of foundation allowance costs associated with special
education pupils.

(2) The department shall calculate the amount allocated to a
district under this section by multiplying the district’s special education
pupil membership, excluding pupils described in section 51a(11), times 100% of
the foundation allowance under section 20 of the pupil’s district of residence,
plus 100% of the amount of the district’s per-pupil allocation under section
20m, not to exceed 100% of the target foundation allowance for the current
fiscal year, or, for a special education pupil in membership in a district that
is a public school academy, times an amount equal to 100% of the amount per
membership pupil calculated under section 20(6). For an intermediate district,
the amount allocated under this subsection is an amount per special education
membership pupil, excluding pupils described in section 51a(11), and is
calculated in the same manner as for a district, using 100% of the foundation
allowance under section 20 of the pupil’s district of residence, not to exceed
100% of the target foundation allowance for the current fiscal year, and 100%
of that district’s per-pupil allocation under section 20m.

Sec.
51g. From the general fund money appropriated in section 11, $3,000,000.00 is
allocated for 2025-2026 to an association for administrators of special
education services to develop content for use by special education students,
teachers, and others. Any content that is developed as described in this
section must be accessible throughout this state. Funds received by an
association under this section may be used to support the development of
assessment tools to measure the needs of students with special education needs
in remote learning environments and the effectiveness of various educational
methods and tools, in collaboration with the department. Funds under this
section may also be utilized to identify any available federal funds for
research related to special education in remote learning.

Sec.
53a. (1) For districts, reimbursement for pupils described in subsection (2) is
100% of the total approved costs of operating special education programs and
services approved by the department and included in the intermediate district
plan adopted under article 3 of the revised school code, MCL 380.1701 to
380.1761, minus the district’s foundation allowance calculated under section 20
and minus the district’s per-pupil allocation under section 20m. For
intermediate districts, the department shall calculate reimbursement for pupils
described in subsection (2) in the same manner as for a district, using the
foundation allowance under section 20 of the pupil’s district of residence, not
to exceed the target foundation allowance under section 20 for the current
fiscal year plus the amount of the district’s per-pupil allocation under
section 20m.

(2) Reimbursement under subsection (1) is for the following
special education pupils:

(a) Pupils assigned to a district or intermediate district
through the community placement program of the courts or a state agency, if the
pupil was a resident of another intermediate district at the time the pupil
came under the jurisdiction of the court or a state agency.

(b) Pupils who are residents of institutions operated by the
department of health and human services.

(c) Pupils who are former residents of department of
community health institutions for the developmentally disabled who are placed
in community settings other than the pupil’s home.

(d) Pupils enrolled in a department-approved on-grounds
educational program longer than 180 days, but not longer than 233 days, at a
residential child care institution, if the child care institution offered in
1991-92 an on‑grounds educational program longer than 180 days but not
longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose
of seeking a suitable home, if the parent does not reside in the same
intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly
attributable to educational programs for pupils described in subsection (2),
and that would not have been incurred if the pupils were not being educated in
a district or intermediate district, are reimbursable under this section.

(4) The costs of transportation are funded under this section
and are not reimbursed under section 58.

(5) The department shall not allocate more than
$10,500,000.00 of the allocation for 2025-2026 in section 51a(1) under
this section.

Sec.
54. Each intermediate district receives an amount per pupil for each pupil in
attendance at the Michigan Schools for the Deaf and Blind. The amount is
proportionate to the total instructional cost at each school. The department
shall not allocate more than $1,688,000.00 of the allocation for 2025-2026 in
section 51a(1) under this section.

Sec.
54d. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $23,670,700.00 for 2025-2026 to
intermediate districts for the purpose of providing state early on services
programs for children from birth to 3 years of age with a developmental delay
or a disability, or both, and their families, as described in the early on
Michigan state plan, as approved by the department of lifelong education,
advancement, and potential.

(2) To be eligible to receive grant funding under this
section, each intermediate district must apply in a form and manner determined
by the department of lifelong education, advancement, and potential.

(3) The grant funding allocated under this section must be
used to increase early on services and resources available to children that
demonstrate developmental delays to help prepare them for success as they enter
school. State early on services include evaluating and providing early
intervention services for eligible infants and toddlers and their families to
address developmental delays, including those affecting physical, cognitive,
communication, adaptive, social, or emotional development. Grant funds must not
be used to supplant existing services that are currently being provided.

(4) The department of lifelong education, advancement, and
potential shall distribute the funds allocated under subsection (1) to
intermediate districts according to the department of lifelong education,
advancement, and potential’s early on funding formula utilized to distribute
the federal award to Michigan under part C of the individuals with disabilities
education act, Public Law 108-446. Funds received under this section must not
supplant existing funds or resources allocated for early on early intervention
services. An intermediate district receiving funds under this section shall
maximize the capture of Medicaid funds to support early on early intervention
services to the extent possible.

(5) Each intermediate district that receives funds under this
section shall report data and other information to the department of lifelong
education, advancement, and potential in a form, manner, and frequency
prescribed by the department of lifelong education, advancement, and potential
to allow for monitoring and evaluation of the program and to ensure that the
children described in subsection (1) received appropriate levels and types of
services delivered by qualified personnel, based on the individual needs of the
children and their families.

(6) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this section on
a schedule determined by the department of lifelong education, advancement, and
potential.

(7) Grant funds awarded and allocated to an intermediate
district under this section must be expended by the grant recipient before June
30 of the fiscal year immediately following the fiscal year in which the funds
were received.

Sec.
55. (1) From the general fund money appropriated in section 11, there is
allocated an amount not to exceed $500,000.00 for 2024-2025 only to the
Conductive Learning Center operating in cooperation with Grand Valley State
University. This funding must be used to support the operational costs of the
conductive education model taught at the Conductive Learning Center to maximize
the independence and mobility of children and adults with neuromotor
disabilities. The conductive education model funded under this section must be
based on the concept of neuroplasticity and the ability of people to learn and
improve when they are motivated, regardless of the severity of their
disability.

(2) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
56. (1) For the purposes of this section:

(a) “Membership” means for a particular fiscal year the total
membership of the intermediate district and the districts constituent to the
intermediate district, except that if a district has elected not to come under
part 30 of the revised school code, MCL 380.1711 to 380.1741, membership of the
district is not included in the membership of the intermediate district.

(b) “Millage levied” means the millage levied for special
education under part 30 of the revised school code, MCL 380.1711 to 380.1741,
including a levy for debt service obligations.

(c) “Taxable value” means the total taxable value of the
districts constituent to an intermediate district, except that if a district
has elected not to come under part 30 of the revised school code, MCL 380.1711
to 380.1741, taxable value of the district is not included in the taxable value
of the intermediate district.

(2) From the allocation under section 51a(1), there is
allocated an amount not to exceed $40,008,100.00 for 2024-2025 and
$40,008,100.00 for 2025-2026 to reimburse intermediate districts levying
millages for special education under part 30 of the revised school code, MCL
380.1711 to 380.1741. The purpose, use, and expenditure of the reimbursement
are limited as if the funds were generated by these millages and governed by
the intermediate district plan adopted under article 3 of the revised school
code, MCL 380.1701 to 380.1761. As a condition of receiving funds under this
section, an intermediate district distributing any portion of special education
millage funds to its constituent districts must submit for departmental
approval and implement a distribution plan.

(3) Except as otherwise provided in this subsection,
reimbursement for those millages levied in 2023-2024 is made in 2024-2025 at an
amount per 2023-2024 membership pupil computed by subtracting from $260,200.00
the 2023-2024 taxable value behind each membership pupil and multiplying the
resulting difference by the 2023-2024 millage levied, and then subtracting from
that amount the 2023-2024 local community stabilization share revenue for
special education purposes and 2023-2024 tax increment revenues captured by a
brownfield redevelopment authority created under the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each membership
pupil for reimbursement of personal property exemption loss under the local
community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362,
and reimbursements paid under section 26d for tax increment revenues captured
by a brownfield redevelopment authority under the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the
calculation described in the previous sentence only, for an intermediate
district receiving funds under this section and section 62, reimbursements paid
under section 26d must be multiplied by the ratio of special education millage
levied, as defined in this section, and the sum of special education millage
levied and vocational-technical education millage levied, as defined in section
62. Reimbursement in 2024-2025 for an intermediate district whose 2017-2018
allocation was affected by the operation of subsection (5) is an amount equal
to 102.5% of the 2017-2018 allocation to that intermediate district.

(4) Except as otherwise provided in this subsection,
reimbursement for those millages levied in 2024-2025 is made in 2025-2026 at an
amount per 2024-2025 membership pupil computed by subtracting from $278,500.00
the 2024-2025 taxable value behind each membership pupil and multiplying the
resulting difference by the 2024-2025 millage levied, and then subtracting from
that amount the 2024-2025 local community stabilization share revenue for
special education purposes and 2024-2025 tax increment revenues captured by a
brownfield redevelopment authority created under the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each membership
pupil for reimbursement of personal property exemption loss under the local
community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362,
and reimbursements paid under section 26d for tax increment revenues captured
by a brownfield redevelopment authority under the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the
calculation described in the previous sentence only, for an intermediate
district receiving funds under this section and section 62, reimbursements paid
under section 26d must be multiplied by the ratio of special education millage
levied, as defined in this section, and the sum of special education millage
levied and vocational-technical education millage levied, as defined in section
62. Reimbursement in 2025-2026 for an intermediate district whose 2017-2018
allocation was affected by the operation of subsection (5) is an amount equal
to 102.5% of the 2017-2018 allocation to that intermediate district.

(5) The department shall ensure that the amount paid to a
single intermediate district under subsection (2) does not exceed 62.9% of the
total amount allocated under subsection (2).

(6) The department shall ensure that the amount paid to a
single intermediate district under subsection (2) is not less than 75% of the
amount allocated to the intermediate district under subsection (2) for the
immediately preceding fiscal year.

(7) From the allocation under section 51a(1), there is
allocated an amount not to exceed $34,200,000.00 for 2024-2025 and 2025-2026 to
provide payments to intermediate districts levying millages for special
education under part 30 of the revised school code, MCL 380.1711 to 380.1741.
The purpose, use, and expenditure of the payments under this subsection are
limited as if the funds were generated by these millages and governed by the
intermediate district plan adopted under article 3 of the revised school code,
MCL 380.1701 to 380.1761. The department shall provide a payment under this
subsection to each intermediate district described in this subsection as
follows:

(a) For 2024-2025 and 2025-2026, except as otherwise provided
in this subsection, for an intermediate district with a 3-year average special
education millage revenue per pupil in the immediately preceding fiscal year
that is less than $251.00 and that is levying at least 46.2% but less than
60.0% of its maximum millage rate allowed under section 1724a of the revised
school code, MCL 380.1724a, an amount computed by subtracting from $251.00 the
3-year average special education millage revenue per pupil in the immediately
preceding fiscal year and, only if the millage levied by the intermediate
district is less than 1, multiplying that amount by the number of mills levied
divided by 1, and then multiplying that amount by the 3-year average membership
in the immediately preceding fiscal year, and then subtracting from that amount
the amount allocated under subsection (2) for the current fiscal year. If the
calculation under this subdivision results in an amount below zero, there is no
payment under this subdivision.

(b) For 2024-2025 and 2025-2026, except as otherwise provided
in this subsection, for an intermediate district with a 3-year average special
education millage revenue per pupil in the immediately preceding fiscal year
that is less than $296.00 and that is levying at least 60.0% of its maximum
millage rate allowed under section 1724a of the revised school code, MCL
380.1724a, an amount computed by subtracting from $296.00 the 3-year average
special education millage revenue per pupil in the immediately preceding fiscal
year, and, only if the millage levied by the intermediate district is less than
1, multiplying that amount by the number of mills levied divided by 1, and then
multiplying that amount by the 3-year average membership in the immediately
preceding fiscal year, and then subtracting from that amount the amount
allocated under subsection (2) for the current fiscal year. If the calculation
under this subdivision results in an amount below zero, there is no payment
under this subdivision.

(8) After making allocations to eligible intermediate
districts under subsections (3), (4), and (7), if funds remain unallocated from
the allocations under subsections (2) and (7), the department must allocate
remaining funds to intermediate districts proportional to the amounts allocated
to intermediate districts under subsections (3) and (4).

(9) As used in subsection (7):

(a) “3-year average membership” means the 3-year average
pupil membership for each of the 3 most recent fiscal years.

(b) “3-year average special education millage revenue per
pupil” means the 3-year average taxable value per mill levied behind each
membership pupil for each of the 3 most recent fiscal years multiplied by the
millage levied in the most recent fiscal year.

Sec.
61a. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $41,733,800.00 for 2025-2026 to reimburse
on an added cost basis districts, except for a district that served as the
fiscal agent for a vocational education consortium in the 1993-94 school year
and that has a foundation allowance as calculated under section 20 greater than
the target foundation allowance under that section, and secondary area
vocational-technical education centers for secondary-level career and technical
education programs according to rules approved by the superintendent.
Applications for participation in the programs must be submitted in the form
prescribed by the department. The department shall determine the added cost for
each career and technical education program area. The department shall
prioritize the allocation of added cost funds based on the capital and program
expenditures needed to operate the career and technical education programs
provided; the number of pupils enrolled; the advancement of pupils through the
instructional program; the existence of an articulation agreement with at least
1 postsecondary institution that provides pupils with opportunities to earn
postsecondary credit during the pupil’s participation in the career and
technical education program and transfers those credits to the postsecondary
institution upon completion of the career and technical education program; and
the program rank in student placement, job openings, and wages, and shall
ensure that the allocation does not exceed 75% of the added cost of any
program. Notwithstanding any rule or department determination to the contrary,
when determining a district’s allocation or the formula for making allocations
under this section, the department shall include the participation of pupils in
grade 9 in all of those determinations and in all portions of the formula. With
the approval of the department, the board of a district maintaining a secondary
career and technical education program may offer the program for the period
from the close of the school year until September 1. The program shall use
existing facilities and must be operated as prescribed by rules promulgated by
the superintendent.

(2) Except for a district that served as the fiscal agent for
a vocational education consortium in the 1993-94 school year, the department
shall reimburse districts and intermediate districts for local career and
technical education administration, shared time career and technical education
administration, and career education planning district career and technical
education administration. The superintendent shall adopt guidelines for the
definition of what constitutes administration and shall make reimbursement
pursuant to those guidelines. The department shall not distribute more than
$800,000.00 of the allocation in subsection (1) under this subsection.

(3) A career and technical education program funded under
this section may provide an opportunity for participants who are eligible to be
funded under section 107 to enroll in the career and technical education
program funded under this section if the participation does not occur during
regular school hours.

Sec.
61b. (1) From the state school aid fund money appropriated under section 11,
there is allocated for 2025-2026 an amount not to exceed $8,368,000.00 for CTE
early middle college and CTE dual enrollment programs authorized under this
section and for planning grants for the development or expansion of CTE early
middle college programs. The purpose of these programs is to increase the
number of Michigan residents with high-quality degrees or credentials, and to
increase the number of students who are college and career ready upon high
school graduation.

(2) From the funds allocated under subsection (1), the
department shall allocate an amount as determined under this subsection to each
intermediate district serving as a fiscal agent for state-approved CTE early
middle college and CTE dual enrollment programs in each of the career education
planning districts identified by the department. An intermediate district shall
not use more than 5% of the funds allocated under this subsection for
administrative costs for serving as the fiscal agent.

(3) To be an eligible fiscal agent, an intermediate district
must agree to do all of the following in a form and manner determined by the
department:

(a) Distribute funds to eligible CTE early middle college and
CTE dual enrollment programs in a career education planning district as
described in this section.

(b) Collaborate with the career and educational advisory
council in the workforce development board service delivery area to develop 1
regional strategic plan under subsection (4) that aligns CTE programs and
services into an efficient and effective delivery system for high school
students. The department will align career education planning districts,
workforce development board service delivery areas, and intermediate districts
for the purpose of creating 1 regional strategic plan for each workforce development
board service delivery area.

(c) Implement a regional process to rank career clusters in
the workforce development board service delivery area as described under
subsection (4). Regional processes must be approved by the department before
the ranking of career clusters.

(d) Report CTE early middle college and CTE dual enrollment
program and student data and information as prescribed by the department and
the center.

(e) The local education agency responsible for student
reporting in the Michigan student data system (MSDS) will report the total
number of college credits the student earned, at the time of high school
graduation, as determined by the department and the center.

(f) The local education agency will report each award outcome
in the Michigan student data system (MSDS) that the CTE early middle college
student attained. For purposes of this subsection, an on-track CTE early middle
college graduate is a graduate who obtained their high school diploma and at
least 1 of the following:

(i) An associate degree.

(ii) 60 transferable college credits.

(iii) Professional certification.

(iv) A Michigan Early Middle College
Association certificate.

(v) Participation in a registered
apprenticeship.

(4) A regional strategic plan must be approved by the career
and educational advisory council before submission to the department. A
regional strategic plan must include, but is not limited to, the following:

(a) An identification of regional employer need based on a
ranking of all career clusters in the workforce development board service
delivery area ranked by 10-year projections of annual job openings and median
wage for each standard occupational code in each career cluster as obtained
from the United States Bureau of Labor Statistics. Standard occupational codes
within high-ranking clusters also may be further ranked by median wage and
annual job openings. The career and educational advisory council located in the
workforce development board service delivery area shall review the rankings and
modify them if necessary to accurately reflect employer demand for talent in
the workforce development board service delivery area. A career and educational
advisory council shall document that it has conducted this review and certify
that it is accurate. These career cluster rankings must be determined and
updated once every 4 years.

(b) An identification of educational entities in the
workforce development board service delivery area that will provide eligible
CTE early middle college and CTE dual enrollment programs including districts,
intermediate districts, postsecondary institutions, and noncredit occupational
training programs leading to an industry-recognized credential.

(c) A strategy to inform parents and students of CTE early
middle college and CTE dual enrollment programs in the workforce development
board service delivery area.

(d) Any other requirements as defined by the department.

(5) An eligible CTE program is a program that meets all of
the following:

(a) Has been identified in the highest 5 career cluster
rankings in any of the 16 workforce development board service delivery area
strategic plans jointly approved by the department of labor and economic
opportunity and the department.

(b) Has a coherent sequence of courses in a specific career
cluster that will allow a student to earn a high school diploma and achieve at
least 1 of the following:

(i) For CTE early middle college, outcomes
as defined in subsection (3)(f).

(ii) For CTE dual enrollment, 1 of the
following:

(A) An associate degree.

(B) An industry-recognized technical certification approved
by the department of labor and economic opportunity.

(C) Up to 60 transferable college credits.

(D) Participation in a registered apprenticeship,
pre-apprenticeship, or apprentice readiness program.

(c) Is aligned with the Michigan merit curriculum.

(d) Has an articulation or a college credit agreement with at
least 1 postsecondary institution that provides students with opportunities to
receive postsecondary credits during the student’s participation in the CTE
early middle college or CTE dual enrollment program and transfers those credits
to the postsecondary institution upon completion of the CTE early middle
college or CTE dual enrollment program.

(e) Provides instruction that is supervised, directed, or
coordinated by an appropriately certificated CTE teacher or, for concurrent
enrollment courses, a postsecondary faculty member.

(f) Provides for highly integrated student support services
that include at least the following:

(i) Teachers as academic advisors.

(ii) Supervised course selection.

(iii) Monitoring of student progress and
completion.

(iv) Career planning services provided by a
local one-stop service center as described in the Michigan works one-stop
service center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a high
school counselor or advisor.

(g) Has courses that are taught on a college campus, are
college courses offered at the high school and taught by college faculty, or
are courses taught in combination with online instruction.

(6) The department shall distribute funds to eligible CTE
early middle college and CTE dual enrollment programs as follows:

(a) The department shall determine statewide average CTE
costs per pupil for each CIP code program by calculating statewide average
costs for each CIP code program for the 3 most recent fiscal years.

(b) The distribution to each eligible CTE early middle
college or CTE dual enrollment program is the product of 50% of CTE costs per
pupil times the pupil enrollment of each eligible CTE early middle college or
CTE dual enrollment program in the immediately preceding school year.

(7) To receive funds under this section, a CTE early middle
college or CTE dual enrollment program shall furnish to the intermediate
district that is the fiscal agent identified in subsection (2), in a form and
manner determined by the department, all information needed to administer this
program and meet federal reporting requirements; shall allow the department or
the department’s designee to review all records related to the program for
which it receives funds; and shall reimburse the state for all disallowances
found in the review, as determined by the department.

(8) There is allocated for 2025-2026 from the funds under
subsection (1) an amount not to exceed $500,000.00 from the state school aid
fund allocation for grants to intermediate districts or consortia of
intermediate districts for the purpose of planning for new or expanded early
middle college programs. Applications for grants must be submitted in a form
and manner determined by the department. The amount of a grant under this
subsection must not exceed $50,000.00. To be eligible for a grant under this
subsection, an intermediate district or consortia of intermediate districts
must provide matching funds equal to the grant received under this subsection.
Notwithstanding section 17b, the department shall make payments under this
subsection in the manner determined by the department.

(9) Funds distributed under this section may be used to fund
program expenditures that would otherwise be paid from foundation allowances. A
program receiving funding under section 61a may receive funding under this
section for allowable costs that exceed the reimbursement the program received
under section 61a. The combined payments received by a program under section
61a and this section must not exceed the total allowable costs of the program.
A program provider shall not use more than 5% of the funds allocated under this
section to the program for administrative costs.

(10) If the allocation under subsection (1) is insufficient
to fully fund payments as otherwise calculated under this section, the
department shall prorate payments under this section on an equal percentage
basis, using for that proration calculation payments made for CTE dual
enrollment programs only.

(11) If pupils enrolled in a career cluster in an eligible
CTE early middle college or CTE dual enrollment program qualify to be
reimbursed under this section, those pupils continue to qualify for
reimbursement until graduation, even if the career cluster is no longer
identified as being in the highest 5 career cluster rankings.

(12) As used in this section:

(a) “Allowable costs” means those costs directly attributable
to the program as jointly determined by the department of labor and economic
opportunity and the department.

(b) “Career and educational advisory council” means an
advisory council to the local workforce development boards located in a
workforce development board service delivery area consisting of educational,
employer, labor, and parent representatives.

(c) “CIP” means classification of instructional programs.

(d) “CTE” means career and technical education programs.

(e) “CTE dual enrollment program” means a 4-year high school
program of postsecondary courses offered by eligible postsecondary educational
institutions that leads to an industry-recognized certification or degree.

(f) “Early middle college program” means a 5-year high school
program.

(g) “Eligible postsecondary educational institution” means
that term as defined in section 3 of the career and technical preparation act,
2000 PA 258, MCL 388.1903.

Sec.
61d. (1) From the state school aid fund money in section 11, there is allocated
for 2025-2026 only an amount not to exceed $13,400,000.00 for additional
payments to districts for career and technical education programs for the
purpose of increasing the number of Michigan residents with high-quality
degrees or credentials, and to increase the number of pupils who are college-
and career-ready upon high school graduation.

(2) The department shall calculate payments to districts
under this section in the following manner:

(a) A payment of $88.00 multiplied by the number of pupils in
grades 9 to 12 who are counted in membership in the district and are enrolled
in at least 1 career and technical education program.

(b) An additional payment of $88.00 multiplied by the number
of pupils in grades 9 to 12 who are counted in membership in the district and
are enrolled in at least 1 career and technical education program that provides
instruction in critical skills and high-demand career fields.

(3) If the allocation under subsection (1) is insufficient to
fully fund payments under subsection (2), the department shall prorate payments
under this section on an equal per-pupil basis.

(4) As used in this section:

(a) “Career and technical education program” means a
state-approved career and technical education program, as determined by the
department.

(b) “Career and technical education program that provides
instruction in critical skills and high-demand career field” means a career and
technical education program classified under any of the following 2-digit
classification of instructional programs (CIP) codes:

(i) 01, which refers to “agriculture,
agriculture operations, and related sciences”.

(ii) 03, which refers to “natural resources
and conservation”.

(iii) 10 through 11, which refers to “communications
technologies/technicians and support services” and “computer and information
sciences and support services”.

(iv) 14 through 15, which refers to “engineering”
and “engineering technologies and engineering-related fields”.

(v) 26, which refers to “biological and
biomedical sciences”.

(vi) 46 through 48, which refers to “construction
trades”, “mechanic and repair technologies/technicians”, and “precision
production”.

(vii) 51, which refers to “health professions
and related programs”.

Sec.
61j. (1) From the state school aid fund money appropriated in section 11,
$5,000,000.00 is allocated for 2024-2025 only to Huron School District to
support the Downriver Career and Technical Education Consortium.

(2) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(3) The funds allocated in this section are a work project
appropriation, and any unexpended funds for 2024-2025 are carried forward into
2025-2026. The purpose of the work project is to continue support for the
Downriver Career and Technical Education Consortium. The estimated completion
date of the work project is September 30, 2026.

(4) Notwithstanding section 18a, funds allocated under this
section may be available for expenditure until September 30, 2027. A recipient
of funding under this section must return any unexpended funds to the
department in the manner prescribed by the department by not later than October
30, 2028.

Sec.
61v. (1) From
the state school aid fund money appropriated in section 11, there is allocated
for 2025-2026 only an amount not to exceed $70,000,000.00 for the purposes of
this section. Funds allocated under this section are intended to expand student
access to, and enrollment in, career and technical education programs.

(2) From the state school aid fund money allocated in
subsection (1), $68,500,000.00 must be used for a grant program to districts.
To be eligible to receive funding under this subsection, a district must be in
a CTE desert or must demonstrate to the satisfaction of the department that the
district has a career and technical education opportunity gap.

(3) Eligible districts shall apply on a competitive basis for
funding under subsection (2) in a form and manner determined by the department.
All of the following apply to applications for funding provided under
subsection (2):

(a) Applicants must provide a comprehensive local needs
assessment, a statement of commitment, including a district capacity and a
sustainability plan, a strategy to address the needs of students, and an
appropriate and aligned budget.

(b) Applicants must demonstrate the ability to continue
programs started with funding under this subsection in an ongoing manner after
funding received under this section is no longer available.

(c) Applications must be scored on a tiered rating system
with criteria that considers at least all of the following:

(i) Local match committed to by the
applicant, such as philanthropic, business, and industry contributions, and
vocational education millage revenue.

(ii) The magnitude to which the applicant
demonstrates that the applicant has an opportunity gap or is in a designated
CTE desert.

(iii) Labor market demand for proposed
programs.

(iv) Feasibility of planned implementation
and evaluation plans.

(4) All of the following apply to awards received by eligible
districts under subsection (2):

(a) Awards received under subsection (2) must be used to
create and sustain career and technical education programs aligned with
high-skill, high-wage, and high-demand occupations across career clusters
aligned with local and regional labor market needs. Career and technical
education programs described in this subdivision must be aligned with state
career and technical education standards, must integrate stackable credentials,
must create a program of study guided by a program advisory committee, and must
maintain all requirements of a state-approved program. Career and technical
education programs described in this subdivision may include the use of
multimodal learning and immersive technologies, including virtual reality
simulations, that expand access to core state-standards-aligned concepts and
skills for grades 6 to 12 in math and science, including students with lower
performing algebra 1 scores, or the use of programs that expand access to
high-skill, high-wage and high-demand career exploration and training,
particularly in CTE deserts with limited physical infrastructure.

(b) If funds received under subsection (2) are used for a
middle school career and technical education program, as determined by the
department, the recipient district must demonstrate how the program will do all
of the following:

(i) Align academic content with practical
career skills.

(ii) Integrate the flexibilities of the
Michigan merit curriculum in a program of study from middle school through
postsecondary education.

(iii) Allow students to earn high school
academic and career and technical education credits.

(iv) Enable a more seamless transition into
high school career and technical education pathways.

(v) Use the Educational Development Plan and
the Michigan Career Development Model to provide career and college readiness
activities for middle school students.

(c) Awards under subsection (2) must be received over a
3-year period.

(d) Districts may use the first year of funding received
under subsection (2) for program startup costs, including developing and
designing programs of study, creating and furnishing labs for technical skill
training, hiring qualified staff, or other eligible purposes as determined by
the department.

(e) Funding amounts provided in the second and third year
under subsection (2) must scale down from levels received in the first year.
Districts must increase local financial commitments to sustain the programs
described in this subsection.

(5) From the funds allocated in subsection (1), there is
allocated for 2025-2026 only an amount not to exceed $1,500,000.00 to implement
a statewide campaign to educate the public on the importance and economic
viability of jobs created through career and technical education pathways.
Statewide campaigns described in this subsection are intended to ensure full
enrollment in newly created programs by engaging as many students as possible.
Both of the following apply to funding allocated under this subsection:

(a) Funding allocated under this subsection must be awarded
by the department, in a form and manner determined by the department, to an
intermediate district or consortia of intermediate districts.

(b) The recipient receiving funding under this subsection
must use those funds for a statewide public awareness campaign to promote the
value of career and technical education to students, educators, parents,
business, and industry by showcasing student participants, how career and
technical education aligns with college and career readiness, and how it meets
local economic needs. The campaign must foster student, community, and parental
understanding of the benefits of career and technical education and encourage
broader participation.

(6) The funds allocated in this section are a work project
appropriation, and any unexpended funds for 2025-2026 are carried forward into
2026-2027. The purpose of the work project is to create new career and
technical education programs and expand access to programming for more
students. The estimated completion date of the work project is September 30,
2030.

(7) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
62. (1) For the purposes of this section:

(a) “Membership” means for a particular fiscal year the total
membership of the intermediate district and the districts constituent to the
intermediate district or the total membership of the area vocational-technical
program, except that if a district has elected not to come under sections 681
to 690 of the revised school code, MCL 380.681 to 380.690, the membership of
that district are not included in the membership of the intermediate district.
However, the membership of a district that has elected not to come under
sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, is
included in the membership of the intermediate district if the district meets
both of the following:

(i) The district operates the area
vocational-technical education program pursuant to a contract with the
intermediate district.

(ii) The district contributes an annual
amount to the operation of the program that is commensurate with the revenue
that would have been raised for operation of the program if millage were levied
in the district for the program under sections 681 to 690 of the revised school
code, MCL 380.681 to 380.690.

(b) “Millage levied” means the millage levied for area
vocational-technical education under sections 681 to 690 of the revised school
code, MCL 380.681 to 380.690, including a levy for debt service obligations
incurred as the result of borrowing for capital outlay projects and in meeting
capital projects fund requirements of area vocational-technical education.

(c) “Taxable value” means the total taxable value of the
districts constituent to an intermediate district or area vocational-technical
education program, except that if a district has elected not to come under
sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the
taxable value of that district is not included in the taxable value of the
intermediate district. However, the taxable value of a district that has
elected not to come under sections 681 to 690 of the revised school code, MCL
380.681 to 380.690, is included in the taxable value of the intermediate
district if the district meets both of the following:

(i) The district operates the area
vocational-technical education program pursuant to a contract with the
intermediate district.

(ii) The district contributes an annual
amount to the operation of the program that is commensurate with the revenue
that would have been raised for operation of the program if millage were levied
in the district for the program under sections 681 to 690 of the revised school
code, MCL 380.681 to 380.690.

(2) From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $9,190,000.00 each
fiscal year for 2024-2025 and 2025-2026 to reimburse intermediate districts and
area vocational-technical education programs established under section 690(3)
of the revised school code, MCL 380.690, levying millages for area
vocational-technical education under sections 681 to 690 of the revised school
code, MCL 380.681 to 380.690. The purpose, use, and expenditure of the
reimbursement are limited as if the funds were generated by those millages.

(3) Reimbursement for those millages levied in 2023-2024 is
made in 2024-2025 at an amount per 2023-2024 membership pupil computed by
subtracting from $269,800.00 the 2023-2024 taxable value behind each membership
pupil and multiplying the resulting difference by the 2023-2024 millage levied,
and then subtracting from that amount the 2023-2024 local community
stabilization share revenue for area vocational technical education and 2023-2024
tax increment revenues captured by a brownfield redevelopment authority created
under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to
125.2670, behind each membership pupil for reimbursement of personal property
exemption loss under the local community stabilization authority act, 2014 PA
86, MCL 123.1341 to 123.1362, and reimbursements paid under section 26d for tax
increment revenues captured by a brownfield redevelopment authority under the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670.
For the purposes of the calculation described in the previous sentence only,
for an intermediate district receiving funds under this section and section 56,
reimbursements paid under section 26d must be multiplied by the ratio of
vocational-technical education millage levied, as defined in this section, and
the sum of vocational-technical education millage levied and special education.

(4) Reimbursement for those millages levied in 2024-2025 is
made in 2025-2026 at an amount per 2024-2025 membership pupil computed by
subtracting from $287,400.00 the 2024-2025 taxable value behind each membership
pupil and multiplying the resulting difference by the 2024-2025 millage levied,
and then subtracting from that amount the 2024-2025 local community
stabilization share revenue for area vocational technical education and
2024-2025 tax increment revenues captured by a brownfield redevelopment
authority created under the brownfield redevelopment financing act, 1996 PA
381, MCL 125.2651 to 125.2670, behind each membership pupil for reimbursement
of personal property exemption loss under the local community stabilization
authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid
under section 26d for tax increment revenues captured by a brownfield
redevelopment authority under the brownfield redevelopment financing act, 1996
PA 381, MCL 125.2651 to 125.2670. For the purposes of the calculation described
in the previous sentence only, for an intermediate district receiving funds
under this section and section 56, reimbursements paid under section 26d must
be multiplied by the ratio of vocational-technical education millage levied, as
defined in this section, and the sum of vocational-technical education millage
levied and special education millage levied, as defined in section 56.

(5) The department shall ensure that the amount paid to a
single intermediate district under this section does not exceed 38.4% of the
total amount allocated under subsection (2).

(6) The department shall ensure that the amount paid to a
single intermediate district under this section is not less than 75% of the
amount allocated to the intermediate district under this section for the
immediately preceding fiscal year.

Sec.
65. (1) From the state school aid pupil support reserve fund money appropriated
in section 11, there is allocated an amount not to exceed $900,000.00 for
2025-2026 only for a pre-college engineering K to 12 educational program that
is focused on the development of a diverse future Michigan workforce, that
serves multiple communities within southeast Michigan, that enrolls pupils from
multiple districts, and that received funds appropriated for this purpose in
the appropriations act that provided the Michigan strategic fund budget for
2014-2015. It is the intent of the legislature that the appropriation under
this section will be funded with state school aid pupil support reserve fund
money through 2027-2028.

(2) To be eligible for funding under this section, a program
must have the ability to expose pupils to, and motivate and prepare pupils for,
science, technology, engineering, and mathematics careers and postsecondary
education with special attention given to groups of pupils who are at-risk and
underrepresented in technical professions and careers.

Sec.
67. (1) From the general fund money appropriated in section 11, there is
allocated an amount not to exceed $3,000,000.00 for 2025-2026 for college
access programs. The programs funded under this section are intended to inform
students of college and career options, to provide resources intended to
increase the number of pupils who are adequately prepared with the information
needed to make informed decisions on college and career, support adult
learners, support college completion, and support workforce and employer
engagement. The funds appropriated under this section are intended to be used
to increase the number of Michigan residents with high-quality degrees or
credentials. Funds appropriated under this section must not be used to supplant
funding for counselors already funded by districts.

(2) The department of lifelong education, advancement, and
potential shall administer funds allocated under this section in collaboration
with the Michigan college access network. These funds may be used for any of
the following purposes:

(a) Michigan college access network operations, programming,
and services to local college access networks.

(b) Local college access networks, which are community-based
college access/success partnerships committed to increasing the college
participation and completion rates within geographically defined communities
through a coordinated strategy.

(c) The Michigan college advising program, a program intended
to place trained, recently graduated college advisors in high schools that
serve significant numbers of low-income and first-generation college-going
pupils. State funds used for this purpose may not exceed 33% of the total funds
available under this subsection.

(d) Subgrants of up to $5,000.00 to districts with
comprehensive high schools that establish a college access team and implement
specific strategies to create a college-going culture in a high school in a
form and manner approved by the Michigan college access network and the
department of lifelong education, advancement, and potential.

(e) The Michigan college access portal, an online one-stop
portal to help pupils and families plan and apply for college.

(f) Public awareness and outreach campaigns to encourage
low-income and first-generation college-going pupils to take necessary steps
toward college and to assist pupils and families in completing a timely and
accurate free application for federal student aid.

(g) Subgrants to postsecondary institutions to recruit, hire,
and train college student mentors and college advisors to assist high school
pupils in navigating the postsecondary planning and enrollment process.

(3) For the purposes of this section, “college” means any
postsecondary educational opportunity that leads to a career, including, but
not limited to, a postsecondary degree, industry-recognized technical
certification, or registered apprenticeship.

Sec.
67f. (1) From the state school aid pupil support reserve fund money
appropriated in section 11, there is allocated for 2025-2026 only an amount not
to exceed $10,000,000.00 for districts to improve FAFSA completion rates. It is
the intent of the legislature that the appropriation under this section will be
funded with state school aid pupil support reserve fund money through
2027-2028.

(2) To be eligible to receive funding under this section,
each district must apply in a form and manner determined by the department of
lifelong education, advancement, and potential. The department of lifelong
education, advancement, and potential shall make the application available by
not later than November 1, 2025. A district shall apply for funding to the
department of lifelong education, advancement, and potential by not later than
December 1, 2025. In the application, the department of lifelong education,
advancement, and potential shall only require a district to certify that it
will do both of the following:

(a) Except as otherwise provided in subsection (3), require
all students to complete the FAFSA to graduate from high school.

(b) Use funds received under this section for participation
in and implementation of activities that are known to drive FAFSA completion,
as determined by the department of lifelong education, advancement, and
potential, in collaboration with the Michigan College Access Network.

(3) A district shall exempt a student from the requirement to
complete the FAFSA if any of the following are met:

(a) The student’s parent or legal guardian, or the student if
the student is 18 years of age or older, is an emancipated minor, or is an
unaccompanied youth, has submitted a parental waiver to the district exempting
the student from completing the FAFSA. The parental waiver described in this
subdivision must be obtained through a standard form developed by the
department of lifelong education, advancement, and potential.

(b) The student is unable to complete the FAFSA because of
privacy concerns.

(c) All of the following are met:

(i) After a good-faith effort, the student’s
parent or legal guardian refuses to sign the parental waiver, is unresponsive,
or cannot sign the parental waiver.

(ii) The student is unable to complete the
FAFSA as an independent student.

(iii) The student agrees to opt out of
completing the FAFSA.

(iv) Other than the requirements in
subsection (2), the student is on track to graduate.

(v) A school administrator of the student’s
high school demonstrates to the board that good-faith efforts have been made to
assist the student or the student’s parent or legal guardian in completing the
FAFSA or obtaining a parental waiver.

(vi) The board ensures compliance with 42 USC
11432(g)(6)(A).

(4) By not later than January 31, 2026, the department of
lifelong education, advancement, and potential shall pay each eligible district
an equal amount per pupil multiplied by the number of pupils enrolled and
attending grade 12 in the district.

(5) Notwithstanding section 17b, the department of lifelong
education, advancement, and potential shall make payments under this section on
a schedule determined by the department of lifelong education, advancement, and
potential.

(6) As used in the section, “FAFSA” means the free
application for federal student aid form.

Sec.
74. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $3,949,900.00 for 2025-2026 for the
purposes of this section.

(2) From the allocation in subsection (1), there is allocated
for 2025-2026 the amount necessary for payments to state supported colleges or
universities and intermediate districts providing school bus driver safety
instruction under section 51 of the pupil transportation act, 1990 PA 187, MCL
257.1851. The department shall make payments in an amount determined by the
department not to exceed the actual cost of instruction and driver compensation
for each public or nonpublic school bus driver attending a course of
instruction. For the purpose of computing compensation, the hourly rate allowed
each school bus driver must not exceed the hourly rate received for driving a
school bus. The department shall make reimbursement compensating the driver
during the course of instruction to the college or university or intermediate
district providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated
for 2025-2026 the amount necessary to pay the reasonable costs of nonspecial
education auxiliary services transportation provided under section 1323 of the
revised school code, MCL 380.1323. Districts funded under this subsection do
not receive funding under any other section of this article for nonspecial
education auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is
allocated an amount not to exceed $1,924,900.00 for 2025-2026 for the
inspection of school buses and pupil transportation vehicles by the department
of state police as required under section 715a of the Michigan vehicle code,
1949 PA 300, MCL 257.715a, and section 39 of the pupil transportation act, 1990
PA 187, MCL 257.1839. The department of state police shall prepare a statement
of costs and submit it to the department and to an intermediate district
serving as fiduciary in a time and manner determined jointly by the department
and the department of state police. Upon review and approval of the statement
of cost, the department shall forward to the designated intermediate district
serving as fiduciary the amount detailed on the statement within 45 days after
receipt of the statement. The designated intermediate district fiduciary shall
make payment in the amount specified on the statement to the department of
state police within 45 days after receipt of the statement. The total
reimbursement of costs under this subsection must not exceed the amount
allocated under this subsection. Notwithstanding section 17b, the department
shall make payments to eligible entities under this subsection on a schedule
prescribed by the department.

Sec.
81. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2025-2026 to intermediate districts the sum necessary, but not
to exceed $83,157,700.00, to provide state aid to intermediate districts under
this section.

(2) The amount allocated under this section to each
intermediate school district for the current fiscal year is equal to the
allocation for the immediately preceding fiscal year plus an equal percentage
increase for all intermediate school districts. An intermediate district shall
use funding provided under this section to comply with requirements of this
article and the revised school code that are applicable to intermediate
districts, and for which funding is not provided elsewhere in this article, and
to provide technical assistance to districts as authorized by the intermediate
school board.

(3) Intermediate districts receiving funds under this section
shall collaborate with the department to develop expanded professional
development opportunities for teachers to update and expand their knowledge and
skills needed to support the Michigan merit curriculum.

(4) From the allocation in subsection (1), there is allocated
to an intermediate district, formed by the consolidation or annexation of 2 or
more intermediate districts or the attachment of a total intermediate district
to another intermediate district or the annexation of all of the constituent K
to 12 districts of a previously existing intermediate district which has
disorganized, an additional allotment of $3,500.00 each fiscal year for each
intermediate district included in the new intermediate district for 3 years
following consolidation, annexation, or attachment.

(5) To receive funding under this section, an intermediate
district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that
the intermediate district employs at least 1 person who is trained in pupil
accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that
the intermediate district employs at least 1 person who is trained in rules,
regulations, and district reporting procedures for the individual-level student
data that serves as the basis for the calculation of the district and high
school graduation and dropout rates.

(c) Comply with sections 1278a and 1278b of the revised
school code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and
federal law to the center and the department in the form and manner specified
by the center or the department, as applicable.

(e) Comply with section 1230g of the revised school code, MCL
380.1230g.

(f) Ensure that all districts located within the intermediate
district’s geographic boundaries have equitable access to the intermediate
district’s coordination activities and services, intermediate district-wide or
regional meetings, regularly scheduled superintendent meetings, programming,
events, email distribution lists, listservs, or other coordination or
collaboration activities organized by or hosted in the intermediate district.
In ensuring that all districts located within the geographic boundaries of the
intermediate district have equitable access to the services, meetings,
programming, events, email distribution lists, listservs, or activities, the
intermediate district shall ensure that districts that are public school
academies and that are located within the intermediate district’s geographic
boundaries are not excluded from the services, meetings, programming, events,
email distribution lists, listservs, or activities organized by or hosted in
the intermediate district if districts that are not public school academies and
that are located within the geographic boundaries of the intermediate district
are not excluded.

Sec.
94. (1) From the general fund money appropriated in section 11, there is
allocated to the department for 2025-2026 an amount not to exceed $2,600,000.00
for efforts to increase the number of pupils who participate and succeed in
advanced placement and international baccalaureate programs, and to support the
college-level examination program (CLEP). It is the intent of the legislature that,
for 2026-2027, the allocation from the general fund money appropriated in
section 11 for purposes described in this section will be $1,200,000.00.

(2) From the funds allocated under this section, the
department shall award funds to cover all or part of the costs of advanced
placement test fees or international baccalaureate test fees and international
baccalaureate registration fees for low-income pupils who take an advanced
placement or an international baccalaureate test and CLEP fees for low-income
pupils who take a CLEP test.

(3) The department shall only award funds under this section
if the department determines that all of the following criteria are met:

(a) Each pupil for whom payment is made meets eligibility
requirements of the federal advanced placement test fee program under the no
child left behind act of 2001, Public Law 107-110, or the every student
succeeds act, Public Law 114-95, as applicable.

(b) The tests are administered by the college board, the
international baccalaureate organization, or another test provider approved by
the department.

(c) The pupil for whom payment is made pays at least $5.00
toward the cost of each test for which payment is made.

(4) If funds remain after the awards granted in subsection
(2), the department shall award funds to reimburse a portion of the costs
associated with the provision of advanced placement (AP), international
baccalaureate (IB), or college-level examination program (CLEP) exams for
students whose family income exceeds low-income status as determined by the
department.

(5) The department shall establish procedures for awarding
funds under this section.

(6) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
94a. (1) There is created within the state budget office in the department of
technology, management, and budget the center for educational performance and
information. The center shall do all of the following:

(a) Coordinate the collection of all data required by state
and federal law from districts, intermediate districts, and postsecondary
institutions.

(b) Create, maintain, and enhance this state’s P-20
longitudinal data system and ensure that it meets the requirements of
subsection (4).

(c) Collect data in the most efficient manner possible to
reduce the administrative burden on reporting entities, including, but not
limited to, electronic transcript services.

(d) Create, maintain, and enhance this state’s web-based
educational portal to provide information to school leaders, teachers,
researchers, and the public in compliance with all federal and state privacy
laws. Data must include, but are not limited to, all of the following:

(i) Data sets that link teachers to student
information, allowing districts to assess individual teacher impact on student
performance and consider student growth factors in teacher and principal
evaluation systems.

(ii) Data access or, if practical, data sets,
provided for regional data hubs that, in combination with local data, can
improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers
to perform research that advances this state’s educational performance.

(e) Provide data in a useful manner to allow state and local
policymakers to make informed policy decisions.

(f) Provide public reports to the residents of this state to
allow them to assess allocation of resources and the return on their investment
in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects
information from districts, intermediate districts, or postsecondary
institutions as required under state or federal law shall make arrangements
with the center to ensure that the state department, officer, or agency is in
compliance with subsection (1). This subsection does not apply to information
collected by the department of treasury under the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond qualification,
approval, and loan act, 2005 PA 92, MCL 388.1921 to 388.1939; or section 1351a
of the revised school code, MCL 380.1351a.

(3) The center may enter into any interlocal agreements
necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data
system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from
preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data
structures, data formats, and data definitions to ensure linkage and
connectivity in a manner that facilitates the exchange of data among agencies
and institutions within the state and between states.

(c) Enables the matching of individual teacher and student
records so that an individual student may be matched with those teachers
providing instruction to that student.

(d) Enables the matching of individual teachers with
information about their certification and the institutions that prepared and
recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous
improvement and decision-making, including timely reporting to parents,
teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability
of data contained in the system.

(g) Provides this state with the ability to meet federal and
state reporting requirements.

(h) For data elements related to preschool through grade 12
and postsecondary, meets all of the following:

(i) Contains a unique statewide student
identifier that does not permit a student to be individually identified by
users of the system, except as allowed by federal and state law.

(ii) Contains student-level enrollment,
demographic, and program participation information, including data associated
with students who have been identified as having an affiliation to 1 or more
federally recognized Indian tribes and student participation in federal
programs funded under 20 USC 7401 to 7546 and participation in federal programs
funded under the Johnson-O’Malley Supplemental Indian Education Program
Modernization Act, Public Law 115-404. Any reports or data access related
specifically to tribal affiliation must be done through ongoing consultation
with the federally recognized tribes in the state with the expectation that the
center, the department, and the tribes will work iteratively toward meaningful
reports, access, and use of these records to improve shared education interests
and outcomes.

(iii) Contains student-level information about
the points at which students exit, transfer in, transfer out, drop out, or
complete education programs.

(iv) Has the capacity to communicate with
higher education data systems.

(i) For data elements related to preschool through grade 12
only, meets all of the following:

(i) Contains yearly test records of individual
students for assessments approved by DED-OESE for accountability purposes under
section 1111(b) of the elementary and secondary education act of 1965, 20 USC 6311,
including information on individual students not tested, by grade and subject.

(ii) Contains student-level transcript
information, including information on courses completed and grades earned.

(iii) Contains student-level college readiness
test scores.

(j) For data elements related to postsecondary education
only:

(i) Contains data that provide information
regarding the extent to which individual students transition successfully from
secondary school to postsecondary education, including, but not limited to, all
of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year’s worth of college credit applicable
to a degree within 2 years of enrollment.

(ii) Contains data that provide other
information determined necessary to address alignment and adequate preparation
for success in postsecondary education.

(5) From the general fund money appropriated in section 11,
there is allocated an amount not to exceed $19,364,700.00 for 2025-2026 to the
department of technology, management, and budget to support the operations of
the center. In addition, from the federal funds appropriated in section 11,
there is allocated for 2025-2026 the amount necessary, estimated at
$2,193,500.00, to support the operations of the center and to establish a P‑20 longitudinal
data system necessary for state and federal reporting purposes. The center
shall cooperate with the department to ensure that this state is in compliance
with federal law and is maximizing opportunities for increased federal funding
to improve education in this state.

(6) From the funds allocated in subsection (5), the center
may use an amount determined by the center for competitive grants for 2025-2026
to support collaborative efforts on the P-20 longitudinal data system. All of
the following apply to grants awarded under this subsection:

(a) The center shall award competitive grants to eligible
intermediate districts or a consortium of intermediate districts based on
criteria established by the center.

(b) Activities funded under the grant must support the P-20
longitudinal data system portal and may include portal hosting, hardware and
software acquisition, maintenance, enhancements, user support and related
materials, and professional learning tools and activities aimed at improving
the utility of the P-20 longitudinal data system.

(c) An applicant that received a grant under this subsection
for the immediately preceding fiscal year has priority for funding under this
section. However, after 3 fiscal years of continuous funding, an applicant is
required to compete openly with new applicants.

(7) Funds allocated under this section that are not expended
in the fiscal year in which they were allocated may be carried forward to a
subsequent fiscal year and are appropriated for the purposes for which the
funds were originally allocated.

(8) The center may bill departments as necessary to fulfill
reporting requirements of state and federal law. The center may also enter into
agreements to supply custom data, analysis, and reporting to other principal
executive departments, state agencies, local units of government, and other
individuals and organizations. The center may receive and expend funds in
addition to those authorized in subsection (5) to cover the costs associated
with salaries, benefits, supplies, materials, and equipment necessary to
provide such data, analysis, and reporting services.

(9) As used in this section, “DED-OESE” means the United
States Department of Education Office of Elementary and Secondary Education.

Sec.
94e. (1) From the state school aid fund money appropriated under section 11,
there is allocated for 2025-2026 only an amount not to exceed $1,000,000.00 for
support of the Michigan Education Research Institute.

(2) Funding allocated under this section must be distributed
to the University of Michigan’s Michigan Education Data Center and Michigan
State University’s Education Policy Innovation Center for the purpose of
working collaboratively with the department, the department of lifelong
education, advancement, and potential, and the center to build and maintain a
research ready dataset, and to conduct research of critical importance to the
state’s education goals.

(3) The Michigan Education Research Institute shall use funds
received under this section for the purpose of expanding on research that
includes, but is not limited to, all the following:

(a) Educator shortage.

(b) Early literacy initiative outcomes.

(c) Early childhood development programming outcomes.

(4) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
97g. (1) From the state school aid fund money appropriated in section 11, there
is allocated for 2023-2024 only, $9,000,000.00 to an intermediate district with
K to 12 pupil membership between 37,500 and 42,500, as reported in the
2021-2022 MI School Data Student Enrollment Counts Report school year final
student count, to establish and operate a statewide Security Operations Center
(SOC) in partnership with a statewide educational organization. The SOC will
provide a Managed Detection and Response (MDR) solution, including SOC staff,
to monitor and assist in responding to threats and attacks on critical
technology infrastructure for districts and intermediate districts.

(2) The intermediate district receiving funds under this
section shall contract with a nonprofit educational organization that maintains
a statewide educational technology collaborative to establish the statewide
SOC. This statewide SOC will operate under the guidance of an advisory board,
comprising educational technology leaders, with regional statewide
representation. Other K to 12 stakeholders may be invited to participate in the
advisory.

(3) The nonprofit educational organization that the
intermediate district contracted with in subsection (2) shall use the funds to
do all of the following:

(a) Establish a statewide advisory.

(b) Establish a statewide SOC security team.

(c) Establish statewide MDR service.

(d) Train district technology staff in the deployment and use
of MDR software and services.

(e) Purchase and distribute MDR licensing to districts and
intermediate districts for installation on critical technology infrastructure.

(f) Train, monitor, and track district utilization of a
toolkit to be identified by the SOC such as MISecure Quick Self-Assessment.

(g) Not later than January 1, 2025 and each subsequent fiscal
year, prepare a summary report that includes measurable outcomes including
participation, detection, prevention, and response to cybersecurity incidents
in order to evaluate the effectiveness of the project. The report must be
submitted to the house and senate appropriations subcommittees on school aid
and to the house and senate fiscal agencies.

(4) After the nonprofit educational organization that the
intermediate district contracted with in subsection (2) uses funds as
required under subsection (3), the nonprofit educational organization may use
any remaining funds to do any of the following:

(a) Supply additional cybersecurity services as technologies
evolve and budget allows.

(b) Partner with K to 12 statewide connectivity partners to
install and monitor intrusion detection systems.

(5) Districts receiving software and service under this
project shall do both of the following:

(a) Complete the assessment identified in subsection (3)(f)
annually.

(b) Install and maintain statewide SOC MDR software on
critical infrastructure as described in this section, provide access to the
software to the statewide SOC, and coordinate responses with the statewide SOC
and the district’s intermediate district.

(6) For districts that have MDR solutions in place as of
October 1, 2023, a licensing cost allocation equal to the cost of the statewide
SOC provided license may be provided until the end of the local contract or the
end of the funding period, whichever comes first. Funds allocated under this
subsection must be used to offset local MDR costs, cybersecurity assessment, or
further cybersecurity investment.

(7) The funds allocated under this section for 2023-2024 are
a work project appropriation, and any unexpended funds for 2023-2024 are
carried forward and may be expended in subsequent years until the end of the
2027-2028 state fiscal year. The purpose of the work project is to increase
stable and reliable cybersecurity in districts and intermediate districts. The
estimated completion date of the work project is September 30, 2028.

(8) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(9) Notwithstanding section 18a, funds allocated under this
section may be available for expenditure until September 30, 2028. A recipient
of funding under this section must return any unexpended funds to the
department in the manner prescribed by the department by not later than October
30, 2028.

Sec.
97k. (1) From the state school aid fund money appropriated in section 11, there
is allocated $250,000.00 for 2024-2025 only to Washtenaw Intermediate School
District to utilize on the Student Advocacy Center of Michigan in Ypsilanti to
support its statewide helpline for families in educational crisis.

(2) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(3)
The funds allocated in this section are a work project appropriation, and any
unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose
of the work project is to continue support for the Student Advocacy Center of
Michigan to support its statewide helpline for families in educational crisis.
The estimated completion date of the work project is September 30, 2026.

Sec.
97n. (1) From
the state school aid fund money appropriated in section 11, there is allocated
for 2025-2026 $10,000,000.00 for grants to districts to support the efforts of
community violence intervention plans to reduce or prevent youth violence.

(2) Districts must apply on a competitive basis for funding
under this section in a form and manner determined by the department. The
department shall coordinate with the office of community violence intervention
in the department of health and human services to evaluate applications
submitted under this section. Awards must be granted based on competitive
criteria determined by the department and the department of health and human
services, but must prioritize grants for local district plans that include comprehensive
strategies with demonstrated external partnerships to support successful
implementation.

(3) Districts may use funding received under this section to
contract with nonprofits, community-based organizations, subject matter
experts, or other governmental entities to implement a plan to reduce or
prevent youth violence. A plan to reduce or prevent youth violence implemented
under this subsection must use evidence-based practices, include mentorship and
community engagement strategies, and may include, but is not limited to,
increased academic, counseling, health, and wrap-around services to youth.

(4) The funds allocated in this section are a work project
appropriation, and any unexpended funds for 2025-2026 are carried forward into
2026-2027. The purpose of the work project is to support the work of community
violence intervention programs in districts and intermediate districts. The
estimated completion date of the work project is September 30, 2030.

(5) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
98. (1) From the general fund money appropriated in section 11, there is
allocated an amount not to exceed $9,800,000.00 for 2025-2026 for the purposes
described in this section. The Michigan Virtual University shall provide a
report to the legislature not later than November 1 of each fiscal year for
which funding is allocated under this section that includes its mission, its
plans, and proposed benchmarks it must meet, including a plan to achieve the
organizational priorities identified in this section, to receive full funding
for the next fiscal year for which funding is allocated under this section. By
not later than March 1 of each fiscal year for which funding is allocated under
this section, the Michigan Virtual University shall provide an update to the
house and senate appropriations subcommittees on school aid to show the
progress being made to meet the benchmarks identified.

(2) The Michigan Virtual University shall operate the
Michigan Virtual Learning Research Institute. The Michigan Virtual Learning
Research Institute shall do all of the following:

(a) Support and accelerate innovation in education through
the following activities:

(i) Test, evaluate, and recommend as
appropriate new technology-based instructional tools and resources.

(ii) Research, design, and recommend virtual
education delivery models for use by pupils and teachers that include
age-appropriate multimedia instructional content.

(iii) Research, develop, and recommend
annually to the department criteria by which cyber schools and virtual course
providers should be monitored and evaluated to ensure a quality education for
their pupils.

(iv) Based on pupil completion and
performance data reported to the department or the center from cyber schools
and other virtual course providers operating in this state, analyze the
effectiveness of virtual learning delivery models in preparing pupils to be
college- and career-ready and publish a report that highlights enrollment
totals, completion rates, and the overall impact on pupils. The Michigan
Virtual Learning Research Institute shall submit the report to the house and
senate appropriations subcommittees on school aid, the state budget director,
the house and senate fiscal agencies, the department, districts, and
intermediate districts by not later than March 31 of each fiscal year for
which funding is allocated under this section.

(v) Provide an extensive professional
development program to at least 30,000 educational personnel, including
teachers, school administrators, and school board members, that focuses on the
effective integration of virtual learning into curricula and instruction. The
Michigan Virtual Learning Research Institute is encouraged to work with the
MiSTEM council described in section 99s to coordinate professional development
of teachers in applicable fields. In addition, the Michigan Virtual Learning
Research Institute and external stakeholders are encouraged to coordinate with
the department for professional development in this state, including
professional development for employees in child care facilities, early
childhood facilities, and after-school programs. By not later than December 1
of each fiscal year for which funding is allocated under this section, the
Michigan Virtual Learning Research Institute shall submit a report to the house
and senate appropriations subcommittees on school aid, the state budget director,
the house and senate fiscal agencies, and the department on the number of
teachers, school administrators, and school board members who have received
professional development services from the Michigan Virtual University. The
report must also include both of the following:

(A) The identification of barriers and other opportunities to
encourage the adoption of virtual learning in the public education system.

(B) A link to, and explanation of, the Michigan Virtual
University’s online course standards for professional development programming.
The standards described in this sub-subparagraph must inform learners how to
file a complaint about course content and detail the steps that will be taken
for the review and resolution of complaints.

(vi) Identify and share best practices for
planning, implementing, and evaluating virtual and blended education delivery
models with intermediate districts, districts, and public school academies to
accelerate the adoption of innovative education delivery models statewide.

(b) Provide leadership for this state’s system of virtual
learning education by doing the following activities:

(i) Develop and report policy
recommendations to the governor and the legislature that accelerate the
expansion of effective virtual learning in this state’s schools.

(ii) Provide a clearinghouse for research
reports, academic studies, evaluations, and other information related to
virtual learning.

(iii) Promote and distribute the most current
instructional design standards and guidelines for virtual teaching.

(iv) In collaboration with the department and
interested colleges and universities in this state, support implementation and
improvements related to effective virtual learning instruction.

(v) Pursue public/private partnerships that
include districts to study and implement competency-based technology-rich
virtual learning models.

(vi) Create a statewide network of
school-based mentors serving as liaisons between pupils, virtual instructors,
parents, and school staff, as provided by the department or the center, and
provide mentors with research-based training and technical assistance designed
to help more pupils be successful virtual learners.

(vii) Convene focus groups and conduct annual
surveys of teachers, administrators, pupils, parents, and others to identify
barriers and opportunities related to virtual learning.

(viii) Produce an annual consumer awareness
report for schools and parents about effective virtual education providers and
education delivery models, performance data, cost structures, and research
trends.

(ix) Provide an internet-based platform that
educators can use to create student-centric learning tools and resources for
sharing in the state’s open educational resource repository and facilitate a
user network that assists educators in using the content creation platform and
state repository for open educational resources. As part of this initiative,
the Michigan Virtual University shall work collaboratively with districts and
intermediate districts to establish a plan to make available virtual resources that
align to Michigan’s K to 12 curriculum standards for use by students,
educators, and parents.

(x) Create and maintain a public statewide
catalog of virtual learning courses being offered by all public schools and
community colleges in this state. The Michigan Virtual Learning Research
Institute shall identify and develop a list of nationally recognized best
practices for virtual learning and use this list to support reviews of virtual
course vendors, courses, and instructional practices. The Michigan Virtual
Learning Research Institute shall also provide a mechanism for intermediate
districts to use the identified best practices to review content offered by
constituent districts. The Michigan Virtual Learning Research Institute shall
review the virtual course offerings of the Michigan Virtual University, and
make the results from these reviews available to the public as part of the
statewide catalog. The Michigan Virtual Learning Research Institute shall
ensure that the statewide catalog is made available to the public on the
Michigan Virtual University website and shall allow the ability to link it to
each district’s website as provided for in section 21f. The statewide catalog
must also contain all of the following:

(A) The number of enrollments in each virtual course in the
immediately preceding school year.

(B) The number of enrollments that earned 60% or more of the
total course points for each virtual course in the immediately preceding school
year.

(C) The pass rate for each virtual course.

(xi) Support registration, payment services,
and transcript functionality for the statewide catalog and train key
stakeholders on how to use new features.

(xii) Collaborate with key stakeholders to
examine district level accountability and teacher effectiveness issues related
to virtual learning under section 21f and make findings and recommendations
publicly available.

(xiii) Provide a report on the activities of
the Michigan Virtual Learning Research Institute.

(3) To further enhance its expertise and leadership in
virtual learning, the Michigan Virtual University shall continue to operate the
Michigan Virtual School as a statewide laboratory and quality model of
instruction by implementing virtual and blended learning solutions for Michigan
schools in accordance with the following parameters:

(a) The Michigan Virtual School must maintain its
accreditation status from recognized national and international accrediting
entities.

(b) The Michigan Virtual University shall use no more than
$1,000,000.00 of the amount allocated under this section to subsidize the cost
paid by districts for virtual courses.

(c) In providing educators responsible for the teaching of
virtual courses as provided for in this section, the Michigan Virtual School
shall follow the requirements to request and assess, and the department of
state police shall provide, a criminal history check and criminal records check
under sections 1230 and 1230a of the revised school code, MCL 380.1230 and
380.1230a, in the same manner as if the Michigan Virtual School were a school
district under those sections.

(4) From the funds allocated under subsection (1), the
Michigan Virtual University shall support the expansion of new online and
blended educator professional development programs.

(5) From the funds allocated under subsection (1), the
Michigan Virtual University shall operate a comprehensive statewide laboratory
designed to function as a hub for cutting-edge research, the identification and
dissemination of best practices, rigorous experimentation, policy formulation,
and proactive efforts to enhance awareness about the responsible utilization of
artificial intelligence in schools.

(6) If the course offerings are included in the statewide
catalog of virtual courses under subsection (2)(b)(x), the Michigan Virtual School operated by the Michigan
Virtual University may offer virtual course offerings, including, but not
limited to, all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as that term is defined
in section 1471 of the revised school code, MCL 380.1471.

(c) Courses and dual enrollment opportunities.

(d) Programs and services for at-risk pupils.

(e) High school equivalency test preparation courses for
adjudicated youth.

(f) Special interest courses.

(g) Professional development programs for teachers, school
administrators, other school employees, and school board members.

(7) If a home-schooled or nonpublic school student is a
resident of a district that subscribes to services provided by the Michigan
Virtual School, the student may use the services provided by the Michigan
Virtual School to the district without charge to the student beyond what is
charged to a district pupil using the same services.

(8) By not later than December 1 of each fiscal year for
which funding is allocated under this section, the Michigan Virtual University
shall provide a report to the house and senate appropriations subcommittees on
school aid, the state budget director, the house and senate fiscal agencies,
and the department that includes at least all of the following information
related to the Michigan Virtual School for the preceding fiscal year:

(a) A list of the districts served by the Michigan Virtual
School.

(b) A list of virtual course titles available to districts.

(c) The total number of virtual course enrollments and
information on registrations and completions by course.

(d) The overall course completion rate percentage.

(9) In addition to the information listed in subsection (8),
the report under subsection (8) must also include a plan to serve at least 600
schools with courses from the Michigan Virtual School or with content available
through the internet-based platform identified in subsection (2)(b)(ix).

(10) The governor may appoint an advisory group for the
Michigan Virtual Learning Research Institute established under subsection (2).
The members of the advisory group serve at the pleasure of the governor and
without compensation. The purpose of the advisory group is to make
recommendations to the governor, the legislature, and the president and board
of the Michigan Virtual University that will accelerate innovation in this
state’s education system in a manner that will prepare elementary and secondary
students to be career and college ready and that will promote the goal of
increasing the percentage of residents of this state with high-quality degrees
and credentials to at least 60% by 2030.

(11) By not later than November 1 of each fiscal year for
which funding is allocated under this section, the Michigan Virtual University
shall submit to the house and senate appropriations subcommittees on school
aid, the state budget director, and the house and senate fiscal agencies a
detailed budget for that fiscal year that includes a breakdown on its projected
costs to deliver virtual educational services to districts and a summary of the
anticipated fees to be paid by districts for those services. By not later than
March 1 each fiscal year for which funding is allocated under this section, the
Michigan Virtual University shall submit to the house and senate appropriations
subcommittees on school aid, the state budget director, and the house and senate
fiscal agencies a breakdown on its actual costs to deliver virtual educational
services to districts and a summary of the actual fees paid by districts for
those services based on audited financial statements for the immediately
preceding fiscal year.

(12) As used in this section:

(a) “Blended learning” means a hybrid instructional delivery
model where pupils are provided content, instruction, and assessment, in part
at a supervised educational facility away from home where the pupil and a
teacher with a valid Michigan teaching certificate are in the same physical
location and in part through internet-connected learning environments with some
degree of pupil control over time, location, and pace of instruction.

(b) “Cyber school” means a full-time instructional program of
virtual courses for pupils that may or may not require attendance at a physical
school location.

(c) “Virtual course” means a course of study that is capable
of generating a credit or a grade and that is provided in an interactive
learning environment in which the majority of the curriculum is delivered using
the internet and in which pupils are separated from their instructor or teacher
of record by time or location, or both.

Sec.
99. (1) From the state school aid fund money appropriated in section 11, there
is allocated an amount not to exceed $500,000.00 for 2023-2024 only to Kentwood
Public Schools and Oak Park Schools for a plant-based school meals pilot grant
program. Grants shall be used for developing and implementing plant-based meal
options in school cafeterias, training school food service staff in the
preparation of plant-based meals, and purchasing necessary kitchen equipment to
facilitate the preparation of plant-based meals. Recipients of grants under
this program shall submit a report to the department detailing the use of funds
and the impact of the program on student meal choices and environmental
sustainability.

(2) From the general fund money appropriated in section 11,
there is allocated an amount not to exceed $500,000.00 for 2024-2025 only for a
virtual reality youth peace literacy initiative pilot program.

(3) From the general fund money appropriated in section 11,
there is allocated an amount not to exceed $1,000,000.00 for 2024-2025 only to
the American Lightweight Materials Manufacturing Innovation Institute, in
partnership with the Michigan Manufacturers Association, Amatrol, and the ATS
LAB Midwest. Funds received under this subsection must be used to provide high
schools and intermediate districts in this state with competency-based,
technology infused talent development programs that provide curricula,
e-learning, hands-on e-learning systems, curricula-specific training equipment,
installation, orientation, teacher training, industry-recognized skill
certifications, and connections to local manufacturers for students in high
schools and intermediate districts in this state.

(4) From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $2,500,000.00 for
2024-2025 only to the Dearborn City School District for costs to expand the
career and technical education program for the district, including, but not
limited to, expansion of a cybersecurity certificate program. Costs in this
subsection may include both operational and capital costs.

(5) From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $1,500,000.00 for
2024-2025 only to the Dearborn City School District to support the construction
of outdoor classrooms and other green space for Salina Intermediate School in
the Dearborn City School District.

(6) From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $2,000,000.00 for
2024-2025 only to the School District of the City of Harper Woods to support
the costs for construction and operation of the daily life skills training
center, an educational and skills development program with individualized
training to improve a child’s abilities to independently perform routine daily
activities and effectively use community resources.

(7) From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $2,500,000.00 for
2024-2025 only to the Lansing Public School District for development and
infrastructure improvements.

(8) From the state school aid fund money appropriated in
section 11, there is allocated for 2024-2025 only an amount not to exceed
$700,000.00 to Clintondale Community Schools for safety and security upgrades.

(9) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $500,000.00 to
the city of Algonac in St. Clair County to support asbestos remediation and
redevelopment in a former school building.

(10) From the state school aid fund money appropriated in
section 11, there is allocated for 2024-2025 only an amount not to exceed
$700,000.00 to South Lyon Community Schools for student mental health services.

(11) From the state school aid fund money appropriated in
section 11, there is allocated for 2024-2025 only an amount not to exceed
$200,000.00 to Farmington Public School District for high-intensity tutoring.

(12) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $2,100,000.00 to
the Marygrove Conservancy for the creation of the Marygrove Film School.

(13) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $2,900,000.00,
and from the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only an amount not to exceed $3,100,000.00 to Rudyard
Area Schools for infrastructure.

(14) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $250,000.00 to
Brookview Montessori School for structural updates, including, but not limited
to, electrical and HVAC.

(15) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $100,000.00 for
Okemos Public Montessori at Central for district lead abatement.

(16) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $500,000.00 to
Wellspring Detroit to support the academic and youth development program.

(17) From the state school aid fund money appropriated in
section 11, there is allocated for 2024-2025 only an amount not to exceed
$500,000.00 to a district or intermediate district to support the
implementation of the MI Student Voice Perception Survey.

(18) From the general fund money appropriated in section 11,
there is allocated for 2024-2025 only an amount not to exceed $3,700,000.00 to
the recipients identified in this subsection to support capital costs to
increase safety of student pedestrians.

(a) A recipient of a grant under this subsection shall use
the funds to increase the safety of student pedestrians through capital
improvements. A grant recipient may enter into agreements with other units of
local government to complete eligible projects. Improvements may include, but
are not limited to, all of the following:

(i) Signage and painting for crosswalks.

(ii) Installing or repairing sidewalks.

(iii) Adding turning lanes.

(iv) Installing or repairing traffic signal
lights.

(b) From the allocation in this subsection, $3,000,000.00 is
allocated to Macomb Township in Macomb County for road, signal, and pedestrian
crossing improvements at the intersection of 21 Mile Road and Heydenreich Road.
The purpose of the improvements is to increase safety for student pedestrians
at nearby schools.

(c) From the allocation in this subsection, $250,000.00 is
allocated to the Woodhaven-Brownstown School District to construct sidewalks to
connect nearby residential areas to schools in the district.

(d) From the allocation in this subsection, $450,000.00 is
allocated to the Village of Brooklyn to partner with the Columbia Charter
School District and Columbia Charter Township to improve student pedestrian
safety.

(e) The funds allocated under this subsection for 2024-2025
are a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to continue
to provide support for capital costs to increase safety of student pedestrians.
The estimated completion date of the work project is September 30, 2029.

(19) From the state school aid fund money appropriated in
section 11, there is allocated for 2024-2025 only an amount not to exceed
$7,000,000.00 to Detroit Public Schools Community District to offset the cost
of relocating the Davis Aerospace Technical High School to the Coleman A. Young
International Airport. Notwithstanding section 18a, funds allocated under this
subsection may be available for expenditure until September 30, 2027. A
recipient of funding under this subsection must return any unexpended funds to
the department in a manner prescribed by the department by not later than
October 30, 2027.

(20)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only an amount not to exceed $1,200,000.00 to Grand
Rapids Public Schools to supplement funding for the school meals program in
section 30d.

(21)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $750,000.00 to Livonia Public Schools to support
the Thrive Track – Healthy Living Skills for Independence program.

(22)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $450,000.00 to Grosse Pointe Public Schools for
technology costs.

(23)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $1,000,000.00 to a district or intermediate
district to partner with the Arab Community Center for Economic and Social
Services (ACCESS) in Dearborn to rehabilitate and expand the ACCESS Innovation
Center.

(24)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $1,200,000.00 to Lansing Public School District to
support renovation of the Don Johnson Fieldhouse and expansion of the Lansing
Student Development Program.

(25)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $1,000,000.00 to Clintondale Community Schools for
expenses for school buildings related to flood damage.

(26)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $3,000,000.00 to an intermediate district to
partner with the Michigan Regional Council of Carpenters and Millwrights, an
entity located in the city of Detroit, for the schools to tools program, which
exposes middle and high school students to the building trades and to
apprenticeship opportunities.

(27)
From the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only $12,000,000.00 to an intermediate district to
partner with the Sam Beauford Woodworking Institute, a 501(c)(3) entity located
in the city of Adrian, to support the expansion of education opportunities.

(28)
From the state school aid fund money appropriated in section 11, there is
allocated $245,000.00 for 2024-2025 only to Mid Peninsula School District for
improvements to a heating, ventilation, and air conditioning system.

(29)
The funds allocated under this section for 2024-2025 are a work project
appropriation, and any unexpended funds for 2024-2025 are carried forward into
2025-2026. The purpose of the work project is to complete projects described in
this section. The estimated completion date of the work project is September
30, 2026.

(30) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

Sec.
99h. (1) From the state school aid pupil support reserve fund money
appropriated in section 11, there is allocated an amount not to exceed
$5,000,000.00 for 2025-2026 only for competitive grants to districts and
intermediate districts, and from the general pupil support reserve fund money
appropriated in section 11, there is allocated $600,000.00 for 2025-2026 only
for competitive grants to nonpublic schools, that provide pupils in grades
pre-K to 12 with expanded opportunities to improve mathematics, science,
computer science, and technology skills by participating in robotics
competition programs hosted by program providers including, but not limited to,
FIRST (for inspiration and recognition of science and technology) Robotics,
including FIRST Lego League - Discover, Explore, and Challenge, FIRST Tech
challenge, and FIRST Robotics competition, LTU Robofest, MATE (Marine Advanced
Technical Education), REC (Robotics Education Competition) Foundation, Square
One Education Network, VEX, and other providers approved by the department. It
is the intent of the legislature that the appropriations under this section
will be funded with state school aid pupil support reserve fund money and
general pupil support reserve fund money through 2027-2028. All approved
providers shall make all programs available to students in this state
regardless of geographical location. Programs funded under this section are
intended to increase the number of pupils demonstrating proficiency in science
and mathematics on the state assessments and to increase the number of pupils
who are college- and career-ready upon high school graduation. Notwithstanding
section 17b, the department shall make grant payments to districts, nonpublic
schools, and intermediate districts under this section on a schedule determined
by the department. The department shall set maximum grant awards for each
different level of programming and competition in a manner that both maximizes
the number of teams that will be able to receive funds and expands the geographical
distribution of teams. Districts and intermediate districts that receive funds
under this section must provide relevant student participation information, as
determined by the department, to program and competition providers described in
this section. For a district or intermediate district to count a program
competition provider for purposes of payments under this section, the program
and competition providers must agree to aggregate data received by districts
and intermediate districts and provide this information to the department in a
form and manner determined by the department.

(2) The department shall do all of the following for purposes
of this section:

(a) Both of the following by not later than 60 days after the
state school aid appropriations bill for the current fiscal year is enacted
into law or October 1 of the current fiscal year, whichever is later:

(i) Open applications for funding under this
section to all districts, nonpublic schools, and intermediate districts.

(ii) Publish a list of approved programs and
vendors for purposes of this section in a manner that is accessible to all
applicants. To obtain approval under this subparagraph, a program or vendor
must submit to the department registration information, including any fees;
pledge that it will post this information on its website; and, by not later
than January 1 of the current fiscal year, submit this information to the
department for publication on the department’s website.

(b) By not later than 60 days after applications are opened
as described in subdivision (a), close applications under this section.

(c) By not later than 60 days after applications are closed
as described in subdivision (b), make all determinations concerning funding
under this section.

(d) By not later than July 1 of the current fiscal year,
publish a document listing the requirements for becoming an approved program or
vendor under subdivision (a).

(3) Except as otherwise provided under this subsection, if
funding under this section is insufficient to fulfill all funding requests by
qualified applicants under this section, the department shall prorate the total
funding allocated under this section equally among all qualified applicants.
However, for funding under this section toward grants under subsection (5)(b),
in its proration under this subsection, the department shall ensure that each
district is paid in an amount equal to the percentage the department would have
paid the district in grant funding under subsection (5)(b), but for proration
under this subsection, with no district receiving a grant under subsection
(5)(b) in an amount that is greater than the district’s total accrued costs
under subsection (5)(b).

(4) A district, nonpublic school, or intermediate district
applying for a grant under this section must submit an application in a form
and manner prescribed by the department. To be eligible for a grant, a district,
nonpublic school, or intermediate district must demonstrate in its application
that the district, nonpublic school, or intermediate district has established a
partnership for the purposes of the robotics program with at least 1 sponsor,
business entity, higher education institution, technical school, or individual,
must submit a budget, and must provide a local in-kind or cash match from other
private or local funds of at least 25% of the cost of the robotics program
award.

(5) The department shall distribute the grant funding under
this section for the following purposes:

(a) Grants to districts, nonpublic schools, or intermediate
districts to pay for stipends not to exceed $1,500.00 per building for
coaching.

(b) Grants to districts, nonpublic schools, or intermediate
districts for event registrations, materials, travel costs, and other expenses
associated with the preparation for and attendance at robotics events and
competitions.

(c) Grants to districts, nonpublic schools, or intermediate
districts for awards to teams that advance to the next levels of competition as
determined by the department. The department shall determine an equal amount
per team for those teams that advance.

(6) A nonpublic school that receives a grant under this
section may use the funds for either robotics or Science Olympiad programs.

(7) To be eligible to receive funds under this section, a
nonpublic school must be a nonpublic school registered with the department and
must meet all applicable state reporting requirements for nonpublic schools.

(8) To be eligible to receive a grant under this section, a
district, nonpublic school, or intermediate district must do all of the
following:

(a) If the district, nonpublic school, or intermediate
district is requesting funding for more than 1 team for a building, meet the
minimum requirements for team size as determined by the approved program
provider.

(b) Participate in at least the minimum number of
competitions as determined by the approved program provider.

(c) Participate in at least 1 in-person competition.

(9) For purposes of this section, an approved program or
vendor under this section that provides a program under this section shall not
work with the department to set prices or policies for the program.

(10) As used in this section, “current fiscal year” means the
fiscal year for which an allocation is made under this section.

Sec. 99ee. (1) From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed $3,000,000.00 for
2024-2025 only to Wayne RESA for the provision of programming, in partnership
with a nonprofit organization that is tax-exempt under section 501(c)(3) of the
internal revenue code of 1986, 26 USC 501, and that provides academic and
career support programs and services, to help more Hispanic students to
graduate from college. A district that receives funds under this section shall
contract with a nonprofit organization for purposes of this section that
received state funds for purposes described in this section in the immediately
preceding fiscal year.

(2) Notwithstanding section 17b, the department shall make
payments under this section on a schedule determined by the department.

(3) The funds allocated under this section for 2024-2025 are
a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to continue
to provide academic and career support programs and services and to help more
Hispanic students to graduate from college. The estimated completion date of
the work project is September 30, 2026.

Sec. 99mm. (1) From the state school aid fund money appropriated in section 11,
there is allocated $4,500,000.00 for 2024-2025 only to Menominee Area Public
Schools to cover the cost of an emergency water and asbestos event, cost inflation
for unfinished bond work delayed due to asbestos cleanup, and costs related to
consolidation activities.

(2) If, by June 20, 2035, Menominee Area Public Schools
receives reimbursement from the settlement of a court case addressing the
nonfulfillment of contracted duties regarding an emergency water and asbestos
event, Menominee Area Public Schools, not later than 90 days following the
receipt of that court settlement amount, must reimburse the department in the
amount it received from that settlement, or the full amount received under this
section, whichever is less. The department shall determine the mode of payment
for the reimbursement.

(3) The funds allocated under this section for 2024-2025 are
a work project appropriation, and any unexpended funds for 2024-2025 are
carried forward into 2025-2026. The purpose of the work project is to continue
to cover the cost of an emergency water and asbestos event, cost inflation for
unfinished bond work delayed due to asbestos cleanup, and costs related to
consolidation activities. The estimated completion date of the work project is
September 30, 2026.

(4)
Notwithstanding section 18a, funds allocated under subsection (1) may be
available for expenditure until September 30, 2027. The recipient of funding
under subsection (1) must return any unexpended funds to the department in the
manner prescribed by the department not later than October 30, 2027.

(5)
Notwithstanding section 17b, the department shall make payments under this
section on a schedule determined by the department.

Sec.
101. (1) To be eligible to receive state aid under this article, not later than
the fifth Wednesday after the pupil membership count day and not later than the
fifth Wednesday after the supplemental count day, each district superintendent
shall submit and certify to the center and the intermediate superintendent, in
the form and manner prescribed by the center, the number of pupils enrolled and
in regular daily attendance, including identification of tuition-paying pupils,
in the district as of the pupil membership count day and as of the supplemental
count day, as applicable, for the current school year. In addition, a district
maintaining school during the entire year shall submit and certify to the
center and the intermediate superintendent, in the form and manner prescribed
by the center, the number of pupils enrolled and in regular daily attendance in
the district for the current school year pursuant to rules promulgated by the
superintendent. Not later than the sixth Wednesday after the pupil
membership count day and not later than the sixth Wednesday after the
supplemental count day, the district shall resolve any pupil membership
conflicts with another district, correct any data issues, and recertify the
data in a form and manner prescribed by the center and file the certified data
with the intermediate superintendent. If a district fails to submit and certify
the attendance data, as required under this subsection, the center shall notify
the department and the department shall withhold state aid due to be
distributed under this article from the defaulting district immediately,
beginning with the next payment after the failure and continuing with each
payment until the district complies with this subsection. If a district does
not comply with this subsection by the end of the fiscal year, the district
forfeits the amount withheld. A person who willfully falsifies a figure or
statement in the certified and sworn copy of enrollment is subject to penalty
as prescribed by section 161.

(2) To be eligible to receive state aid under this article,
not later than the twenty-fourth Wednesday after the pupil membership count day
and not later than the twenty-fourth Wednesday after the supplemental count
day, an intermediate district shall submit to the center, in a form and manner
prescribed by the center, the audited enrollment and attendance data as
described in subsection (1) for the pupils of its constituent districts and of
the intermediate district. If an intermediate district fails to submit the
audited data as required under this subsection, the department shall withhold
state aid due to be distributed under this article from the defaulting
intermediate district immediately, beginning with the next payment after the
failure and continuing with each payment until the intermediate district
complies with this subsection. If an intermediate district does not comply with
this subsection by the end of the fiscal year, the intermediate district
forfeits the amount withheld.

(3) Except as otherwise provided in subsections (11) and (12)
all of the following apply to the provision of pupil instruction:

(a) Except as otherwise provided in this section, each
district shall provide at least 1,098 hours and 180 days of pupil instruction.
If a collective bargaining agreement that provides a complete school calendar
was in effect for employees of a district as of June 24, 2014, and if that
school calendar is not in compliance with this subdivision, then this
subdivision does not apply to that district until after the expiration of that
collective bargaining agreement. A district may apply for a waiver under subsection
(9) or subdivision (h) from the requirements of this subdivision.

(b) Except as otherwise provided in this article, a district
failing to comply with the required minimum hours and days of pupil instruction
under this subsection forfeits from its total state aid allocation an amount
determined by applying a ratio of the number of hours or days the district was
in noncompliance in relation to the required minimum number of hours and days
under this subsection. Not later than the first business day in August, the
board of each district shall either certify to the department that the district
was in full compliance with this section regarding the number of hours and days
of pupil instruction in the previous school year, or report to the department,
in a form and manner prescribed by the center, each instance of noncompliance.
If the district did not provide at least the required minimum number of hours
and days of pupil instruction under this subsection, the department shall make
the deduction of state aid in the following fiscal year from the first payment
of state school aid. A district is not subject to forfeiture of funds under
this subsection for a fiscal year in which a forfeiture was already imposed
under subsection (6).

(c) Hours or days lost because of strikes or teachers’
conferences are not counted as hours or days of pupil instruction.

(d) Except as otherwise provided in subdivisions (e) and (f),
if a district does not have at least 75% of the district’s membership in
attendance on any day of pupil instruction, the department shall pay the
district state aid in that proportion of 1/180 that the actual percent of
attendance bears to 75%.

(e) If a district adds 1 or more days of pupil instruction to
the end of its instructional calendar for a school year to comply with
subdivision (a) because the district otherwise would fail to provide the
required minimum number of days of pupil instruction even after the operation
of subsection (4) due to conditions not within the control of school
authorities, then subdivision (d) does not apply for any day of pupil
instruction that is added to the end of the instructional calendar. Instead,
for any of those days, if the district does not have at least 60% of the
district’s membership in attendance on that day, the department shall pay the
district state aid in that proportion of 1/180 that the actual percentage
of attendance bears to 60%. For any day of pupil instruction added to the
instructional calendar as described in this subdivision, the district shall
report to the department the percentage of the district’s membership that is in
attendance, in the form and manner prescribed by the department.

(f) At the request of a district that operates a
department-approved alternative education program and that does not provide
instruction for pupils in all of grades K to 12, the superintendent shall grant
a waiver from the requirements of subdivision (d). The waiver must provide that
an eligible district is subject to the proration provisions of subdivision (d)
only if the district does not have at least 50% of the district’s membership in
attendance on any day of pupil instruction. In order to be eligible for this
waiver, a district must maintain records to substantiate its compliance with
the following requirements:

(i) The district offers the minimum hours of
pupil instruction as required under this section.

(ii) For each enrolled pupil, the district
uses appropriate academic assessments to develop an individual education plan
that leads to a high school diploma.

(iii) The district tests each pupil to
determine academic progress at regular intervals and records the results of
those tests in that pupil’s individual education plan.

(g) All of the following apply to a waiver granted under
subdivision (f):

(i) If the waiver is for a blended model of
delivery, a waiver that is granted for the 2011-2012 fiscal year or a
subsequent fiscal year remains in effect unless it is revoked by the
superintendent.

(ii) If the waiver is for a 100% online model
of delivery and the educational program for which the waiver is granted makes
educational services available to pupils for a minimum of at least 1,098 hours
during a school year and ensures that each pupil participates in the
educational program for at least 1,098 hours during a school year, a waiver
that is granted for the 2011-2012 fiscal year or a subsequent fiscal year
remains in effect unless it is revoked by the superintendent.

(iii) A waiver that is not a waiver described
in subparagraph (i) or (ii) is
valid for 3 fiscal years, unless it is revoked by the superintendent, and must
be renewed at the end of the 3-year period to remain in effect.

(h) For the 2024-2025
school year only, a district does not need to meet the minimum number of hours
and days of pupil instruction requirement under subdivision (a) if that
district meets all of the following requirements:

(i) The district is located wholly or partially
in a county that is covered by a state of emergency declared by the governor.

(ii) A majority of the district board votes to
exempt the district from the minimum number of hours and days of pupil
instruction required under subdivision (a).

(iii) The vote by the district board under
subparagraph (ii) exempts the district
from providing only the hours and days of pupil instruction actually missed due
to the state of emergency.

(iv) The vote by the district board under
subparagraph (ii) exempts the district
from not more than 15 days of pupil instruction required under subdivision (a).
The amount that may be exempted under this subdivision is in addition to any
days counted as pupil instruction under subsection (4).

(i) The superintendent shall promulgate rules
for the implementation of this subsection.

(4) All of the following apply to the counting of days and
hours of pupil instruction under this section:

(a) Except as otherwise provided in this subsection, the
first 6 days or the equivalent number of hours for which pupil instruction is
not provided because of conditions not within the control of school
authorities, such as severe storms, fires, epidemics, utility power
unavailability, water or sewer failure, or health conditions as defined by the
city, county, or state health authorities, are counted as hours and days of
pupil instruction.

(b) With the approval of the superintendent of public
instruction, the department shall count as hours and days of pupil instruction
for a fiscal year not more than 3 additional days or the equivalent number of
additional hours for which pupil instruction is not provided in a district due
to unusual and extenuating occurrences resulting from conditions not within the
control of school authorities such as those conditions described in this
subsection.

(c) A district that counts hours or days of professional
development for teachers as hours or days of pupil instruction, as provided
under subsection (10), is eligible to have additional hours or days counted as
hours and days of pupil instruction as provided under subdivision (b) to the
same extent as a district that does not count hours or days of professional
development for teachers as hours or days of pupil instruction.

(d) In deciding whether or
not to approve the counting
of additional hours or days of pupil instruction under subdivision (b) for a
district, the superintendent of public instruction shall not take into account
whether or not the district counts hours or days of professional development
for teachers as hours or days of pupil instruction, as provided under
subsection (10).

(e) Subsequent hours or days beyond those described in
subdivisions (a) and (b) are not counted as hours or days of pupil instruction.

(5) A district does not forfeit part of its state aid
appropriation because it adopts or has in existence an alternative scheduling
program for pupils in kindergarten if the program provides at least the number
of hours required under subsection (3) for a full-time equated membership for a
pupil in kindergarten as provided under section 6(4).

(6) In addition to any other penalty or forfeiture under this
section, if at any time the department determines that 1 or more of the
following have occurred in a district, the district forfeits in the current
fiscal year beginning in the next payment to be calculated by the department a
proportion of the funds due to the district under this article that is equal to
the proportion below the required minimum number of hours and days of pupil
instruction under subsection (3), as specified in the following:

(a) The district fails to operate its schools for at least
the required minimum number of hours and days of pupil instruction under
subsection (3) in a school year, including hours and days counted under
subsection (4).

(b) The board of the district takes formal action not to
operate its schools for at least the required minimum number of hours and days
of pupil instruction under subsection (3) in a school year, including hours and
days counted under subsection (4).

(7) In providing the minimum number of hours and days of
pupil instruction required under subsection (3), a district shall use the
following guidelines, and a district shall maintain records to substantiate its
compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil
must be scheduled for at least the required minimum number of hours of
instruction, excluding study halls, or at least the sum of 90 hours plus the
required minimum number of hours of instruction, including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in
a block schedule may be considered instructional time, unless that time is
determined in an audit to be a study hall period.

(c) Except as otherwise provided in this subdivision, a pupil
in grades 9 to 12 for whom a reduced schedule is determined to be in the
individual pupil’s best educational interest, or a pupil in grades 6 to 8 for whom a
reduced schedule is determined to be in the individual pupil’s best educational
interest due to the pupil’s participation in an advanced curriculum, must be
scheduled for a number of hours equal to at least 80% of the required minimum
number of hours of pupil instruction to be considered a full-time equivalent
pupil. A pupil in grades 6 to 12 who is scheduled in a 4-block schedule may
receive a reduced schedule under this subsection if the pupil is scheduled for
a number of hours equal to at least 75% of the required minimum number of hours
of pupil instruction to be considered a full-time equivalent pupil.

(d) For a pupil in grades 9 to 12 enrolled in a cooperative
education program, or for a special education pupil, in determining full-time
equated membership for that pupil, the pupil is not considered less than a
full-time equated pupil solely because of the effect of the pupil’s enrollment
in the cooperative education program or special education program, including
necessary travel time, on the number of class hours provided by the district to
the pupil.

(e) In grades 7 through 12, instructional time that is part
of a Junior Reserve Officer Training Corps (JROTC) program is considered to be
pupil instruction time regardless of whether the instructor is a certificated
teacher if all of the following are met:

(i) The instructor has met all of the
requirements established by the United States Department of Defense and the
applicable branch of the armed services for serving as an instructor in the
Junior Reserve Officer Training Corps program.

(ii) The board of the district or
intermediate district employing or assigning the instructor complies with the
requirements of sections 1230 and 1230a of the revised school code, MCL
380.1230 and 380.1230a, with respect to the instructor to the same extent as if
employing the instructor as a regular classroom teacher.

(8) Except as otherwise provided in subsections (11) and
(12), the department shall apply the guidelines under subsection (7) in
calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal
year, the superintendent shall waive for a district the minimum number of hours
and days of pupil instruction requirement of subsection (3) for a
department-approved alternative education program or another innovative program
approved by the department, including a 4-day school week. If a district
applies for and receives a waiver under this subsection and complies with the
terms of the waiver, the district is not subject to forfeiture under this
section for the specific program covered by the waiver. If the district does
not comply with the terms of the waiver, the amount of the forfeiture is
calculated based upon a comparison of the number of hours and days of pupil
instruction actually provided to the minimum number of hours and days of pupil
instruction required under subsection (3). A district shall report pupils
enrolled in a department-approved alternative education program under this
subsection to the center in a form and manner determined by the center. All of
the following apply to a waiver granted under this subsection:

(a) If the waiver is for a blended model of delivery, a
waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal
year remains in effect unless it is revoked by the superintendent.

(b) If the waiver is for a 100% online model of delivery and
the educational program for which the waiver is granted makes educational
services available to pupils for a minimum of at least 1,098 hours during a
school year and ensures that each pupil is on track for course completion at
proficiency level, a waiver that is granted for the 2011-2012 fiscal year or a
subsequent fiscal year remains in effect unless it is revoked by the
superintendent.

(c) A waiver that is not a waiver described in subdivision
(a) or (b) is valid for 3 fiscal years, unless it is revoked by the
superintendent, and must be renewed at the end of the 3-year period to remain
in effect.

(10) A district may count up to 38 hours of professional
development for teachers as hours of pupil instruction. All of the following
apply to the counting of professional development as pupil instruction under
this subsection:

(a) If the professional development exceeds 5 hours in a
single day, that day may be counted as a day of pupil instruction.

(b) At least 8 hours of the professional development counted
as hours of pupil instruction under this subsection must be recommended by a
districtwide professional development advisory committee appointed by the
district board. The advisory committee must be composed of teachers employed by
the district who represent a variety of grades and subject matter
specializations, including special education; nonteaching staff; parents; and
administrators. The majority membership of the committee must be composed of
teaching staff.

(c) Professional development provided online is allowable and
encouraged, as long as the instruction has been approved by the district. The
department shall issue a list of approved online professional development
providers that must include the Michigan Virtual School.

(d) Professional development may only be counted as hours of
pupil instruction under this subsection for the pupils of those teachers
scheduled to participate in the professional development.

(e) The professional development must meet all of the
following to be counted as pupil instruction under this subsection:

(i) Be aligned to the school or district
improvement plan for the school or district in which the professional
development is being provided.

(ii) Be linked to 1 or more criteria in the
evaluation tool developed or adopted by the district or intermediate district
under section 1249 of the revised school code, MCL 380.1249.

(iii) Has been approved by the department as
counting for state continuing education clock hours. The number of hours of
professional development counted as hours of pupil instruction under this
subsection may not exceed the number of state continuing education clock hours
for which the professional development was approved.

(iv) Not more than a combined total of 10
hours of the professional development takes place before the first scheduled
day of school for the school year ending in the fiscal year and after the last
scheduled day of school for that school year.

(v) Not more than 10 hours of the
professional development takes place in a single month.

(vi) At least 75% of teachers scheduled to
participate in the professional development are in attendance.

(11) Subsections (3) and (8) do not apply to a school of
excellence that is a cyber school, as that term is defined in section 551 of
the revised school code, MCL 380.551, and is in compliance with section 553a of
the revised school code, MCL 380.553a. Beginning July 1, 2021, this subsection
is subject to section 8c. It is the intent of the legislature that the
immediately preceding sentence apply retroactively and is effective July 1,
2021.

(12) Subsections (3) and (8) do not apply to eligible pupils
enrolled in a dropout recovery program that meets the requirements of section
23a. As used in this subsection, “eligible pupil” means that term as defined in
section 23a.

(13) At least every 2 years the superintendent shall review
the waiver standards set forth in the pupil accounting and auditing manuals to
ensure that the waiver standards and waiver process continue to be appropriate
and responsive to changing trends in online learning. The superintendent shall
solicit and consider input from stakeholders as part of this review.

Sec.
104. (1) To receive state aid under this article, a district shall comply with
sections 1249, 1278a, 1278b, 1279g, and 1280b of the revised school code, MCL
380.1249, 380.1278a, 380.1278b, 380.1279g, and 380.1280b, and 1970 PA 38, MCL
388.1081 to 388.1086. Subject to subsection (2), from the state school aid fund
money appropriated in section 11, there is allocated for 2024-2025 $39,509,400.00,
and there is allocated for 2025-2026 $37,509,400.00, for payments on behalf of
districts for costs associated with complying with those provisions of law. In
addition, from the federal funds appropriated in section 11, there is allocated
for 2025-2026 an amount estimated at $8,000,000.00 funded from DED-OESE, title
VI, state assessment funds, and from DED-OSERS, part B of the individuals with
disabilities education act, 20 USC 1411 to 1419, plus any carryover federal
funds from previous year appropriations, for the purposes of complying with the
every student succeeds act, Public Law 114-95.

(2) The results of each test administered as part of the
Michigan student test of educational progress (M‑STEP), including tests
administered to high school students, must include an item analysis that lists
all items that are counted for individual pupil scores and the percentage of
pupils choosing each possible response. The department shall work with the center
to identify the number of students enrolled at the time assessments are given
by each district. In calculating the percentage of pupils assessed for a
district’s scorecard, the department shall use only the number of pupils
enrolled in the district at the time the district administers the assessments
and shall exclude pupils who enroll in the district after the district
administers the assessments.

(3) The department shall distribute federal funds allocated
under this section in accordance with federal law and with flexibility
provisions outlined in Public Law 107-116, and in the education flexibility
partnership act of 1999, Public Law 106-25.

(4) The department may recommend, but may not require,
districts to allow pupils to use an external keyboard with tablet devices for
online M-STEP testing, including, but not limited to, open-ended test items
such as constructed response or equation builder items.

(5) Notwithstanding section 17b, the department shall make
payments on behalf of districts, intermediate districts, and other eligible
entities under this section on a schedule determined by the department.

(6) From the allocation in subsection (1), there is allocated
$500,000.00 for 2024-2025 and 2025-2026 for the operation of an online
reporting tool to provide student-level assessment data in a secure environment
to educators, parents, and pupils immediately after assessments are scored. The
department and the center shall ensure that any data collected by the online
reporting tool do not provide individually identifiable student data to the
federal government.

(7) As used in this section:

(a) “DED” means the United States Department of Education.

(b) “DED-OESE” means the DED Office of Elementary and
Secondary Education.

(c) “DED-OSERS” means the DED Office of Special Education and
Rehabilitative Services.

Sec.
104b. (1) In order to receive state aid under this article, a district shall
comply with this section and shall administer the Michigan merit examination to
pupils in grade 11, and to pupils in grade 12 who did not take the complete
Michigan merit examination in grade 11, as provided in this section. The
Michigan merit examination consists of a college entrance test, work skills
test, and the summative assessment known as the Michigan student test of
educational progress (M-STEP).

(2) For the purposes of this section, the department of
technology, management, and budget shall contract with 1 or more providers to
develop, supply, and score the Michigan merit examination. The Michigan merit
examination shall consist of all of the following:

(a) Assessment instruments that measure English language
arts, mathematics, reading, and science, and are used by the majority of
colleges and universities in this state for entrance purposes. This may include
1 or more writing components. In selecting assessment instruments to fulfill
the requirements of this subdivision, the department may consider the degree to
which those assessment instruments are aligned to this state’s content
standards.

(b) One or more tests from 1 or more test developers that
assess a pupil’s ability to apply at least reading and mathematics skills in a
manner that is intended to allow employers to use the results in making
employment decisions. The department of technology, management, and budget and
the superintendent shall ensure that any test or tests selected under this
subdivision have all the components necessary to allow a pupil to be eligible
to receive the results of a nationally recognized evaluation of workforce
readiness if the pupil’s test performance is adequate.

(c) A social studies component.

(d) Any other component that is necessary to obtain the
approval of the United States Department of Education to use the Michigan merit
examination for the purposes of the no child left behind act of 2001, Public
Law 107‑110, or the every student succeeds act, Public Law 114-95.

(3) In addition to all other requirements of this section,
all of the following apply to the Michigan merit examination:

(a) The department of technology, management, and budget and
the superintendent shall ensure that any contractor used for scoring the
Michigan merit examination supplies an individual report for each pupil that
will identify for the pupil’s parents and teachers whether the pupil met
expectations or failed to meet expectations for each standard, to allow the
pupil’s parents and teachers to assess and remedy problems before the pupil
moves to the next grade.

(b) The department of technology, management, and budget and
the superintendent shall ensure that any contractor used for scoring,
developing, or processing the Michigan merit examination meets quality
management standards commonly used in the assessment industry, including at
least meeting level 2 of the capability maturity model developed by the
Software Engineering Institute of Carnegie Mellon University for the first year
the Michigan merit examination is offered to all grade 11 pupils and at least
meeting level 3 of the capability maturity model for subsequent years.

(c) The department of technology, management, and budget and
the superintendent shall ensure that any contract for scoring, administering,
or developing the Michigan merit examination includes specific deadlines for
all steps of the assessment process, including, but not limited to, deadlines
for the correct testing materials to be supplied to schools and for the correct
results to be returned to schools, and includes penalties for noncompliance
with these deadlines.

(d) The superintendent shall ensure that the Michigan merit
examination meets all of the following:

(i) Is designed to test pupils on this state’s
content standards in all subjects tested.

(ii) Complies with requirements of the no
child left behind act of 2001, Public Law 107-110 or the every student succeeds
act, Public Law 114-95.

(iii) Is consistent with the code of fair
testing practices in education prepared by the Joint Committee on Testing
Practices of the American Psychological Association.

(iv) Is factually accurate. If the
superintendent determines that a question is not factually accurate and should
be excluded from scoring, the state board and the superintendent shall ensure
that the question is excluded from scoring.

(4) A district shall include on each pupil’s high school
transcript all of the following:

(a) For each high school graduate who has completed the
Michigan merit examination under this section, the pupil’s scaled score on each
subject area component of the Michigan merit examination.

(b) The number of school days the pupil was in attendance at
school each school year during high school and the total number of school days
in session for each of those school years.

(5) The superintendent shall work with the provider or
providers of the Michigan merit examination to produce Michigan merit
examination subject area scores for each pupil participating in the Michigan
merit examination. To the extent that the department determines that additional
test items beyond those included in the college entrance component of the
Michigan merit examination are required in a particular subject area, the
department shall ensure that all test items in that subject area are scaled and
merged for the purposes of producing a Michigan merit examination subject area
score. The superintendent shall design and distribute to districts,
intermediate districts, and nonpublic schools a simple and concise document
that describes the scoring for each subject area and indicates the scaled score
ranges for each subject area.

(6) The Michigan merit examination shall be administered in
each district during the last 12 weeks of the district’s school year. The
superintendent shall ensure that the Michigan merit examination is scored and
the scores are returned to pupils, their parents or legal guardians, and
districts not later than the beginning of the pupil’s first semester of grade
12. The returned scores shall indicate at least the pupil’s scaled score for
each subject area component and the range of scaled scores for each subject
area. In reporting the scores to pupils, parents, and schools, the
superintendent shall provide standards-specific, meaningful, and timely
feedback on the pupil’s performance on the Michigan merit examination.

(7) A district shall administer the complete Michigan merit
examination to a pupil only once and shall not administer the complete Michigan
merit examination to the same pupil more than once. If a pupil does not take
the complete Michigan merit examination in grade 11, the district shall
administer the complete Michigan merit examination to the pupil in grade 12. If
a pupil chooses to retake the college entrance examination component of the
Michigan merit examination, as described in subsection (2)(a), the pupil may do
so through the provider of the college entrance examination component and the
cost of the retake is the responsibility of the pupil unless all of the
following are met:

(a) The pupil has taken the complete Michigan merit
examination.

(b) The pupil meets the income eligibility criteria for free
breakfast, lunch, or milk, as determined under the Richard B. Russell national
school lunch act, 42 USC 1751 to 1769i.

(c) The pupil has applied to the provider of the college
entrance examination component for a scholarship or fee waiver to cover the
cost of the retake and that application has been denied.

(d) After taking the complete Michigan merit examination, the
pupil has not already received a free retake of the college entrance
examination component paid for either by this state or through a scholarship or
fee waiver by the provider.

(8) The superintendent shall ensure that the length of the
Michigan merit examination and the combined total time necessary to administer
all of the components of the Michigan merit examination are the shortest
possible that will still maintain the degree of reliability and validity of the
Michigan merit examination results determined necessary by the superintendent.
The superintendent shall ensure that the maximum total combined length of time
that schools are required to set aside for pupils to answer all test questions
on the Michigan merit examination does not exceed 8 hours if the superintendent
determines that sufficient alignment to applicable Michigan merit curriculum
content standards can be achieved within that time limit.

(9) A district shall provide accommodations to a pupil with
disabilities for the Michigan merit examination, as provided under section 504
of title V of the rehabilitation act of 1973, 29 USC 794; subtitle A of title
II of the Americans with disabilities act of 1990, 42 USC 12131 to 12134; the
individuals with disabilities education act amendments of 1997, Public Law
105-17; and the implementing regulations for those statutes. The provider or
providers of the Michigan merit examination and the superintendent shall
mutually agree upon the accommodations to be provided under this subsection.

(10) To the greatest extent possible, the Michigan merit
examination shall be based on this state’s content standards, as appropriate.
Annually, after each administration of the Michigan merit examination, the
department shall provide a report of the points per standard so that teachers
will know what content will be covered within the Michigan merit examination.
The department may augment the college entrance and work skills components of
the Michigan merit examination to develop the assessment, depending on the
alignment of those components to this state’s content standards. If these
components do not align to these standards, the department shall produce
additional components as required by law, while minimizing the amount of time
needed for assessments.

(11) A child who is a student in a nonpublic school or home
school may take the Michigan merit examination under this section. To take the
Michigan merit examination, a child who is a student in a home school shall
contact the district in which the child resides, and that district shall
administer the Michigan merit examination, or the child may take the Michigan
merit examination at a nonpublic school if allowed by the nonpublic school.
Upon request from a nonpublic school, the superintendent shall direct the
provider or providers to supply the Michigan merit examination to the nonpublic
school and the nonpublic school may administer the Michigan merit examination.
If a district administers the Michigan merit examination under this subsection
to a child who is not enrolled in the district, the scores for that child are
not considered for any purpose to be scores of a pupil of the district.

(12) In contracting under subsection (2), the department of
technology, management, and budget shall consider a contractor that provides
electronically-scored essays with the ability to score constructed response
feedback in multiple languages and provide ongoing instruction and feedback.

(13) The purpose of the Michigan merit examination is to
assess pupil performance in mathematics, science, social studies, and English
language arts for the purpose of improving academic achievement and
establishing a statewide standard of competency. The assessment under this
section provides a common measure of data that will contribute to the
improvement of Michigan schools’ curriculum and instruction by encouraging
alignment with Michigan’s curriculum framework standards and promotes pupil
participation in higher level mathematics, science, social studies, and English
language arts courses. These standards are based upon the expectations of what
pupils should learn through high school and are aligned with national
standards.

(14) For a pupil enrolled in a middle college program, other
than a middle college operated as a shared educational entity or a specialized
shared educational entity, if the pupil receives at least 50% of the pupil’s
instruction at the high school while in grade 11, the Michigan merit
examination shall be administered to the pupil at the high school at which the
pupil receives high school instruction, and the department shall include the
pupil’s scores on the Michigan merit examination in the scores for that high
school for all purposes for which a school’s or district’s results are
reported. The department shall allow the middle college program to use a 5-year
graduation rate for determining adequate yearly progress. As used in this
subsection, “middle college” means a program consisting of a series of courses
and other requirements and conditions, including an early college or other
program created under a memorandum of understanding, that allows a pupil to
graduate from high school with both a high school diploma and a certificate or
degree from a community college or state public university.

(15) As used in this section:

(a) “English language arts” means reading and writing.

(b) “Social studies” means United States history, world
history, world geography, economics, and American government.

Sec.
104h. (1) From the state school aid fund money appropriated under section 11,
there is allocated for 2025-2026 an amount not to exceed $11,500,000.00 to
districts to implement benchmark assessments during the 2025-2026 school year.
All of the following apply to the benchmark assessment system described in this
subsection:

(a) The system must provide for all of the following:

(i) That, within the first 9 weeks of the
2025-2026 school year, the district shall administer 1 or more benchmark
assessments provided by a provider approved under subsection (6), benchmark
assessments described in subdivision (b), or local benchmark assessments, or
any combination thereof, to all pupils in grades K to 8 to measure proficiency
in reading and mathematics.

(ii) That, in addition to the benchmark
assessment or benchmark assessments administered under subparagraph (i), by not later than the last day of the 2025-2026 school
year, the district shall administer the benchmark assessment or assessments
administered under subparagraph (i) to all pupils
in grades K to 8 to measure proficiency in reading and mathematics. To support
fall to spring growth calculations, the same benchmark assessment that is
administered in the fall must be administered in the spring.

(b) Except as otherwise provided in this section, a district
may administer 1 or more of the following benchmark assessments toward meeting
the requirements under subdivision (a):

(i) A benchmark assessment in reading for
students in grades K to 9 that contains progress monitoring tools and enhanced
diagnostic assessments.

(ii) A benchmark assessment in math for
students in grades K to 8 that contains progress monitoring tools.

(c) The system must provide that, to the extent practicable,
if a district administers a benchmark assessment or benchmark assessments under
this section, the district shall administer the same benchmark assessment or
benchmark assessments provided by a provider approved under subsection (6),
benchmark assessment or benchmark assessments described in subdivision (b), or
local benchmark assessment or local benchmark assessments that it administered
to pupils in previous school years, as applicable.

(d) The system must provide that, if a district administers a
benchmark assessment or benchmark assessments under this section, the district
shall provide each pupil’s data from the benchmark assessment or benchmark
assessments, as available, to the pupil’s parent or legal guardian within 30
days of administering the benchmark assessment or benchmark assessments.

(e) The system must provide that, if a local benchmark
assessment or local benchmark assessments are administered under subdivision
(a), the district shall report to the department, in a form and manner
prescribed by the department, the local benchmark assessment or local benchmark
assessments that were administered and how that assessment or those assessments
measure changes, including any losses, as applicable, in learning, and the
district’s plan for addressing any losses in learning.

(f) The system must provide that, by not later than 30 days
after a benchmark assessment or benchmark assessments are administered under
subdivision (a)(ii), or within a time frame specified by the
department, the district shall send benchmark assessment data, including grade
level, student demographics, and mode of instruction, to the department in a
form and manner prescribed by the department, from all benchmark assessments
administered in the 2025-2026 school year, excluding data from a local
benchmark assessment, as applicable. If available, the data described in this
subdivision must include information concerning pupil growth from fall 2025 to
spring 2026.

(2) To receive funding under this section, a district must do
all of the following:

(a) Apply for the funding in a form and manner prescribed by
the department.

(b) Administer 1 or more of the benchmark assessments
described in subsection (6), excluding the benchmark assessment described in
subsection (4).

(c) Administer the same benchmark assessment or assessments
in both the fall and spring, as required under this section.

(d) Meet all reporting requirements pertaining to assessment
and mode-of-instruction data outlined in this section.

(3) Subject to subsection (2), the department shall pay an
equal amount per membership pupil in grades K to 8 in the district to each
district that applies for funding under this section.

(4) The department shall make 1 of the benchmark assessments
provided by a provider approved under subsection (6) available to districts at
no cost to the districts for purposes of meeting the requirements under this
section. The benchmark assessment described in this subsection must meet all of
the following:

(a) Be aligned to the content standards of this state.

(b) Complement the state’s summative assessment system.

(c) Be internet-delivered and include a standards-based
assessment.

(d) Provide information on pupil achievement with regard to
learning content required in a given year or grade span.

(e) Provide timely feedback to pupils and teachers.

(f) Be nationally normed.

(g) Provide information to educators about student growth and
allow for multiple testing opportunities.

(5) By not later than November 15 of each year subsequent to
a year in which funding is appropriated under this section, the department
shall submit a report to the house and senate appropriations committees, the
house and senate appropriations subcommittees on school aid, and the house and
senate fiscal agencies regarding the benchmark assessment data received under
this section, disaggregated by grade level and demographic subgroup for each
district. If information concerning pupil growth is included in the data
described in this subsection, it must be incorporated in the report described
in this subsection.

(6) The department shall approve at least 4 but not more than
6 providers of benchmark assessments for the purposes of this section. The
department shall inform districts of all of the providers approved under this
subsection in an equitable manner. The benchmark assessments, with the
exclusion of the benchmark assessment described in subsection (4), provided by
approved providers under this subsection must meet all of the following:

(a) Be aligned to the content standards of this state.

(b) Complement the state’s summative assessment system.

(c) Be internet-delivered and include a standards-based
remote, in-person, or both remote and in-person assessment using a
computer-adaptive model to target the instructional level of each pupil.

(d) Provide information on pupil achievement with regard to
learning content required in a given year or grade span.

(e) Provide immediate feedback to pupils and teachers.

(f) Be nationally normed.

(g) Provide multiple measures of growth and provide for
multiple testing opportunities.

Sec.
107. (1) From the state school aid fund appropriation in section 11, there is
allocated an amount not to exceed $32,913,600.00 for 2025-2026 for adult
education programs authorized under this section. Except as otherwise provided
under subsections (14) and (15), funds allocated under this section are
restricted for adult education programs as authorized under this section only.
A recipient of funds under this section shall not use those funds for any other
purpose.

(2) To be eligible for funding under this section, an
eligible adult education provider shall employ certificated teachers and
qualified administrative staff and shall offer continuing education
opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this
section, an individual must be enrolled in an adult basic education program, an
adult secondary education program, an adult English as a second language
program, a high school equivalency test preparation program, or a high school
completion program, that meets the requirements of this section, and for which
instruction is provided, and the individual must be at least 18 years of age by
July 1 of the program year and the individual’s graduating class must have
graduated.

(4) By April 1 of each fiscal year for which funding is allocated
under this section, the intermediate districts within a prosperity region or
subregion shall determine which intermediate district will serve as the
prosperity region’s or subregion’s fiscal agent for the next fiscal year and
shall notify the department in a form and manner determined by the department.
The department shall approve or disapprove of the prosperity region’s or
subregion’s selected fiscal agent. From the funds allocated under subsection
(1), an amount as determined under this subsection is allocated to each
intermediate district serving as a fiscal agent for adult education programs in
each of the prosperity regions or subregions identified by the department. An
intermediate district shall not use more than 5% of the funds allocated under
this subsection for administration costs for serving as the fiscal agent. The
allocation provided to each intermediate district serving as a fiscal agent
must be calculated as follows:

(a) Sixty percent of this portion of the funding must be
distributed based upon the proportion of the state population of individuals
between the ages of 18 and 24 that are not high school graduates that resides
in each of the prosperity regions or subregions located within the intermediate
district, as reported by the most recent 5‑year estimates from the
American Community Survey (ACS) from the United States Census Bureau.

(b) Thirty-five percent of this portion of the funding must
be distributed based upon the proportion of the state population of individuals
age 25 or older who are not high school graduates that resides in each of the
prosperity regions or subregions located within the intermediate district, as
reported by the most recent 5-year estimates from the ACS from the United
States Census Bureau.

(c) Five percent of this portion of the funding must be
distributed based upon the proportion of the state population of individuals
age 18 or older who lack basic English language proficiency that resides in
each of the prosperity regions or subregions located within the intermediate
district, as reported by the most recent 5-year estimates from the ACS from the
United States Census Bureau.

(5) To be an eligible fiscal agent, an intermediate district
must agree to do the following in a form and manner determined by the
department:

(a) Distribute funds to adult education programs in a
prosperity region or subregion as described in this section.

(b) Collaborate with the career and educational advisory
council, which is an advisory council of the workforce development boards
located in the prosperity region or subregion, or its successor, to develop a
regional strategy that aligns adult education programs and services into an
efficient and effective delivery system for adult education learners, with
special consideration for providing contextualized learning and career pathways
and addressing barriers to education and employment.

(c) Collaborate with the career and educational advisory
council, which is an advisory council of the workforce development boards
located in the prosperity region or subregion, or its successor, to create a
local process and criteria that will identify eligible adult education
providers to receive funds allocated under this section based on location,
demand for services, past performance, quality indicators as identified by the
department, and cost to provide instructional services. The fiscal agent shall determine
all local processes, criteria, and provider determinations. However, the local
processes, criteria, and provider services must be approved by the department
before funds may be distributed to the fiscal agent.

(d) Provide oversight to its adult education providers
throughout the program year to ensure compliance with the requirements of this
section.

(e) Report adult education program and participant data and
information as prescribed by the department.

(6) An adult basic education program, an adult secondary
education program, or an adult English as a second language program operated on
a year-round or school year basis may be funded under this section, subject to
all of the following:

(a) The program enrolls adults who are determined by a
department-approved assessment, in a form and manner prescribed by the
department, to be below twelfth grade level in reading or mathematics, or both,
or to lack basic English proficiency.

(b) The program tests individuals for eligibility under
subdivision (a) before enrollment and upon completion of the program in
compliance with the state-approved assessment policy.

(c) A participant in an adult basic education program is
eligible for reimbursement until 1 of the following occurs:

(i) The participant’s reading and
mathematics proficiency are assessed at or above the ninth grade level.

(ii) The participant fails to show progress
on 2 successive assessments after having completed at least 450 hours of
instruction.

(d) A participant in an adult secondary education program is
eligible for reimbursement until 1 of the following occurs:

(i) The participant’s reading and
mathematics proficiency are assessed above the twelfth grade level.

(ii) The participant fails to show progress
on 2 successive assessments after having at least 450 hours of instruction.

(e) A funding recipient enrolling a participant in an English
as a second language program is eligible for funding according to subsection
(9) until the participant meets 1 of the following:

(i) The participant is assessed as having
attained basic English proficiency as determined by a department-approved
assessment.

(ii) The participant fails to show progress
on 2 successive department-approved assessments after having completed at least
450 hours of instruction. The department shall provide information to a funding
recipient regarding appropriate assessment instruments for this program.

(7) A high school equivalency test preparation program
operated on a year-round or school year basis may be funded under this section,
subject to all of the following:

(a) The program enrolls adults who do not have a high school
diploma or a high school equivalency certificate.

(b) The program administers a pre-test approved by the
department before enrolling an individual to determine the individual’s
literacy levels, administers a high school equivalency practice test to
determine the individual’s potential for success on the high school equivalency
test, and administers a post-test upon completion of the program in compliance
with the state-approved assessment policy.

(c) A funding recipient receives funding according to
subsection (9) for a participant, and a participant may be enrolled in the
program until 1 of the following occurs:

(i) The participant achieves a high school
equivalency certificate.

(ii) The participant fails to show progress
on 2 successive department-approved assessments used to determine readiness to
take a high school equivalency test after having completed at least 450 hours
of instruction.

(8) A high school completion program operated on a year-round
or school year basis may be funded under this section, subject to all of the
following:

(a) The program enrolls adults who do not have a high school
diploma.

(b) The program tests participants described in subdivision
(a) before enrollment and upon completion of the program in compliance with the
state-approved assessment policy.

(c) A funding recipient receives funding according to
subsection (9) for a participant in a course offered under this subsection
until 1 of the following occurs:

(i) The participant passes the course and
earns a high school diploma.

(ii) The participant fails to earn credit in
2 successive semesters or terms in which the participant is enrolled after
having completed at least 900 hours of instruction.

(9) The department shall make payments to a funding recipient
under this section in accordance with all of the following:

(a) Statewide allocation criteria, including 3-year average
enrollments, census data, and local needs.

(b) Participant completion of the adult basic education
objectives by achieving an educational gain as determined by the national
reporting system levels; for achieving basic English proficiency, as determined
by the department; for achieving a high school equivalency certificate or
passage of 1 or more individual high school equivalency tests; for attainment
of a high school diploma or passage of a course required for a participant to
attain a high school diploma; for enrollment in a postsecondary institution; or
for entry into or retention of employment, as applicable.

(c) Participant completion of core indicators as identified
in the workforce innovation and opportunity act, Public Law 113-128.

(d) Allowable expenditures.

(10) An individual who is not eligible to be a participant
funded under this section may receive adult education services upon the payment
of tuition. In addition, an individual who is not eligible to be served in a
program under this section due to the program limitations specified in
subsection (6), (7), or (8) may continue to receive adult education services in
that program upon the payment of tuition. The local or intermediate district
conducting the program shall determine the tuition amount.

(11) An individual who is an inmate in a state correctional
facility is not counted as a participant under this section.

(12) A funding recipient shall not commingle money received
under this section or from another source for adult education purposes with any
other funds and shall establish a separate ledger account for funds received
under this section. This subsection does not prohibit a district from using
general funds of the district to support an adult education or community
education program.

(13) A funding recipient receiving funds under this section
may establish a sliding scale of tuition rates based upon a participant’s
family income. A funding recipient may charge a participant tuition to receive
adult education services under this section from that sliding scale of tuition
rates on a uniform basis. The amount of tuition charged per participant must
not exceed the actual operating cost per participant minus any funds received
under this section per participant. A funding recipient may not charge a
participant tuition under this section if the participant’s income is at or
below 200% of the federal poverty guidelines published by the United States
Department of Health and Human Services.

(14) To receive funds under this section, a funding recipient
shall furnish to the department, in a form and manner determined by the
department, all information needed to administer this program and meet federal
reporting requirements; shall allow the department or the department’s designee
to review all records related to the program for which it receives funds; and
shall reimburse the state for all disallowances found in the review, as
determined by the department. In addition, a funding recipient shall agree to
pay to a career and technical education program under section 61a the amount of
funding received under this section in the proportion of career and technical
education coursework used to satisfy adult basic education programming, as
billed to the funding recipient by programs operating under section 61a.

(15) From the amount appropriated in subsection (1), an
amount not to exceed $4,000,000.00 is allocated for 2025-2026 to approved adult
education programs that connect adult education participants with employers as
provided under this subsection. The department shall determine regional
planning allocations under this subsection to each intermediate district
serving as a fiscal agent for adult education programs in each of the
prosperity regions or subregions identified by the department in the same proportion
as funding calculated and allocated under subsection (4). Funds not fully
utilized within a region may be transferred to other regions as appropriate. To
be eligible for funding under this subsection, a program must provide a
collaboration linking adult education programs within the county,
state-approved career and technical education programs, and local employers. To
receive funding under this subsection, an eligible program must satisfy all of
the following:

(a) Connect adult education participants directly with
employers by linking adult education, career and technical skills, and
workforce development.

(b) Require adult education staff to work with Michigan
Works! agency to identify a cohort of participants who are most prepared to
successfully enter the workforce. Except as otherwise provided under this
subdivision, participants identified under this subsection must be dually
enrolled in adult education programming and in at least 1 state-approved
technical course through a career and technical education program. A program
that links participants identified under this subsection with adult education programming
and commercial driver license courses does not need to enroll the participants
in at least 1 state-approved technical course through a career and technical
education program to be considered an eligible program under this subsection.

(c) Employ an individual staffed as an adult education
navigator who will serve as a caseworker for each participant identified under
subdivision (b). The navigator shall work with adult education staff and
potential employers to design an educational program best suited to the
personal and employment needs of the participant and shall work with human
service agencies or other entities to address any barrier in the way of
participant access.

(16) By not later than December 1 of each year, a program
funded under subsection (15) shall provide a report to the senate and house
appropriations subcommittees on school aid, to the senate and house fiscal
agencies, and to the state budget director identifying the number of
participants, graduation rates, and a measure of transition to employment.

(17) Except as otherwise provided in this subsection,
participants under subsection (15) must be concurrently enrolled and actively
working toward obtaining a high school diploma or a high school equivalency
certificate. Concurrent enrollment is not required under this subsection for a
participant that was enrolled in adult education during the same program year
and obtained a high school diploma or a high school equivalency certificate
before enrollment in an eligible career and technical skills program under
subsection (15). Up to 10% of adult education participants served under
subsection (15) may already have a high school diploma or a high school
equivalency certificate at the time of enrollment in an eligible career and
technical skills program under subsection (15) and receive remediation
services. It is intended that the cap described in the immediately preceding
sentence is continually lowered on an annual basis until it eventually is 0%.

(18) The department shall approve at least 2 high school
equivalency tests and determine whether a high school equivalency certificate
meets the requisite standards for high school equivalency in this state.

(19) As used in this section:

(a) “Career and educational advisory council” means an
advisory council to the local workforce development boards located in a
prosperity region consisting of educational, employer, labor, and parent
representatives.

(b) “Career pathway” means a combination of rigorous and
high-quality education, training, and other services that comply with all of
the following:

(i) Aligns with the skill needs of
industries in the economy of this state or in the regional economy involved.

(ii) Prepares an individual to be successful
in any of a full range of secondary or postsecondary education options,
including apprenticeships registered under the act of August 16, 1937, commonly
referred to as the national apprenticeship act, 29 USC 50 et seq.

(iii) Includes counseling to support an
individual in achieving the individual’s education and career goals.

(iv) Includes, as appropriate, education
offered concurrently with and in the same context as workforce preparation
activities and training for a specific occupation or occupational cluster.

(v) Organizes education, training, and other
services to meet the particular needs of an individual in a manner that accelerates
the educational and career advancement of the individual to the extent
practicable.

(vi) Enables an individual to attain a
secondary school diploma or its recognized equivalent, and at least 1 recognized
postsecondary credential.

(vii) Helps an individual enter or advance
within a specific occupation or occupational cluster.

(c) “Department” means the department of labor and economic
opportunity.

(d) “Eligible adult education provider” means a district,
intermediate district, a consortium of districts, a consortium of intermediate
districts, or a consortium of districts and intermediate districts that is
identified as part of the local process described in subsection (5)(c) and
approved by the department.

Sec.
111. A district having tuition pupils enrolled on the pupil membership count
day of each year may charge the district of residence an amount for tuition
that does not exceed the tuition rate computed under section 1401 of the
revised school code, MCL 380.1401. The rate charged by a district shall be
uniform within each category of tuition pupils enrolled in the district.
However, for a tuition pupil who resides in a K-5, K-6, or K-8 district and who
is enrolled in a grade not offered by the pupil’s district of residence, the
tuition rate charged to the pupil’s district of residence shall not exceed the
foundation allowance of the pupil’s district of residence or the foundation
allowance of the educating district, whichever is greater. A district receiving funds
under this act shall not charge tuition to the parent or legal guardian of a
pupil enrolled in the district as a nonresident pupil.

Sec.
147. (1) The allocation for 2025-2026 for the public school employees’
retirement system pursuant to the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1301 to 38.1437, is made using the individual
projected benefit entry age normal cost method of valuation and risk
assumptions adopted by the public school employees retirement board and the
department of technology, management, and budget.

(2) The annual level percentage of payroll contribution rates
for the 2025-2026 fiscal year, as determined by the retirement system, are
estimated as follows:

(a) For public school employees who first worked for a public
school reporting unit before July 1, 2010 and who are enrolled in the health
premium subsidy, the annual level percentage of payroll contribution rate is
estimated at 44.93% with 29.91% paid directly by the employer.

(b) For public school employees who first worked for a public
school reporting unit on or after July 1, 2010 and who are enrolled in the
health premium subsidy, the annual level percentage of payroll contribution
rate is estimated at 40.19% with 25.17% paid directly by the employer.

(c) For public school employees who first worked for a public
school reporting unit on or after July 1, 2010 and who participate in the
personal healthcare fund, the annual level percentage of payroll contribution
rate is estimated at 36.36% with 21.34% paid directly by the employer.

(d) For public school employees who first worked for a public
school reporting unit on or after September 4, 2012, who elect defined
contribution, and who participate in the personal healthcare fund, the annual
level percentage of payroll contribution rate is estimated at 30.23% with
15.21% paid directly by the employer.

(e) For public school employees who first worked for a public
school reporting unit before July 1, 2010, who elect defined contribution, and
who are enrolled in the health premium subsidy, the annual level percentage of
payroll contribution rate is estimated at 34.06% with 19.04% paid directly by
the employer.

(f) For public school employees who first worked for a public
school reporting unit before July 1, 2010, who elect defined contribution, and
who participate in the personal healthcare fund, the annual level percentage of
payroll contribution rate is estimated at 30.23% with 15.21% paid directly by
the employer.

(g) For public school employees who first worked for a public
school reporting unit before July 1, 2010 and who participate in the personal
healthcare fund, the annual level percentage of payroll contribution rate is
estimated at 41.10% with 26.08% paid directly by the employer.

(h) For public school employees who first worked for a public
school reporting unit after January 31, 2018 and who elect to become members of
the MPSERS plan, the annual level percentage of payroll contribution rate is
estimated at 36.43% with 21.41% paid directly by the employer.

(3) In addition to the employer payments described in
subsection (2), the employer shall pay the applicable contributions to the Tier
2 plan, as determined by the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1301 to 38.1437.

(4) The contribution rates in subsection (2) reflect an
amortization period of 13 years for 2024-2025. The public school employees’
retirement system board shall notify each district and intermediate district by
February 28 of each fiscal year of the estimated contribution rate for the next
fiscal year.

Sec.
147a. (1) From the state school aid fund money appropriated in section 11,
there is allocated for 2024-2025 an amount not to exceed $100,000,000.00
for payments to participating districts. A participating district that receives
money under this subsection shall use that money solely for the purpose of
offsetting a portion of the retirement contributions owed by the district for
the fiscal year in which it is received. The amount allocated to each
participating district under this subsection is based on each participating
district’s percentage of the total statewide payroll for all participating
districts for the immediately preceding fiscal year. As used in this
subsection, “participating district” means a district that is 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 reports employees to the Michigan public school employees’
retirement system for the applicable fiscal year.

(2) In addition to the allocation under subsection (1), from
the state school aid fund money appropriated under section 11, there is
allocated an amount not to exceed $414,900,000.00 for 2024-2025 and an amount
not to exceed $336,200,000.00 for 2025-2026 for payments to participating
districts and intermediate districts and from the general fund money
appropriated under section 11, there is allocated an amount not to exceed
$100,000.00 for 2024-2025 and 2025-2026 for payments to participating district
libraries. The amount allocated to each participating entity under this
subsection is based on each participating entity’s reported quarterly payroll
for members that became tier 1 before February 1, 2018 for the current fiscal
year. A participating entity that receives money under this subsection shall
use that money solely for the purpose of offsetting a portion of the normal
cost contribution rate. As used in this subsection:

(a) “District library” means a district library established
under the district library establishment act, 1989 PA 24, MCL 397.171
to 397.196.

(b) “Participating entity” means a district, intermediate
district, or district library that is 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 reports
employees to the Michigan public school employees’ retirement system for the
applicable fiscal year.

(3) In addition to the allocations under subsections (1) and
(2), from the state school aid fund money appropriated in section 11, there is
allocated for 2024-2025 only an amount not to exceed $11,939,000.00 for
payments to participating intermediate districts and participating district
libraries. A participating intermediate district or participating district
library shall use that money solely for the purpose of offsetting a portion of
the retirement contributions owed by the participating intermediate district or
participating district library for the fiscal year in which it is received. The
amount allocated to each participating intermediate district or participating
district library under this subsection is calculated as follows:

(a) For each participating intermediate district,
$11,912,000.00 multiplied by each participating intermediate district’s
percentage of the total statewide payroll for all participating intermediate
districts for the immediately preceding fiscal year.

(b) For each participating district library, $27,000.00
multiplied by each participating district library’s percentage of the total
statewide payroll for all participating district libraries for the immediately
preceding fiscal year.

(c) As used in this subsection:

(i) “Participating district library” means a
district library that is 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 reports employees
to the Michigan public school employees’ retirement system for the applicable
fiscal year.

(ii) “Participating intermediate district”
means an intermediate district that is 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
reports employees to the Michigan public school employees’ retirement system
for the applicable fiscal year.

(4) In addition to the allocations under subsections (1),
(2), and (3), from the state school aid fund money appropriated in section 11,
there is allocated for 2024-2025 an amount not to exceed $598,000,000.00 for
payments to participating entities. The amount allocated to each participating
entity under this subsection is based on each participating entity’s percentage
of the total statewide payroll for all participating entities for the
immediately preceding fiscal year. The amount allocated in this subsection
represents an amount to effectively reduce each participating entity’s unfunded
actuarial accrued liability from 20.96% to an estimated 15.21% of covered
payroll. It is the intent of the legislature that the allocation under this
subsection be used to support student mental health, school safety, the
educator workforce, and academic interventions.

(a) As used in this subsection:

(i) “District library” means a district
library established under the district library establishment act, 1989 PA 24,
MCL 397.171 to 397.196.

(ii) “Participating entity” means a district,
intermediate district, district library, or community college that is 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 reports employees to the Michigan public school employees’
retirement system for the applicable fiscal year.

Sec.
147c. (1) From the state school aid fund money appropriated in section 11,
there is allocated for 2025-2026 an amount not to exceed $1,536,500,000.00 for
payments to districts and intermediate districts that are participating
entities of the Michigan public school employees’ retirement system. In
addition, from the general fund money appropriated in section 11, there is
allocated for 2025-2026 an amount not to exceed $300,000.00 for payments to
district libraries that are participating entities of the Michigan public
school employees’ retirement system. All of the following apply to funding
under this subsection:

(a) Except as otherwise provided in this subdivision, for
2025-2026, the amounts allocated under this subsection are estimated to provide
an average MPSERS rate cap per pupil amount for districts of $1,100.00, which
represents an average increase of $362.00 per pupil compared to the immediately
preceding state fiscal year.

(b) Payments made under this subsection are equal to the
difference between the unfunded actuarial accrued liability contribution rate
as calculated under section 41 of the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the
maximum employer rate of 20.96% included in section 41 of the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum
employer rate of 20.96% included in section 41 of the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1341.

(c) The amount allocated to each participating entity under
this subsection is based on each participating entity’s proportion of the total
covered payroll for the immediately preceding fiscal year for the same type of
participating entities. A participating entity that receives funds under this
subsection shall use the funds solely for the purpose of retirement contributions
as specified in subdivision (d).

(d) Each participating entity receiving funds under this
subsection shall forward an amount equal to the amount allocated under subdivision
(c) to the retirement system in a form, manner, and time frame determined by
the retirement system.

(e) Funds allocated under this subsection should be
considered when comparing a district’s growth in total state aid funding from 1
fiscal year to the next.

(f) By not later than December 20 of each fiscal year for
which funding is allocated under this subsection, the department shall publish
and post on its website an estimated MPSERS rate cap per pupil for each
district.

(2) As used in this section:

(a)
“District library” means a district library
established under the district library establishment act, 1989 PA 24,
MCL 397.171 to 397.196.

(b) “MPSERS rate cap per pupil” means an amount equal to the
quotient of the district’s payment under this section divided by the district’s
pupils in membership.

(c) “Participating entity” means, except as otherwise
provided in this subdivision, a district, intermediate district, or district
library that is 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 reports employees to the Michigan
public school employees’ retirement system for the applicable fiscal year.

(d) “Retirement system” means 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.

Sec.
147e. (1) From the state school aid fund money appropriated in section 11,
there is allocated for 2024-2025 an amount not to exceed $71,600,000.00, and
there is allocated for 2025-2026 an amount not to exceed $118,400,000.00 for
payments to participating entities.

(2) The payment to each participating entity under this
section is the sum of the amounts under this subsection as follows:

(a) An amount equal to the contributions made by a
participating entity for the additional contribution made to a qualified
participant’s Tier 2 account in an amount equal to the contribution made by the
qualified participant not to exceed 3% of the qualified participant’s
compensation as provided for under section 131(6) of the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1431.

(b) Beginning October 1, 2017, an amount equal to the
contributions made by a participating entity for a qualified participant who is
only a Tier 2 qualified participant under section 81d of the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1381d, not to exceed 4%,
and, beginning February 1, 2018, not to exceed 1%, of the qualified participant’s
compensation.

(c) An amount equal to the increase in employer normal cost
contributions under section 41b(2) of the public school employees retirement
act of 1979, 1980 PA 300, MCL 38.1341b, for a member that was hired after
February 1, 2018 and chose to participate in Tier 1, compared to the
employer normal cost contribution for a member under section 41b(1) of the
public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341b.

(3) As used in this section:

(a) “Member” means that term as defined under the public
school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to
38.1437.

(b) “Participating entity” means a district, intermediate
district, or community college that is 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 reports
employees to the Michigan public school employees’ retirement system for the
applicable fiscal year.

(c) “Qualified participant” means that term as defined under
section 124 of the public school employees retirement act of 1979, 1980 PA 300,
MCL 38.1424.

Sec.
152a. (1) As required by the court in the consolidated cases known as Adair
v State of Michigan, 486 Mich 468 (2010), from the state school aid fund
money appropriated in section 11, there is allocated for 2025-2026 an amount
not to exceed $41,000,500.00 to be used solely for the purpose of paying
necessary costs related to the state-mandated collection, maintenance, and
reporting of data to this state. From this allocation, $3,000,000.00 is
allocated for costs associated with collecting data necessary to provide
reporting to tribal governments on the status of students affiliated with their
particular tribe and data necessary to determine student participation in
federal programs funded under 20 USC 7401 to 7546 and participation in federal
programs funded under the Johnson-O’Malley Supplemental Indian Education
Program Modernization Act, Public Law 115-404.

(2) From the allocation in subsection (1), the department
shall make payments to districts and intermediate districts in an equal amount
per pupil based on the total number of pupils in membership in each district
and intermediate district. The department shall not make any adjustment to
these payments after the final installment payment under section 17b is made.

Sec.
152b. (1) From the general fund money appropriated under section 11, there is
allocated an amount not to exceed $1,000,000.00 for 2025-2026 to reimburse
actual costs incurred by nonpublic schools in complying with a health, safety,
or welfare requirement mandated by a law or administrative rule of this state.

(2) By January 1 of each applicable fiscal year, the
department shall publish a form for reporting actual costs incurred by a
nonpublic school in complying with a health, safety, or welfare requirement
mandated under state law containing each health, safety, or welfare requirement
mandated by a law or administrative rule of this state applicable to a
nonpublic school and with a reference to each relevant provision of law or
administrative rule for the requirement. The form must be posted on the
department’s website in electronic form.

(3) By June 30 of each applicable fiscal year, a nonpublic
school seeking reimbursement for actual costs incurred in complying with a
health, safety, or welfare requirement under a law or administrative rule of
this state during each applicable school year must submit a completed form
described in subsection (2) to the department. This section does not require a
nonpublic school to submit a form described in subsection (2). A nonpublic
school is not eligible for reimbursement under this section if the nonpublic
school does not submit the form described in subsection (2) in a timely manner.

(4) By August 15 of each applicable fiscal year, the
department shall distribute funds to each nonpublic school that submits a
completed form described under subsection (2) in a timely manner. The
superintendent shall determine the amount of funds to be paid to each nonpublic
school in an amount that does not exceed the nonpublic school’s actual costs in
complying with a health, safety, or welfare requirement under a law or
administrative rule of this state. The superintendent shall calculate a
nonpublic school’s actual cost in accordance with this section.

(5) If the funds allocated under this section are
insufficient to fully fund payments as otherwise calculated under this section,
the department shall distribute funds under this section on a prorated or other
equitable basis as determined by the superintendent.

(6) The department may review the records of a nonpublic
school submitting a form described in subsection (2) only for the limited
purpose of verifying the nonpublic school’s compliance with this section. If a
nonpublic school does not allow the department to review records under this
subsection, the nonpublic school is not eligible for reimbursement under this
section.

(7) The funds appropriated under this section are for
purposes that are incidental to teaching and the provision of educational
services to nonpublic school students; that are noninstructional in nature;
that do not constitute a primary function or element necessary for a nonpublic
school’s existence, operation, and survival; that do not involve or result in
excessive religious entanglement; and that are intended for the public purpose
of ensuring the health, safety, and welfare of the children in nonpublic
schools and to reimburse nonpublic schools for costs described in this section.

(8) Funds allocated under this section are not intended to
aid or maintain any nonpublic school, support the attendance of any student at
a nonpublic school, employ any person at a nonpublic school, support the
attendance of any student at any location where instruction is offered to a
nonpublic school student, or support the employment of any person at any
location where instruction is offered to a nonpublic school student.

(9) For purposes of this section, “actual cost” means the
hourly wage for the employee or employees performing a task or tasks required
to comply with a health, safety, or welfare requirement under a law or
administrative rule of this state identified by the department under subsection
(2) and is to be calculated in accordance with the form published by the
department under subsection (2), which must include a detailed itemization of
costs. The nonpublic school shall not charge more than the hourly wage of its
lowest-paid employee capable of performing a specific task regardless of
whether that individual is available and regardless of who actually performs a
specific task. Labor costs under this subsection must be estimated and charged
in increments of 15 minutes or more, with all partial time increments rounded
down. When calculating costs under subsection (4), fee components must be
itemized in a manner that expresses both the hourly wage and the number of
hours charged. The nonpublic school may not charge any applicable labor charge
amount to cover or partially cover the cost of health or fringe benefits. A
nonpublic school shall not charge any overtime wages in the calculation of
labor costs.

(10) Training fees, inspection fees, and criminal background
check fees are considered actual costs in complying with a health, safety, or
welfare requirement under a law or administrative rule of this state.

(11) The funds allocated under this section for 2025-2026 are
a work project appropriation, and any unexpended funds for 2025-2026 are
carried forward into 2026-2027. The purpose of the work project is to continue
to reimburse nonpublic schools for actual costs incurred in complying with a
health, safety, or welfare requirement mandated by a law or administrative rule
of this state. The estimated completion date of the work project is September
30, 2027.

(12) The department shall reimburse nonpublic schools for
actual costs incurred in complying with health, safety, or welfare requirements
under a law or administrative rule of this state from 2017-2018 through
2022-2023 using work project funds or, if those funds are insufficient to fund
reimbursements under this subsection, from the allocation under subsection (1).

Sec. 161a. If a court determines that a
person intentionally violated section 411a of the Michigan penal code, 1931 PA
328, MCL 750.411a, by making a false report of the commission of a crime
described in section 6(6)(e) knowing the report to be false for the purpose of
having a pupil counted in membership in a district under section 6(6)(e), as
part of the restitution ordered under section 30 of chapter XIIA of 1939 PA
288, MCL 712A.30, section 16, 44, or 76 of the crime victim’s rights act,
1985 PA 87, MCL 780.766, 780.794, and 780.826, or section 1a of chapter IX
of the code of criminal procedure, 1927 PA 175, MCL 769.1a, the court may order
the person to pay the pupil’s district of residence an amount that is not more
than the state school aid that district would have received attributable to the
pupil if the pupil had been counted in membership in the pupil’s district of
residence.

Sec.
164k. If the department receives a report that a district or intermediate
district is violating any of the following requirements, and the department
confirms the violation, the department shall withhold 5% of the payment the
district is eligible to receive under section 22b, or 5% of the payment the
intermediate district is eligible to receive under section 81, as applicable,
for as long as the district or intermediate district is out of compliance:

(a) A district or intermediate district shall ensure that all
food made available to a student in the breakfast or lunch program complies
with all federal rules and regulations related to school meals.

(b) To the extent practicable under federal regulations, a
district or intermediate district shall require each student household to
complete the child nutrition and education benefits application, as provided by
the department, for free and reduced-price school meals regardless of whether
the district or intermediate district opts to provide universal breakfast or
lunch.

(c) For pupil membership count days after the fall 2025
count, a district or intermediate district shall not provide a financial
incentive to students for attending pupil membership count day.

(d)
A district or intermediate district shall ensure that student survey questions
and results are made available to the public, posted on the district’s or
intermediate district’s website, and that parents and legal guardians are
notified of the survey. As used in this subsection, “survey” includes any
survey from the district or intermediate district or from the local, state, or
federal government.

(e)
Beginning with the fiscal year ending September 30, 2026, if a district is not
using a curriculum from the department’s evidence-based curriculum list
required under section 1280f of the revised school code, MCL 380.1280f,
the district must provide a notification to all parents or legal guardians of
students in grades K to 5 receiving instruction with that curriculum that
includes all of the following:

(i) A statement
informing parents or legal guardians that the curriculum used by the district
is not evidence-based or not aligned to state standards, which could negatively
impact student academic outcomes.

(ii) A statement
explaining why the district is not using a curriculum that is evidence-based or
aligned to state standards.

(iii) A plan, including
a projected timeline, for when a new curriculum will be adopted that is
evidence-based and aligned to state standards.

Sec.
164l. (1) Not later than 30 days after the enactment of the
amendatory act that added this section, the legislature shall provide to the
responsible entity and the state budget director a list of legislatively
directed spending items, which may be referred to in this section as grants or
direct appropriation grants, funded under the amendatory act that added this
section consistent with house or senate rules and this section. The list must
include all information and documents pertaining to the funded items as
publicly disclosed in accordance with house or senate rules and this section.

(2) Notwithstanding any other conditions or requirements for
direct appropriation grants, the responsible entity shall perform, at a
minimum, at least all of the following activities to administer the grants
described in subsection (1):

(a) Establish a process to review, complete, and execute a
grant agreement with a grant recipient. The responsible entity shall not
execute a grant agreement unless all necessary documentation has been submitted
and reviewed.

(b) Verify to the extent possible that a grant recipient is a
not-for-profit entity and will use funds as publicly disclosed and for a public
purpose that serves the economic prosperity, health, safety, or general welfare
of the residents of this state.

(c) Review and verify all necessary information to ensure the
grant recipient is reasonably able to execute the grant agreement, perform its
fiduciary duty, and comply with all applicable state and federal statutes. The
responsible entity may deduct the cost of background checks and any other
efforts performed as part of this verification from the amount of the
designated grant award.

(d) Disburse the grant money per the grant disbursement
schedule in the executed grant agreement on a reimbursement basis after the
grantee has provided sufficient documentation, as determined by the responsible
entity, to verify that expenditures were made in accordance with the project
purpose.

(e) If the state budget director determines that information
provided by the grantee does not meet the disclosure requirements, that the
grant will be used to pay a tax lien, delinquent tax, or other obligation owed
to this state, or that the grant will create a conflict of interest, the
responsible entity shall not release the grant money to the grantee. Money that
is not released under this subdivision lapses at the end of the fiscal year.
There is not a conflict of interest if the sponsoring legislator certifies that
the sponsoring legislator’s immediate family members, legislative staff members
that have worked for the sponsoring legislator within the past 2 years, and the
sponsoring legislator do not have a direct or indirect pecuniary interest in
the legislatively directed spending item.

(3) An executed grant agreement under this section between
the responsible entity and a grant recipient must include at least all of the
following:

(a) All necessary identifying information for the grant
recipient, including any tax and financial information necessary for the
responsible entity to administer grant money under this section.

(b) A description of the project for which the grant money
will be expended, including tentative timelines and the estimated budget.
Project budget must include how all grant money will be used and must indicate
if any grant money will be provided to a third party or subrecipient. The
responsible entity shall not reimburse expenditures that are outside of the
project purpose, as stated in the executed grant agreement, from appropriations
under the amendatory act that added this section. The grantee shall return to
the state treasury any interest in excess of $1,000.00 earned on the grant
money while unexpended and in possession of the grantee.

(c) Unless otherwise specified in the responsible entity’s
policy, a requirement that funds appropriated for the grants described in
subsection (1) may be used only for expenditures that occur on or after the
effective date of the amendatory act that added this section.

(d) A requirement for reporting by the grant recipient to the
responsible entity and the legislative sponsor that provides the status of the
project and an accounting of all money expended by the grant recipient, as
determined by the responsible entity.

(e) A clawback provision that allows the department of
treasury to recoup or otherwise collect any grant money that is declined,
unspent, or otherwise misused.

(f) The documents publicly disclosed under subsection (1).

(4) If appropriate to improve the administration or oversight
of a grant described in subsection (1), the responsible entity may adopt a
memorandum of understanding with another state department to perform the
required duties under this section.

(5) A grant recipient shall respond to all reasonable
information requests from the responsible entity related to grant expenditures
and retain grant records for not less than 7 years, and the grant may be
subject to monitoring, site visits, and audit as determined by the responsible
entity. The grant agreement required under this section must include signed
assurance by the chief executive officer or other executive officer of the
grant recipient authorized to bind the grant recipient that the requirements of
this subsection will be met.

(6) The grant recipient shall expend all grant money awarded
and complete all projects not later than September 30, 2030. If, at that time,
any unexpended money remains, the grant recipient shall return that money to
the state treasury. If a grant recipient does not provide information
sufficient to execute a grant agreement not later than June 1, 2026, the
responsible entity shall return money associated with the grant to the state
treasury.

(7) Any grant money that is awarded to a responsible entity
is appropriated in that responsible entity for the purpose of the intended
grant.

(8) Except as otherwise provided in subsection (9), beginning
March 15 of the current fiscal year, the responsible entity shall post a report
in a publicly accessible location on its website. The report must list the
grant recipient, project purpose, and location of the project for each grant
described in subsection (1), the status of money allocated and disbursed under
the grant agreement, and the legislative sponsor, if applicable. The
responsible entity shall update the report and post the updated report in a
publicly accessible location on its website not later than June 15 of the
current fiscal year and again not later than September 15 of the current fiscal
year. The responsible entity shall include in the report the most comprehensive
information the responsible entity has available at the time of posting for
grants awarded.

(9) If the state budget office determines that it is more
efficient for the state budget office to compile all affected responsible
entities’ information and post a report of the compiled information rather than
the report required under subsection (8) being posted by individual responsible
entities, the state budget office may compile that information across all
affected responsible entities and other state departments and post the compiled
report and any updates on the same time schedule as identified in subsection
(8).

(10) If the responsible entity reasonably determines that the
money allocated for an executed grant agreement under this section was misused
or that use of the money was misrepresented by the grant recipient, the
responsible entity shall not award any additional funds under the executed
grant agreement and shall refer the grant for review following internal audit
protocols, which may include referral for criminal investigation.

(11) As used in this section, “responsible entity” means the
department, the department of lifelong education, advancement, and potential, a
district, an intermediate district, or other person that administers a grant
under this article.

Sec.
201. (1) Subject to the conditions set forth in this article, the amounts
listed in this section are appropriated for community colleges for the fiscal
year ending September 30, 2026, from the funds indicated in this section. The
following is a summary of the appropriations in this section and section 201f:

(a) The gross appropriation is $493,032,100.00. After
deducting total interdepartmental grants and intradepartmental transfers in the
amount of $0.00, the adjusted gross appropriation is $493,032,100.00.

(b) The sources of the adjusted gross appropriation described
in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,
$493,032,100.00.

(v) State general fund/general purpose
money, $0.00.

(2) Subject to subsection (3), the amount appropriated for
community college operations is $363,570,600.00, allocated as follows:

(a) The appropriation for Alpena Community College is
$6,416,800.00, $6,403,300.00 for operations, $0.00 for performance funding, and
$13,500.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Bay de Noc Community College is $6,390,000.00, $6,298,000.00 for operations,
$0.00 for performance funding, and $92,000.00 for costs incurred under the
North American Indian tuition waiver.

(c) The appropriation for Delta College is $16,934,200.00,
$16,882,400.00 for operations, $0.00 for performance funding, and $51,800.00
for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Glen Oaks Community College is
$2,987,000.00, $2,984,100.00 for operations, $0.00 for performance funding, and
$2,900.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Gogebic Community College is
$5,439,100.00, $5,399,000.00 for operations, $0.00 for performance funding, and
$40,100.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Grand Rapids Community College is
$21,337,300.00, $21,184,200.00 for operations, $0.00 for performance funding,
and $153,100.00 for costs incurred under the North American Indian tuition
waiver.

(g) The appropriation for Henry Ford College is
$25,305,200.00, $25,300,700.00 for operations, $0.00 for performance funding,
and $4,500.00 for costs incurred under the North American Indian tuition
waiver.

(h) The appropriation for Jackson College is $14,059,700.00,
$14,032,600.00 for operations, $0.00 for performance funding, and $27,100.00
for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Kalamazoo Valley Community College
is $14,751,300.00, $14,704,400.00 for operations, $0.00 for performance
funding, and $46,900.00 for costs incurred under the North American Indian
tuition waiver.

(j) The appropriation for Kellogg Community College is
$11,453,400.00, $11,426,700.00 for operations, $0.00 for performance funding,
and $26,700.00 for costs incurred under the North American Indian tuition
waiver.

(k) The appropriation for Kirtland Community College is
$3,881,400.00, $3,835,100.00 for operations, $0.00 for performance funding, and
$46,300.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for Lake Michigan
College is $6,427,600.00, $6,408,200.00 for operations, $0.00 for performance
funding, and $19,400.00 for costs incurred under the North American Indian
tuition waiver.

(m) The appropriation for Lansing Community College is
$36,216,500.00, $36,134,400.00 for operations, $0.00 for performance funding,
and $82,100.00 for costs incurred under the North American Indian tuition
waiver.

(n) The appropriation for Macomb Community College is
$38,251,500.00, $38,160,600.00 for operations, $0.00 for performance funding,
and $90,900.00 for costs incurred under the North American Indian tuition
waiver.

(o) The appropriation for Mid Michigan Community College is
$5,919,500.00, $5,837,000.00 for operations, $0.00 for performance funding, and
$82,500.00 for costs incurred under the North American Indian tuition waiver.

(p) The appropriation for Monroe County Community College is
$5,368,900.00, $5,368,500.00 for operations, $0.00 for performance funding, and
$400.00 for costs incurred under the North American Indian tuition waiver.

(q) The appropriation for Montcalm Community College is
$4,035,000.00, $4,033,300.00 for operations, $0.00 for performance funding, and
$1,700.00 for costs incurred under the North American Indian tuition waiver.

(r) The appropriation for C.S. Mott Community College is
$18,028,100.00, $18,017,800.00 for operations, $0.00 for performance funding,
and $10,300.00 for costs incurred under the North American Indian tuition
waiver.

(s) The appropriation for Muskegon Community College is
$10,403,400.00, $10,359,900.00 for operations, $0.00 for performance funding,
and $43,500.00 for costs incurred under the North American Indian tuition
waiver.

(t) The appropriation for North Central Michigan College is
$4,110,100.00, $3,947,700.00 for operations, $0.00 for performance funding, and
$162,400.00 for costs incurred under the North American Indian tuition waiver.

(u) The appropriation for Northwestern Michigan College is
$10,874,500.00, $10,619,800.00 for operations, $0.00 for performance funding,
and $254,700.00 for costs incurred under the North American Indian tuition
waiver.

(v) The appropriation for Oakland Community College is
$25,168,400.00, $25,130,000.00 for operations, $0.00 for performance funding,
and $38,400.00 for costs incurred under the North American Indian tuition
waiver.

(w) The appropriation for Schoolcraft College is
$14,997,300.00, $14,972,000.00 for operations, $0.00 for performance funding,
and $25,300.00 for costs incurred under the North American Indian tuition
waiver.

(x) The appropriation for Southwestern Michigan College is
$7,805,700.00, $7,786,600.00 for operations, $0.00 for performance funding, and
$19,100.00 for costs incurred under the North American Indian tuition waiver.

(y) The appropriation for St. Clair County Community College
is $8,355,300.00, $8,342,000.00 for operations, $0.00 for performance funding,
and $13,300.00 for costs incurred under the North American Indian tuition
waiver.

(z) The appropriation for Washtenaw Community College is
$16,276,300.00, $16,257,300.00 for operations, $0.00 for performance funding,
and $19,000.00 for costs incurred under the North American Indian tuition
waiver.

(aa) The appropriation for Wayne County Community College is
$19,462,800.00, $19,460,300.00 for operations, $0.00 for performance funding,
and $2,500.00 for costs incurred under the North American Indian tuition
waiver.

(bb) The appropriation for West Shore Community College is
$2,914,300.00, $2,896,700.00 for operations, $0.00 for performance funding, and
$17,600.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for community
college operations is $363,570,600.00 and is appropriated from the state school
aid fund.

(4) From the appropriations described in subsection (1), both
of the following apply:

(a) Subject to section 207a, the amount appropriated for
fiscal year 2025-2026 to offset certain fiscal year 2025-2026 retirement
contributions is $7,189,000.00, appropriated from the state school aid fund.

(b) For fiscal year 2025-2026, there is allocated an amount
not to exceed $19,600,000.00 for payments to participating community colleges,
appropriated from the state school aid fund. A community college that receives
money under this subdivision shall use that money solely for the purpose of
offsetting the normal cost contribution rate.

(5) From the appropriations described in subsection (1),
subject to section 207b, the amount appropriated for payments to community
colleges that are participating entities of the retirement system is
$89,500,000.00, appropriated from the state school aid fund.

(6) From the appropriations described in subsection (1),
subject to section 207c, the amount appropriated for renaissance zone tax
reimbursements is $2,200,000.00, appropriated from the state school aid fund.
Each community college receiving funds in this subsection shall accrue these
payments to its institutional fiscal year ending June 30, 2026.

Sec.
201f. For fiscal year 2025-2026 only, from the appropriations described in
section 201(1), $10,972,500.00 is appropriated from the state school aid fund
for a 1-time performance funding payment. Funds appropriated under this
section, subject to conditions described in sections 217b and 230, must be
distributed as follows:

(a) Alpena Community College, $271,100.00.

(b) Bay de Noc Community College, $178,200.00.

(c) Delta College, $493,300.00.

(d) Glen Oaks Community College, $91,200.00.

(e) Gogebic Community College, $139,500.00.

(f) Grand Rapids Community College, $685,500.00.

(g) Henry Ford College, $750,900.00.

(h) Jackson College, $364,800.00.

(i) Kalamazoo Valley Community College, $433,700.00.

(j) Kellogg Community College, $324,400.00.

(k) Kirtland Community College, $146,500.00.

(l) Lake Michigan College, $192,200.00.

(m) Lansing Community College, $924,700.00.

(n) Macomb Community College, $1,090,600.00.

(o) Mid Michigan Community College, $193,900.00.

(p) Monroe County Community College, $206,600.00.

(q) Montcalm Community College, $122,300.00.

(r) C.S. Mott Community College, $491,700.00.

(s) Muskegon Community College, $298,600.00.

(t) North Central Michigan College, $144,300.00.

(u) Northwestern Michigan College, $289,400.00.

(v) Oakland Community College, $816,500.00.

(w) Schoolcraft College, $503,200.00.

(x) Southwestern Michigan College, $210,400.00.

(y) St. Clair County Community College, $258,200.00.

(z) Washtenaw Community College, $664,900.00.

(aa) Wayne County Community College, $600,900.00.

(bb) West Shore Community College, $85,000.00.

Sec.
201i. (1) Not later than 30 days after the enactment of the amendatory act that
added this section, the legislature shall provide to the responsible entity and
the state budget director a list of legislatively directed spending items,
which may be referred to in this section as grants or direct appropriation
grants, funded under the amendatory act that added this section consistent with
house or senate rules and this section. The list must include all information
and documents pertaining to the funded items as publicly disclosed in
accordance with house or senate rules and this section.

(2) Notwithstanding any other conditions or requirements for
direct appropriation grants, the responsible entity shall perform, at a
minimum, at least all of the following activities to administer the grants
described in subsection (1):

(a) Establish a process to review, complete, and execute a
grant agreement with a grant recipient. The responsible entity shall not
execute a grant agreement unless all necessary documentation has been submitted
and reviewed.

(b) Verify to the extent possible that a grant recipient is a
not-for-profit entity and will use funds as publicly disclosed and for a public
purpose that serves the economic prosperity, health, safety, or general welfare
of the residents of this state.

(c) Review and verify all necessary information to ensure the
grant recipient is reasonably able to execute the grant agreement, perform its
fiduciary duty, and comply with all applicable state and federal statutes. The
responsible entity may deduct the cost of background checks and any other
efforts performed as part of this verification from the amount of the
designated grant award.

(d) Disburse the grant money per the grant disbursement
schedule in the executed grant agreement on a reimbursement basis after the
grantee has provided sufficient documentation, as determined by the responsible
entity, to verify that expenditures were made in accordance with the project
purpose.

(e) If the state budget director determines that information
provided by the grantee does not meet the disclosure requirements, that the
grant will be used to pay a tax lien, delinquent tax, or other obligation owed
to this state, or that the grant will create a conflict of interest, the
responsible entity shall not release the grant money to the grantee. Money that
is not released under this subdivision lapses at the end of the fiscal year.
There is not a conflict of interest if the sponsoring legislator certifies that
the sponsoring legislator’s immediate family members, legislative staff members
that have worked for the sponsoring legislator within the past 2 years, and the
sponsoring legislator do not have a direct or indirect pecuniary interest in
the legislatively directed spending item.

(3) An executed grant agreement under this section between
the responsible entity and a grant recipient must include at least all of the
following:

(a) All necessary identifying information for the grant
recipient, including any tax and financial information necessary for the
responsible entity to administer grant money under this section.

(b) A description of the project for which the grant money
will be expended, including tentative timelines and the estimated budget.
Project budget must include how all grant money will be used and must indicate
if any grant money will be provided to a third party or subrecipient. The
responsible entity shall not reimburse expenditures that are outside of the
project purpose, as stated in the executed grant agreement, from appropriations
under the amendatory act that added this section. The grantee shall return to
the state treasury any interest in excess of $1,000.00 earned on the grant
money while unexpended and in possession of the grantee.

(c) Unless otherwise specified in the responsible entity’s
policy, a requirement that funds appropriated for the grants described in
subsection (1) may be used only for expenditures that occur on or after the
effective date of the amendatory act that added this section.

(d) A requirement for reporting by the grant recipient to the
responsible entity and the legislative sponsor that provides the status of the
project and an accounting of all money expended by the grant recipient, as
determined by the responsible entity.

(e) A clawback provision that allows the department of
treasury to recoup or otherwise collect any grant money that is declined,
unspent, or otherwise misused.

(f) The documents publicly disclosed under subsection (1).

(4) If appropriate to improve the administration or oversight
of a grant described in subsection (1), the responsible entity may adopt a
memorandum of understanding with another state department to perform the
required duties under this section.

(5) A grant recipient shall respond to all reasonable
information requests from the responsible entity related to grant expenditures
and retain grant records for not less than 7 years, and the grant may be
subject to monitoring, site visits, and audit as determined by the responsible
entity. The grant agreement required under this section must include signed
assurance by the chief executive officer or other executive officer of the
grant recipient authorized to bind the grant recipient that the requirements of
this subsection will be met.

(6) The grant recipient shall expend all grant money awarded
and complete all projects not later than September 30, 2030. If at that time
any unexpended money remains, the grant recipient shall return that money to
the state treasury. If a grant recipient does not provide information
sufficient to execute a grant agreement not later than June 1, 2026, the
responsible entity shall return money associated with the grant to the state
treasury.

(7) Any grant money that is awarded to a responsible entity
is appropriated in that responsible entity for the purpose of the intended
grant.

(8) Except as otherwise provided in subsection (9), beginning
March 15 of the current fiscal year, the responsible entity shall post a report
in a publicly accessible location on its website. The report must list the
grant recipient, project purpose, and location of the project for each grant
described in subsection (1), the status of money allocated and disbursed under
the grant agreement, and the legislative sponsor, if applicable. The
responsible entity shall update the report and post the updated report in a
publicly accessible location on its website not later than June 15 of the
current fiscal year and again not later than September 15 of the current fiscal
year. The responsible entity shall include in the report the most comprehensive
information the responsible entity has available at the time of posting for
grants awarded.

(9) If the state budget office determines that it is more
efficient for the state budget office to compile all affected responsible
entities’ information and post a report of the compiled information rather than
the report required under subsection (8) being posted by individual responsible
entities, the state budget office may compile that information across all
affected responsible entities and other state departments and post the compiled
report and any updates on the same time schedule as identified in subsection
(8).

(10) If the responsible entity reasonably determines that the
money allocated for an executed grant agreement under this section was misused
or that use of the money was misrepresented by the grant recipient, the
responsible entity shall not award any additional funds under the executed
grant agreement and shall refer the grant for review following internal audit
protocols, which may include referral for criminal investigation.

(11) As used in this section, “responsible entity” means the
department of lifelong education, advancement, and potential, a community
college, or other person that administers a grant under this article.

Sec.
206. (1) Except for the funds appropriated in section 201(4)(b), the funds
appropriated in section 201 are appropriated for community colleges with fiscal
years ending June 30, 2026 and must be paid out of the state treasury and
distributed by the state treasurer to the respective community colleges in 11
monthly installments on the sixteenth of each month, or the next succeeding
business day, beginning with October 16, 2025. Each community college shall
accrue its July and August 2026 payments to its institutional fiscal year
ending June 30, 2026.

(2) The funds appropriated in section 201(4)(b) are
appropriated for community colleges with fiscal years ending June 30, 2026 and
must be distributed to the respective community colleges in quarterly
installments on the sixteenth of each November, February, May, and August. Each
community college shall accrue its August 2026 payments to its
institutional fiscal year ending June 30, 2026.

Sec.
207a. The following apply to the allocation of the appropriations described in
section 201(4):

(a) A community college that receives money under section
201(4) shall use that money solely for the purpose of offsetting a portion of
the retirement contributions owed by the college for that fiscal year.

(b) The amount allocated to each participating community
college under section 201(4)(a) must be based on each college’s percentage of
the total covered payroll for all community colleges that are participating
colleges in the immediately preceding fiscal year.

(c) The amount allocated to each participating community
college under section 201(4)(b) must be based on each college’s reported
quarterly payroll for members for the current fiscal year.

Sec.
207b. All of the following apply to the allocation of the appropriation
described in section 201(5) for payments to community colleges that are
participating entities of the retirement system:

(a) The amount of a payment under section 201(5) must be the
difference between the unfunded actuarial accrued liability contribution rate
as calculated under section 41 of the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the
maximum employer rate of 15.21% included in section 41 of the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum
employer rate of 15.21% under section 41 of the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1341.

(b) The amount allocated to each community college under
section 201(5) must be based on each community college’s percentage of the
total covered payroll for all community colleges that are participating
colleges in the immediately preceding fiscal year. A community college that
receives funds under this subdivision shall use the funds solely for the
purpose of retirement contributions under section 201(5).

(c) Each participating college that receives funds under
section 201(5) shall forward an amount equal to the amount allocated under
subdivision (b) to the retirement system in a form and manner determined by the
retirement system.

Sec.
207c. All of the following apply to the allocation of the appropriations
described in section 201(6) to community colleges described in section 12(3) of
the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692:

(a) The amount allocated to each community college under
section 201(6) for fiscal year 2025-2026 must be based on that community
college’s proportion of total revenue lost by community colleges as a result of
the exemption of property taxes levied in 2025 under the Michigan renaissance
zone act, 1996 PA 376, MCL 125.2681 to 125.2696.

(b) The appropriations described in section 201(6) must be
made to each eligible community college within 60 days after the
department of treasury certifies to the state budget director that it has
received all necessary information to properly determine the amounts payable to
each eligible community college under section 12 of the Michigan renaissance
zone act, 1996 PA 376, MCL 125.2692.

Sec.
210. (1) Recognizing the critical importance of education in strengthening
Michigan’s workforce, each community college shall explore ways of increasing
collaboration and cooperation with 4-year universities, particularly in the
areas related to training, instruction, and program articulation.

(2) Recognizing the central role of community colleges in
responding to local employment needs and challenges, community colleges shall
develop and continue efforts to collaborate with local employers and students
to identify local employment needs and strategies to meet them.

(3) Community colleges shall collaborate with each other on
innovations to identify and meet local employment needs.

(4) Community colleges shall work with universities to
develop equivalency standards of core college courses and identify equivalent
courses offered by postsecondary institutions.

Sec.
210b. By March 1 of each year, the Michigan Community College Association and
the Michigan Association of State Universities shall submit a report to the
senate and house appropriations subcommittees on community colleges, the senate
and house fiscal agencies, the department of lifelong education, advancement,
and potential, and the state budget director on the activities and programs
focused on improving transfer student outcomes since March 1 of the previous
year, including all of the following:

(a) The direct transferability of mathematics gateway courses
between and among community colleges and universities.

(b) The implementation of MiTransfer pathways.

(c) The progress on increasing participation in MiTransfer
pathways among community colleges and public universities.

(d) The implementation of the Michigan Transfer Network at
mitransfer.org.

(e) A progress report on the implementation of the Michigan
transfer agreement.

Sec.
210d. (1) Community colleges shall work with public universities in this state
to implement statewide reverse transfer agreements to increase the number of
students that are awarded credentials of value upon completion of the necessary
credits. These statewide agreements must enable students who have earned a
significant number of credits at a community college and transferred to a
baccalaureate-granting institution before completing a degree to transfer the
credits earned at the baccalaureate institution back to the community college
in order to be awarded a credential of value.

(2) Each community college receiving an appropriation under
section 201 shall consult with the department of lifelong education,
advancement, and potential at least once an academic year on the policies and
services the institution implements regarding transfer credits and transfer
students.

Sec.
212. Community college districts are encouraged to evaluate and pursue
efficiency and cost-containment measures that maximize state funding. Community
colleges shall identify practices that increase efficiencies, including, but
not limited to, establishing joint ventures, consolidating services, utilizing
program collaborations, maximizing educational benefits through optimal class
sizes and frequency of course offerings, eliminating low-enrollment and
high-cost instructional programs, using self-insurance, practicing energy
conservation, and utilizing group purchasing. Community colleges shall also
review proposed capital outlay projects to increase coordination and
utilization of new facilities, renovation projects, and technology
improvements.

Sec.
216e. (1) Payments under section 201 for performance funding must be made only
to a community college that certifies to the state budget director by the last
business day of August each year that it complies with the following:

(a) The institutional best practice described in subdivision
(c).

(b) One or more of the institutional best practices described
in subdivisions (d) to (g).

(c) The community college accepts the Michigan Transfer
Agreement, partners with the Michigan Transfer Network, and promotes clear
transfer pathways for interested students by doing all of the following:

(i) Has a policy to help transfer or accept
associate degrees from other accredited Michigan postsecondary education
institutions.

(ii) Publishes the policy described in
subparagraph (i) on the institution’s website in an
easily accessible way and in admissions materials.

(iii) Provides publicly available information
on the Michigan Transfer Network, applicable transfer pathways, and financial
aid available to transfer students, at no cost to the student.

(iv) Begins negotiations to increase the
number of reverse transfer agreements or articulation agreements and reports on
the progress toward completing the agreements to the state budget director by
the last business day in February.

(d) The community college requires all students to receive an
academic degree or certificate map that outlines required course sequencing,
program and institution requirements, declared minor program academic
requirements, and a recommended timeline within which courses should be taken
and in which specific semester or term in order to satisfy all program
requirements to allow the student to graduate on time.

(e) The community college provides non-credit-bearing
developmental or remedial courses at a reduced cost to students.

(f) The community college provides each degree- or
certificate-seeking student with a designated, trained academic advisor to
support student retention, persistence, and completion. The community college
shall require students to meet with their academic advisor at least once per
semester or term.

(g) The community college provides employees during business
hours to assist prospective and current students in completing the Free
Application for Federal Student Aid.

(2) The state budget director shall implement uniform
reporting requirements to ensure that a community college receiving a payment
under section 201 for performance funding has satisfied the institutional best
practices requirements of this section. The state budget director has the sole
authority to determine if a community college has met the requirements of this
section. Information reported by a community college to the state budget
director under this subsection must also be reported to the house and senate
appropriations subcommittees on higher education and the house and senate
fiscal agencies.

(3) If a community college fails to comply with the
certification requirements of this section, the state treasurer may withhold
the monthly installments under section 206 to the community college until the
certification is completed. If a community college does not comply with the
certification requirements described in this section by the end of the fiscal
year, the community college forfeits the amount withheld. Forfeited funds must
lapse to the state school aid fund. The state budget director shall notify the
chairs of the house and senate appropriations subcommittees on higher education
at least 10 days before withholding funds from any community college.

Sec.
217a. (1) Each community college that receives an appropriation in section 201
shall submit all of the following information in the form and manner specified
by the center:

(a) The Michigan community colleges verified data inventory
data for the preceding academic year to the center by the first business day of
November of each year as specified in section 217.

(b) Tuition and mandatory fees information as specified in
section 217b.

(c) The longitudinal data set to the center as specified in
section 219.

(d) The number and type of associate degrees, baccalaureate
degrees, and other certificates awarded as specified in section 219.

(e) The annual independent audit as specified in section 222.

(2) If the state budget director determines that a community
college failed to submit any of the information described in subsection (1) in
the form and manner specified by the center, the state treasurer may withhold
the monthly state operations installments described in section 201 from that
community college until those data are submitted. If a community college does
not submit any of the information described in subsection (1) by the end of the
fiscal year, the community college forfeits any withheld amount. The state
budget director shall notify the chairs of the house and senate appropriations
subcommittees on community colleges at least 10 days before withholding funds
from any community college.

(3) It is intended that accountability reporting for
community colleges will be streamlined through the center. The state budget
director and the center shall work to combine the reporting requirements
outlined in this subsection with the existing Michigan community colleges
verified data inventory collection cycle. All of the following must be reported
to the house and senate fiscal agencies and the state budget director:

(a) Each community college’s certification of its compliance
with the requirements described in subsections (4) and (5).

(b) The reporting and certification requirements of
subsections (6) and (7) and section 217b.

(4) No later than the last business day of November of each
year, each community college that receives an appropriation in section 201
shall make all of the information described in subdivisions (a) to (g)
available through a link on its website homepage, subject to subdivision (h),
as follows:

(a) The annual operating budget and subsequent budget
revisions.

(b) A link to the most recent “Michigan Community College
Data Inventory Report”.

(c) General fund revenue and expenditure projections for the
current fiscal year and the next fiscal year.

(d) A listing of all debt service obligations, detailed by
project, anticipated payment of each project, and total outstanding debt for
the current fiscal year.

(e) Links to all of the following for the community college:

(i) The current collective bargaining
agreement for each bargaining unit.

(ii) Each health care benefits plan,
including, but not limited to, medical, dental, vision, disability, long-term
care, or any other type of benefits that would constitute health care services,
offered to any bargaining unit or employee of the community college.

(iii) Audits and financial reports for the
most recent fiscal year for which they are available.

(iv) A copy of the board of trustees
resolution regarding compliance with best practices for the local strategic
value component described in section 230(2).

(f) A map that includes the boundaries of the community
college district.

(g) A prominent link to the financial aid website created
under section 260.

(h) For statewide consistency and public visibility,
community colleges shall use the icon badge provided by the department of
technology, management, and budget consistent with the icon badge developed by
the department of education for K-12 school districts. It must appear on the
front of each community college’s homepage. The size of the icon may be reduced
to 150 x 150 pixels.

(5) No later than the last business day of November of each
year, each community college that receives an appropriation in section 201
shall develop, maintain, and update a “campus safety information and resources”
link, prominently displayed on the homepage of its website, that links to a
section of the community college’s website containing, at a minimum, all of the
following information:

(a) Emergency contact numbers for police, fire, health, and
other services.

(b) Hours, locations, telephone numbers, and email contacts
for campus public safety offices and title IX offices.

(c) A list of safety and security services provided by the
community college, including transportation, escort services, building
surveillance, anonymous tip lines, and other available security services.

(d) The community college’s policies applicable to minors on
community college property.

(e) A directory of resources available at the community
college or in the surrounding community for students or employees who are
survivors of sexual assault or sexual abuse.

(f) An electronic copy of “A Resource Handbook for Campus
Sexual Assault Survivors, Friends and Family”, published in 2018.

(g) Campus security policies and crime statistics pursuant to
the student right-to-know and campus security act, Public Law 101-542, 104 Stat
2381. Information must include all material prepared pursuant to the public
information reporting requirements under the crime awareness and campus
security act of 1990, title II of the student right-to-know and campus security
act, Public Law 101-542, 104 Stat 2381.

(6) No later than the last business day of November of each
year, each community college that receives an appropriation in section 201
shall report to the house and senate appropriations subcommittees on community
colleges, the house and senate fiscal agencies, and the state budget director
its annual title IX report, also known as the student sexual misconduct report,
issued by the title IX coordinator, as required under the federal campus SaVE
act of 2013, Public Law 113-4, section 304, 127 Stat 54, 89-92 (2013).

(7) No later than the last business day of November of each
year, each community college that receives an appropriation in section 201
shall certify that the community college complies with federal regulations
under title IX, as required by the United States Department of Education,
including, but not limited to, the following:

(a) Use of medical experts that do not have an actual or
apparent conflict of interest.

(b) Issuance of title IX reports to complainants and
respondents that are not divergent.

(c) Notification of resources to each individual who reports
having experienced sexual assault by a member of the community college.

Sec.
217b. (1) Each community college that receives an appropriation in section 201
shall report to the center by the last business day of August of each year the
tuition and mandatory fees paid by a full-time in-district student and a
full-time out-of-district student as established by the community college
governing board for the current academic year. This report should also include
the annual cost of tuition and fees based on a full-time course load of 30
credits. This report must also specify the amount that tuition and fees have
increased for the community college from the prior academic year. Each
community college shall also report any revisions to the reported current
academic year tuition and mandatory fees adopted by the community college
governing board to the center within 15 days of being adopted. The center shall
provide this information and any revisions to the house and senate fiscal
agencies and the state budget director.

(2) Each community college that receives an appropriation in
section 201 shall certify to the state budget director by the first business
day of November of each year that its board will not adopt an increase in
tuition and fee rates for in-district students for the academic year that is
greater than the tuition restraint described in this subsection. For the
academic year 2025-2026, the tuition restraint level is equal to the greater of
4.5% or $227.00. For the academic year 2026-2027, the tuition restraint level
is equal to the greater of 4.0% or $199.00. It is intended that in the next
fiscal year, the tuition restraint rate will be adjusted only for the
subsequent academic year. As used in this subsection:

(a) “Fee” means any board-authorized fee that will be paid by
more than 1/2 of all in-district students at least once during their enrollment
at a community college. A community college increasing a fee that applies to a
specific subset of students or courses shall provide sufficient information to
prove that the increase applied to that subset will not cause the increase in
the average amount of board-authorized total tuition and fees paid by
in-district students in the academic year to exceed the limit established in
this section.

(b) “Tuition and fee rate” means the average of full-time
rates paid by a majority of students in each class, based on an unweighted
average of the rates authorized by the community college board and actually
charged to students, deducting any uniformly rebated or refunded amounts, for
the 2 semesters with the highest levels of full-time equated in-district
enrollment during the academic year.

(3) Community colleges that exceed the tuition and fee rate
cap described in subsection (2) are not eligible to receive payments under
section 201f for 1-time performance funding payments for fiscal year 2025-2026.
The state budget director shall implement uniform reporting requirements to
ensure that a community college receiving a payment under section 201f for
1-time performance funding has satisfied the tuition restraint requirements of
this section. The state budget director has the sole authority to determine if
a community college has met the requirements of this section. Information
reported by a community college to the state budget director under this
subsection must also be reported to the house and senate appropriations
subcommittees on community colleges and the house and senate fiscal agencies.

(4) Notwithstanding any other provision of this act, the
legislature may at any time adjust appropriations for a community college that
adopts an increase in tuition and fee rates for in-district students that
exceeds the rate cap established in subsection (2).

Sec.
217c. (1) Not later than December 1 of each year, each community college or
federally recognized tribal college that, in the current or previous academic
year, serves or has served as an authorizing body shall submit a report to the
house and senate appropriations subcommittees on higher education, the house
and senate fiscal agencies, the state budget director, and the department of
education containing, at a minimum, all of the following information, as
applicable:

(a) A list of all of the schools currently authorized, and
the following information for each school:

(i) The year in which the school was
authorized.

(ii) The location of each school.

(iii) The owner of the property at which each
school is located and the physical buildings utilized by the school, as
applicable.

(b) A list identifying any schools that were closed or lost
their authorization in the current or previous academic year.

(c) A description of any new contracts for the operation of a
public school academy that will operate as the successor to a public school
academy that is currently being operated under a contract issued by another
authorizing body that is currently performing in the bottom 5% of schools.

(d) The academic performance of each school currently
authorized, including whether a school is identified by the department of
education as a partnership school. If a school is identified as a partnership
school under this subdivision, the authorizing body shall include a description
of corrective actions in the school’s partnership agreement, the duration of
the partnership agreement, and an assessment of progress toward improvement.

(e) The total enrollment of each school at the time of
submission, the grades served, and student turnover rate compared to the
previous academic year, as applicable.

(f) Aggregated student enrollment data for students with an
individualized education program as well as the total amount of special
education cost reimbursements received by each school during the school’s most
recently completed fiscal year.

(g) The total number of fees, reimbursements, contributions,
or charges permitted under section 502(6) of the revised school code, 1976 PA
451, MCL 380.502, that are assigned to each school currently authorized in a
single academic year.

(h) The names of the members of the board of directors of
each school currently authorized, the date that each member of each board was
appointed, and a description of the methodology used by the authorizing body to
select members for the boards of directors for each school currently authorized
by the authorizing body.

(i) The name of the applicant who applied and received
approval to organize each currently authorized school.

(j) The list of contracts and length of their terms, with
education service providers associated with each school currently authorized
pursuant to section 502 of the revised school code, 1976 PA 451, MCL 380.502,
as applicable. The contracts described in this subdivision include, but are not
limited to, those described in section 502(2)(d) of the revised school code, 1
1976 PA 451, MCL 380.502.

(k) Activities undertaken by each authorizing body to ensure
that the board of directors of each school complies with the open meetings act,
1976 PA 267, MCL 15.261 to 15.275, the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246, and laws prohibiting conflicts of interest.

(l) A description of the activities
undertaken by the authorizing body to meet the functions of an authorizing body
under section 502 of the revised school code, 1976 PA 451, MCL 380.502, as
applicable.

(m) A financial report of the authorizing body’s use of fees,
reimbursements, contributions, or charges collected or retained under section
502(6) of the revised school code, 1976 PA 451, MCL 380.502. This report must
include all of the following, at a minimum:

(i) The total amount of fees collected or
retained under section 502(6) of the revised school code, 1976 PA 451, MCL
380.502, by the authorizing body for the authorizing body’s most recent fiscal
year.

(ii) The amount of funds reported under
subparagraph (i) that were spent on compensation for
faculty and staff employed primarily to meet the functions of an authorizing
body. For the purpose of this subparagraph, an employee is presumed to be
primarily employed to meet the functions of an authorizing body if that
employee spends more than 50% of the employee’s time on those activities.

(iii) The number of positions, organized by
job title, associated with expenditures reported under subparagraph (ii).

(iv) The amount of funds reported under
subparagraph (i) that were spent on contractual services
to meet the functions of an authorizing body.

(v) The amount of funds reported under
subparagraph (i) that were spent on other overhead costs
to meet the functions of an authorizing body.

(vi) The amount of funds reported under
subparagraph (i) that were transferred to another
operating unit within the community college or federally recognized tribal
college.

(vii) The amount of funds reported under
subparagraph (i) that were spent on activities other than
functioning as an authorizing body, including a list of those activities and
the amount associated with each activity.

(n) An executive summary section that provides relevant
summary data for reporting requirements under subdivisions (a) to (m).

(2) A report submitted under this section must be in a format
that meets accessibility standards for viewing on the internet under the
Americans with disabilities act of 1990, Public Law 101-336.

(3) A report submitted under this section must be published
and updated through a link on the homepage of the institution’s website.

(4) In addition to the reporting requirements under this
section, each authorizing body that receives an appropriation under section 201
shall adopt a facilities policy ensuring that any structures or other property
vacated by a public school academy that ceases operation not contribute to
blight in the surrounding neighborhood or community in which the school had
previously operated.

(5) As used in this section, “authorizing body” means that
term as defined in section 501 of the revised school code, 1976 PA 451, MCL
380.501.

Sec.
217f. It is the intent of the legislature that taxpayer funds appropriated
under this article are to be used to educate community college students and
continue maintenance of community college buildings and other assets. The goal
of the legislature is that taxpayer funds not be used excessively for
administration. Therefore, a community college that receives an appropriation
under this article shall not spend more than 10% of that appropriation on
administration. A sum of money spent in excess of the 10% cap described in this
section by a community college results in a forfeiture of an amount equal to
50% of that sum from funds appropriated to that community college, not to
exceed the total amount appropriated to that community college under this article.
The auditor general may investigate allegations of violations of this section.
Funds forfeited under this section must revert, to the extent permitted by law,
to the general fund or the state school aid fund. For the purpose of
calculations under this section, the amount spent by a community college on
administrative costs does not include costs associated with staff working in
the following roles: teachers, facilities, public safety, technology, research,
instruction, academic support, student services, auxiliary services, or public
service.

Sec.
222. Each community college shall have an annual audit of all income and
expenditures performed by an independent auditor and shall furnish the
independent auditor’s management letter and an annual audited accounting of all
general and current funds income and expenditures including audits of college
foundations to the center before November 15 of each year. The center shall
provide this information to members of the senate and house appropriations
subcommittees on community colleges, the senate and house fiscal agencies, the
auditor general, the department of labor and economic opportunity, the
department of lifelong education, advancement, and potential, and the state
budget director. If a community college fails to furnish the audit materials,
the monthly state operations installments must be withheld from that college
until the information is submitted. All reporting must conform to the
requirements set forth in the “2001 Manual for Uniform Financial Reporting,
Michigan Public Community Colleges”. A community college shall make the
information the community college is required to provide under this section
available to the public on its website.

Sec.
229a. Included in the fiscal year 2025-2026 appropriations for the department
of technology, management, and budget are appropriations totaling
$38,032,600.00 to provide funding for the state share of costs for previously
constructed capital projects for community colleges. Those appropriations for
state building authority rent represent additional state general fund support
for community colleges, and the following is an estimate of the amount of that
support to each community college:

(a) Alpena Community College, $855,000.00.

(b) Bay de Noc Community College, $515,000.00.

(c) Delta College, $2,881,100.00.

(d) Glen Oaks Community College, $380,000.00.

(e) Gogebic Community College, $56,000.00.

(f) Grand Rapids Community College, $2,346,000.00.

(g) Henry Ford College, $1,505,000.00.

(h) Jackson College, $2,044,000.00.

(i) Kalamazoo Valley Community College, $1,942,000.00.

(j) Kellogg Community College, $679,000.00.

(k) Kirtland Community College, $225,000.00.

(l) Lake Michigan College, $966,000.00.

(m) Lansing Community College, $757,000.00.

(n) Macomb Community College, $4,682,200.00.

(o) Mid Michigan Community College, $1,615,000.00.

(p) Monroe County Community College, $1,540,000.00.

(q) Montcalm Community College, $446,000.00.

(r) C.S. Mott Community College, $3,103,000.00.

(s) Muskegon Community College, $982,000.00.

(t) North Central Michigan College, $646,000.00.

(u) Northwestern Michigan College, $1,787,000.00.

(v) Oakland Community College, $0.00.

(w) Schoolcraft College, $2,232,000.00.

(x) Southwestern Michigan College, $822,500.00.

(y) St. Clair County Community College, $718,000.00.

(z) Washtenaw Community College, $1,676,000.00.

(aa) Wayne County Community College, $1,895,800.00.

(bb) West Shore Community College, $736,000.00.

Sec.
230. (1) Subject to subsection (4), money included in the appropriations for
community college operations under section 201 for performance funding and
allocated under section 201f for 1-time performance funding payments is
distributed based on the following formula:

(a) Allocated proportionate to fiscal year 2024-2025 base
appropriations, 30%.

(b) Based on a weighted student contact hour formula as
provided for in the 2016 recommendations of the performance indicators task
force, 30%.

(c) Based on the performance improvement as provided for in
the 2016 recommendations of the performance indicators task force and based on
data provided by the center, 10%.

(d) Based on the performance completion number as provided
for in the 2016 recommendations of the performance indicators task force, 10%.

(e) Based on the performance completion rate as provided for
in the 2016 recommendations of the performance indicators task force and based
on data provided by the center, 10%.

(f) Based on administrative costs, 5%.

(g) Based on the local strategic value component, as
developed in cooperation with the Michigan Community College Association and
described in subsection (2), 5%.

(2) Money included in the appropriations for community
college operations under section 201(2) for local strategic value is allocated
only to each community college that certifies to the state budget director,
through a board of trustees resolution on or before October 15, 2025, that the
college has met 4 out of 5 best practices listed in each category described in
subsection (3). The resolution must provide specifics as to how the community
college meets each best practice measure within each category. One-third of
funding available under the strategic value component is allocated to each
category described in subsection (3). Amounts distributed under local strategic
value must be on a proportionate basis to each college’s fiscal year 2024-2025
operations funding. Payments to community colleges that qualify for local
strategic value funding must be distributed with the November installment
payment described in section 206.

(3) For purposes of subsection (2), the following categories
of best practices reflect functional activities of community colleges that have
strategic value to the local communities and regional economies:

(a) For Category A, economic development and business or
industry partnerships, the following:

(i) The community college has active
partnerships with local employers including hospitals and health care
providers.

(ii) The community college provides
customized on-site training for area companies, employees, or both.

(iii) The community college supports
entrepreneurship through a small business assistance center or other training
or consulting activities targeted toward small businesses.

(iv) The community college supports
technological advancement through industry partnerships, incubation activities,
or operation of a Michigan technical education center or other advanced
technology center.

(v) The community college has active
partnerships with local or regional workforce and economic development
agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active
partnerships with regional high schools, intermediate school districts, and career-tech
centers to provide instruction through dual enrollment, concurrent enrollment,
direct credit, middle college, or academy programs.

(ii) The community college hosts, sponsors,
or participates in enrichment programs for area K-12 students, such as college
days, summer or after-school programming, or Science Olympiad.

(iii) The community college provides,
supports, or participates in programming to promote successful transitions to
college for traditional age students, including grant programs such as talent
search, upward bound, or other activities to promote college readiness in area
high schools and community centers.

(iv) The community college provides,
supports, or participates in programming to promote successful transitions to
college for new or reentering adult students, such as adult basic education, a
high school equivalency test preparation program and testing, or recruiting,
advising, or orientation activities specific to adults. As used in this
subparagraph, “high school equivalency test preparation program” means that
term as defined in section 4.

(v) The community college has active
partnerships with regional 4-year colleges and universities to promote
successful transfer, such as articulation, 2+2, or reverse transfer agreements
or operation of a university center.

(c) For Category C, community services, the following:

(i) The community college provides
continuing education programming for leisure, wellness, personal enrichment, or
professional development.

(ii) The community college operates or
sponsors opportunities for community members to engage in activities that
promote leisure, wellness, cultural or personal enrichment such as community
sports teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public
facilities to promote cultural, educational, or personal enrichment for
community members, such as libraries, computer labs, performing arts centers,
museums, art galleries, or television or radio stations.

(iv) The community college operates public
facilities to promote leisure or wellness activities for community members,
including gymnasiums, athletic fields, tennis courts, fitness centers, hiking
or biking trails, or natural areas.

(v) The community college promotes,
sponsors, or hosts community service activities for students, staff, or
community members.

(4) Payments for performance funding under section 201 and for
1-time performance funding payments under section 201f must be made to a
community college only if that community college actively participates in the
Michigan Transfer Network sponsored by the Michigan Association of Collegiate
Registrars and Admissions Officers and submits timely updates, including
updated course equivalencies at least every 6 months, to the Michigan Transfer
Network. The state budget director shall determine if a community college has
not satisfied this requirement. The state budget director may withhold payments
for performance funding under section 201 and 1-time performance funding under
section 201f until a community college is in compliance with this subsection.

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, 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. After
deducting total interdepartmental grants and intradepartmental transfers in the
amount of $0.00, the adjusted gross appropriation is $2,336,912,000.00.

(b) The sources of the adjusted gross appropriation described
in subdivision (a) are as follows:

(i) Total federal revenues, $3,200,000.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,
$850,768,300.00.

(v) State general fund/general purpose
money, $1,482,943,700.00.

(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.
236c. In addition to the funds appropriated for fiscal year 2025-2026 in
section 236, appropriations to the department of technology, management, and
budget in the act providing general appropriations for fiscal year 2025-2026
for state building authority rent, totaling an estimated $142,153,900.00,
provide funding for the state share of costs for previously constructed capital
projects for state universities. These appropriations for state building
authority rent represent additional state general fund support provided to
public universities, and the following is an estimate of the amount of that
support to each public university:

(a) Central Michigan University, $12,914,000.00.

(b) Eastern Michigan University, $6,022,000.00.

(c) Ferris State University, $9,546,000.00.

(d) Grand Valley State University, $8,614,000.00.

(e) Lake Superior State University, $2,229,000.00.

(f) Michigan State University, $16,598,000.00.

(g) Michigan Technological University, $5,521,000.00.

(h) Northern Michigan University, $9,735,900.00.

(i) Oakland University, $11,245,000.00.

(j) Saginaw Valley State University, $7,820,000.00.

(k) University of Michigan - Ann Arbor, $14,068,000.00.

(l) University of Michigan - Dearborn,
$10,725,000.00.

(m) University of Michigan - Flint, $6,057,000.00.

(n) Wayne State University, $10,072,000.00.

(o) Western Michigan University, $10,987,000.00.

Sec.
236d. (1) In addition to the funds appropriated under section 232(2) for
university operations, for fiscal year 2025-2026 only, there is appropriated an
amount not to exceed $50,114,100.00 from the state general fund/general purpose
money for 1-time operations increase payments. These funds are intended to be
used for the same purposes as the funds appropriated under section 236(2) for
university operations.

(2) From the amount appropriated under subsection (1), each
university is allocated the following:

(a) Central Michigan University, $2,885,000.00.

(b) Eastern Michigan University, $2,544,200.00.

(c) Ferris State University, $1,812,200.00.

(d) Grand Valley State University, $2,955,400.00.

(e) Lake Superior State University, $438,300.00.

(f) Michigan State University, $9,740,500.00.

(g) Michigan Technological University, $1,650,000.00.

(h) Northern Michigan University, $1,601,100.00.

(i) Oakland University, $2,212,700.00.

(j) Saginaw Valley State University, $1,036,000.00.

(k) University of Michigan – Ann Arbor, $10,924,800.00.

(l) University of Michigan – Dearborn,
$954,700.00.

(m) University of Michigan – Flint, $799,900.00.

(n) Wayne State University, $6,886,500.00.

(o) Western Michigan University, $3,672,800.00.

(3) In addition to the funds appropriated in section 236(2)
for MSU AgBioResearch, for fiscal year 2025-2026 only, there is appropriated an
amount not to exceed $1,184,400.00 from the state general fund/general purpose
money for MSU AgBioResearch.

(4) In addition to the funds appropriated in section 236(2)
for MSU Extension, for fiscal year 2025-2026 only, there is appropriated an
amount not to exceed $1,021,700.00 from the state general fund/general purpose
money for MSU Extension.

Sec.
236e. (1) For fiscal year 2025-2026 only, from the general fund/general purpose
money appropriated in section 236(1), $50,000,000.00 is allocated for the
purpose of sunsetting the state competitive scholarship and state tuition grant
programs. The allocation in this section must be distributed in the same manner
as funds are distributed for state competitive scholarships under section 251
and state tuition grants under section 252.

(2) The funds allocated under this section for fiscal year
2025-2026 are a work project appropriation, and any unexpended funds remaining
at the end of fiscal year 2025-2026 are carried forward into fiscal year
2026-2027, and any unexpended funds remaining at the end of fiscal year
2026-2027 are carried forward into fiscal year 2027-2028, and any unexpended
funds remaining at the end of fiscal year 2027-2028 are carried forward into
fiscal year 2028-2029. The purpose of the work project is to support remaining
students in the state competitive scholarship program and the state tuition
grant program in this state. The estimated completion date of the work project
is September 30, 2029.

Sec.
236j. (1) The postsecondary scholarship fund is created in the department of
treasury for the purpose of providing scholarship awards to eligible students
who attend eligible postsecondary educational institutions in this state, as
provided in subsection (5).

(2) The state treasurer may receive money or other assets
from any source for deposit into the postsecondary scholarship fund. The state
treasurer shall direct the investment of the postsecondary scholarship fund.
The state treasurer shall credit to the postsecondary scholarship fund interest
and earnings from postsecondary scholarship fund investments.

(3) Money in the postsecondary scholarship fund at the close
of the fiscal year must remain in the postsecondary scholarship fund and not
lapse to the general fund.

(4) The department of treasury is the administrator of the
postsecondary scholarship fund for auditing purposes.

(5) Money must be expended from the postsecondary scholarship
fund only for the purpose of providing Michigan achievement scholarship awards
to eligible students who attend eligible postsecondary educational institutions
in this state and for other purposes described in this section. From the funds
appropriated in section 236(7) for the Michigan achievement scholarship,
the department of lifelong education, advancement, and potential may use up to
$10,000,000.00 annually for the purposes of outreach programs to raise
awareness of the Michigan achievement scholarship and other state scholarship
programs allocated in section 236(7). The department of lifelong education,
advancement, and potential shall ensure that state scholarships are well
publicized and that high school students are provided information on the
availability of financial aid. The department of lifelong education,
advancement, and potential may receive and expend funds received from outside
sources for scholarships, marketing, or other purposes related to Michigan
state scholarships. The department of lifelong education, advancement, and
potential shall provide the necessary funding and staff to fully operate the
programs.

(6) For the fiscal year ending September 30, 2026, $300,000,000.00
of ongoing funding is deposited into the postsecondary scholarship fund from
the following:

(a) State school aid fund, $200,000,000.00.

(b) State general fund/general purpose money,
$100,000,000.00.

(7) It is the intent of the legislature that the
postsecondary scholarship fund serves as the primary funding source of the
Michigan achievement scholarship. To ensure the Michigan achievement
scholarship provides ongoing supports for students, it is the intent of the
legislature to increase annual deposits into the postsecondary scholarship fund
until the fully implemented costs of the Michigan achievement scholarship are
deposited annually into the postsecondary scholarship fund.

(8) In addition to the appropriations in section 236, if the
amount of general fund money allocated in section 236(7)(a), (b), (d), or
(e) is not sufficient to fully fund 1 or more of those awards, there is
appropriated from the postsecondary scholarship fund the amount necessary to
fully fund those awards. The state budget director shall provide written
notification to the house and senate appropriations subcommittee on higher
education and the house and senate fiscal agencies prior to any additional
appropriation described in this subsection.

(9) In addition to the deposit to the postsecondary
scholarship fund described in subsection (6), for the fiscal year ending
September 30, 2025 only, an amount not to exceed $80,000,000.00 from the
unspent and unreserved state school aid fund balances appropriated under
section 11, as recorded as part of the state book-closing process for the
2024-2025 fiscal year, is deposited into the postsecondary scholarship fund.

Sec.
236s. (1) Not later than 30 days after the enactment of the amendatory act that
added this section, the legislature shall provide to the responsible entity and
the state budget director a list of legislatively directed spending items,
which may be referred to in this section as grants or direct appropriation
grants, funded under the amendatory act that added this section consistent with
house or senate rules and this section. The list must include all information
and documents pertaining to the funded items as publicly disclosed in
accordance with house or senate rules and this section.

(2) Notwithstanding any other conditions or requirements for
direct appropriation grants, the responsible entity shall perform, at a
minimum, at least all of the following activities to administer the grants
described in subsection (1):

(a) Establish a process to review, complete, and execute a
grant agreement with a grant recipient. The responsible entity shall not
execute a grant agreement unless all necessary documentation has been submitted
and reviewed.

(b) Verify to the extent possible that a grant recipient is a
not-for-profit entity and will use funds as publicly disclosed and for a public
purpose that serves the economic prosperity, health, safety, or general welfare
of the residents of this state.

(c) Review and verify all necessary information to ensure the
grant recipient is reasonably able to execute the grant agreement, perform its
fiduciary duty, and comply with all applicable state and federal statutes. The
responsible entity may deduct the cost of background checks and any other
efforts performed as part of this verification from the amount of the
designated grant award.

(d) Disburse the grant money per the grant disbursement
schedule in the executed grant agreement on a reimbursement basis after the
grantee has provided sufficient documentation, as determined by the responsible
entity, to verify that expenditures were made in accordance with the project
purpose.

(e) If the state budget director determines that information
provided by the grantee does not meet the disclosure requirements, that the
grant will be used to pay a tax lien, delinquent tax, or other obligation owed
to this state, or that the grant will create a conflict of interest, the
responsible entity shall not release the grant money to the grantee. Money that
is not released under this subdivision lapses at the end of the fiscal year.
There is not a conflict of interest if the sponsoring legislator certifies that
the sponsoring legislator’s immediate family members, legislative staff members
that have worked for the sponsoring legislator within the past 2 years, and the
sponsoring legislator do not have a direct or indirect pecuniary interest in
the legislatively directed spending item.

(3) An executed grant agreement under this section between
the responsible entity and a grant recipient must include at least all of the
following:

(a) All necessary identifying information for the grant
recipient, including any tax and financial information necessary for the
responsible entity to administer grant money under this section.

(b) A description of the project for which the grant money
will be expended, including tentative timelines and the estimated budget.
Project budget must include how all grant money will be used and must indicate
if any grant money will be provided to a third party or subrecipient. The
responsible entity shall not reimburse expenditures that are outside of the
project purpose, as stated in the executed grant agreement, from appropriations
under the amendatory act that added this section. The grantee shall return to
the state treasury any interest in excess of $1,000.00 earned on the grant
money while unexpended and in possession of the grantee.

(c) Unless otherwise specified in the responsible entity’s
policy, a requirement that funds appropriated for the grants described in
subsection (1) may be used only for expenditures that occur on or after the
effective date of the amendatory act that added this section.

(d) A requirement for reporting by the grant recipient to the
responsible entity and the legislative sponsor that provides the status of the
project and an accounting of all money expended by the grant recipient, as
determined by the responsible entity.

(e) A clawback provision that allows the department of
treasury to recoup or otherwise collect any grant money that is declined,
unspent, or otherwise misused.

(f) The documents publicly disclosed under subsection (1).

(4) If appropriate to improve the administration or oversight
of a grant described in subsection (1), the responsible entity may adopt a
memorandum of understanding with another state department to perform the
required duties under this section.

(5) A grant recipient shall respond to all reasonable
information requests from the responsible entity related to grant expenditures
and retain grant records for not less than 7 years, and the grant may be
subject to monitoring, site visits, and audit as determined by the responsible
entity. The grant agreement required under this section must include signed
assurance by the chief executive officer or other executive officer of the
grant recipient authorized to bind the grant recipient that the requirements of
this subsection will be met.

(6) The grant recipient shall expend all grant money awarded
and complete all projects not later than September 30, 2030. If at that time
any unexpended money remains, the grant recipient shall return that money to
the state treasury. If a grant recipient does not provide information
sufficient to execute a grant agreement not later than June 1, 2026, the
responsible entity shall return money associated with the grant to the state
treasury.

(7) Any grant money that is awarded to a responsible entity
is appropriated in that responsible entity for the purpose of the intended
grant.

(8) Except as otherwise provided in subsection (9), beginning
March 15 of the current fiscal year, the responsible entity shall post a report
in a publicly accessible location on its website. The report must list the
grant recipient, project purpose, and location of the project for each grant
described in subsection (1), the status of money allocated and disbursed under
the grant agreement, and the legislative sponsor, if applicable. The
responsible entity shall update the report and post the updated report in a
publicly accessible location on its website not later than June 15 of the
current fiscal year and again not later than September 15 of the current fiscal
year. The responsible entity shall include in the report the most comprehensive
information the responsible entity has available at the time of posting for
grants awarded.

(9) If the state budget office determines that it is more
efficient for the state budget office to compile all affected responsible
entities’ information and post a report of the compiled information rather than
the report required under subsection (8) being posted by individual responsible
entities, the state budget office may compile that information across all
affected responsible entities and other state departments and post the compiled
report and any updates on the same time schedule as identified in subsection
(8).

(10) If the responsible entity reasonably determines that the
money allocated for an executed grant agreement under this section was misused
or that use of the money was misrepresented by the grant recipient, the
responsible entity shall not award any additional funds under the executed
grant agreement and shall refer the grant for review following internal audit
protocols, which may include referral for criminal investigation.

(11) As used in this section, “responsible entity” means the
department of lifelong education, advancement, and potential, a public
university, or other person that administers a grant under this article.

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. Except
for Wayne State University, each institution shall accrue its July and August
2026 payments to its institutional fiscal year ending June 30, 2026.

Sec.
241a. (1) All public universities shall submit higher education institutional
data inventory (HEIDI) data and associated financial aid program information
requested by and in a manner prescribed by the state budget director. For
public universities with fiscal years ending June 30, these data must be
submitted to the state budget director by October 15 of each fiscal year.
Public universities with a fiscal year ending September 30 shall submit
preliminary HEIDI data by November 15 and final data by December 15.

(2) It is intended that accountability reporting for public
universities will be streamlined through HEIDI. The state budget director and
the center will work to combine the reporting requirements outlined in this
subsection with the existing HEIDI collection cycle. All of the following must
be reported to the house and senate fiscal agencies and the state budget
director:

(a) Each public university’s certification of its compliance
with the requirements described in subsections (4) and (5).

(b) The reporting requirements described in sections 241b and
241c.

(3) If a public university fails to submit HEIDI data and
associated financial aid program information in accordance with the required
reporting schedule, the state treasurer may withhold the monthly operations
installments under section 236 to the public university until those data are
submitted. If a public university does not comply with all of the requirements
described in subsections (4) and (5) by the end of the fiscal year, the public
university forfeits the amount withheld. The state budget director shall notify
the chairs of the house and senate appropriations subcommittees on higher
education at least 10 days before withholding funds from any public university.

(4) No later than November 1 each year, a public university
shall maintain a public transparency website available through a link on its
website homepage. The website must include all of the following concerning the
public university:

(a) The annual operating budget and subsequent budget
revisions.

(b) A summary of current expenditures for the most recent
fiscal year for which they are available, expressed as pie charts in the
following 2 categories:

(i) A chart of personnel expenditures,
broken into the following subcategories:

(A) Earnings and wages.

(B) Employee benefit costs, including, but not limited to,
medical, dental, vision, life, disability, and long-term care benefits.

(C) Retirement benefit costs.

(D) All other personnel costs.

(ii) A chart of all current expenditures the
public university reported as part of its higher education institutional data inventory
data under subsection (1), broken into the same subcategories in which it
reported those data.

(c) Links to all of the following for the public university:

(i) The current collective bargaining
agreement for each bargaining unit.

(ii) Each health care benefits plan,
including, but not limited to, medical, dental, vision, disability, long-term
care, or any other type of benefits that would constitute health care services,
offered to any bargaining unit or employee of the public university.

(iii) Audits and financial reports for the
most recent fiscal year for which they are available.

(d) General fund revenue and expenditure projections for the
current fiscal year and the next fiscal year.

(e) A listing of all debt service obligations, detailed by
project, anticipated fiscal year payment for each project, and total
outstanding debt for the current fiscal year.

(f) The institution’s policy regarding the transferability of
core college courses between community colleges and the public university.

(g) A listing of all community colleges that have entered
into reverse transfer agreements with the public university.

(h) A dashboard or report card demonstrating the public
university’s performance in several “best practice” measures. The dashboard or
report card must include at least all of the following for the 3 most recent
academic years for which the data are available:

(i) Enrollment.

(ii) Student retention rate.

(iii) Six-year graduation rates.

(iv) Number of Pell grant recipients and
graduating Pell grant recipients.

(v) Geographic origination of students,
categorized as in-state, out-of-state, and international.

(vi) Faculty to student ratios and total
public university employee to student ratios.

(vii) Teaching load by faculty classification.

(viii) Graduation outcome rates, including
employment and continuing education.

(i) An icon badge that provides statewide consistency and
public visibility. For this purpose, public universities shall use the icon
badge provided by the department of technology, management, and budget
consistent with the icon badge developed by the department of education for
K-12 school districts. It must appear on the front of each public university’s
homepage. The size of the icon may be reduced to 150 x 150 pixels. The font
size and style for this reporting must be consistent with other documents on
each public university’s website.

(j) A collection and report of the number and percentage of
all enrolled students who complete the Free Application for Federal Student
Aid, broken out by undergraduate and graduate/professional classifications,
reported to the center and posted on its website under the budget transparency
icon badge.

(k) The name of the current president, the names of the city
and state where the president currently resides, and the president’s annual
salary.

(5) No later than November 1 each year, a public university
shall develop, maintain, and update a “campus safety information and resources”
link, prominently displayed on the homepage of its website, to a section of its
website containing, at a minimum, all of the following information:

(a) Emergency contact numbers for police, fire, health, and
other services.

(b) Hours, locations, telephone numbers, and email contacts
for campus public safety offices and title IX offices.

(c) A list of safety and security services provided by the
public university, including transportation, escort services, building
surveillance, anonymous tip lines, and other available security services.

(d) The public university’s policies applicable to minors on
university property.

(e) A directory of resources available at the public
university or surrounding community for students or employees who are survivors
of sexual assault or sexual abuse.

(f) An electronic copy of “A Resource Handbook for Campus
Sexual Assault Survivors, Friends and Family”, published in 2018.

(g) Campus security policies and crime statistics pursuant to
the student right-to-know and campus security act, Public Law 101-542, 104 Stat
2381. Information must include all material prepared pursuant to the public
information reporting requirements under the crime awareness and campus
security act of 1990, title II of the student right-to-know and campus security
act, Public Law 101-542, 104 Stat 2381.

Sec.
241b. (1) No later than November 1 each year, each public university that
receives an appropriation in section 236 shall report its annual security
report, also known as the Clery Act Report, as required under 20 USC 1092(f).
Each public university shall include a title IX summary report that includes
all of the following information:

(a) The amounts and descriptions of all fees incurred in
title IX-related civil and criminal litigation.

(b) The number of title IX complaints.

(c) The average length of time for investigation and
resolution of title IX complaints.

(d) The aggregate number of title IX cases, investigations,
and complaints for each of the categories described in subparagraphs (i) to (v), subject to subparagraph (vi), as follows:

(i) Cases investigated for less than 15
days.

(ii) Cases investigated for at least 15 days
and less than 30 days.

(iii) Cases investigated for at least 30 days
and less than 60 days.

(iv) Cases investigated for at least 60 days
and less than 90 days.

(v) Cases investigated for 90 days or more.

(vi) If, for any category of cases under
subparagraphs (i) to (v),
there is an aggregate of fewer than 5 cases investigated, the public university
shall not report the aggregate number of cases and instead shall report that
fewer than 5 cases were investigated.

(e) The number of title IX appeals and the resolutions of
those appeals.

(f) The number of title IX-related complaints filed by the
public university with law enforcement agencies.

(2) No later than November 1 each year, each public
university that receives an appropriation in section 236 shall certify all of
the following:

(a) The public university complies with federal regulations
under title IX, as required by the United States Department of Education,
including, but not limited to, the following:

(i) Use of medical experts that do not have
an actual or apparent conflict of interest.

(ii) Issuance of title IX reports to
complainants and respondents that are not divergent.

(iii) Notification of resources to each
individual who reports having experienced sexual assault by a public university
member.

(iv) Consistent annual training for title IX
staff and law enforcement.

(b) The public university provides both of the following:

(i) An in-person sexual misconduct
prevention presentation or course for all freshman and incoming transfer
students, which must include contact information for the title IX office of the
public university. For a student who does not have any in-person credit hours
on campus, the university may provide the presentation or course
electronically.

(ii) An online or electronic sexual
misconduct prevention presentation or course for all students not considered
freshmen or incoming transfer students.

(c) The public university had a third party review its title
IX compliance office and related policies and procedures by the end of the
2018-2019 academic year. A copy of the third-party review must be transmitted
to the state budget director, the house and senate appropriations subcommittees
on higher education, and the house and senate fiscal agencies. Each public
university shall have a third-party review once every 4 years and a copy of the
third-party review must be transmitted to the state budget director, the house
and senate appropriations subcommittees on higher education, and the house and
senate fiscal agencies.

(d) The public university requires that the governing board
and the president or chancellor of the public university receive quarterly
reports from their title IX coordinator or title IX office. The report must
contain aggregated data of the number of sexual misconduct reports that the
office received for the academic year, the types of reports received, including
reports received against employees, and a summary of the general outcomes of
the reports and investigations. A member of the governing board may request to
review a title IX investigation report involving a complaint against an
employee, and the public university shall provide the report in a manner it
considers appropriate. The public university shall protect the complainant’s
anonymity, and the report must not contain specific identifying information.

(e) If allegations against an employee are made in more than
1 title IX complaint that resulted in the public university finding that no
misconduct occurred, the public university requires that the title IX officer
promptly notify the president or chancellor and a member of the public
university’s governing board in writing and take all appropriate steps to
ensure that the matter is being investigated thoroughly, including hiring an
outside investigator for future cases involving that employee. A third-party
title IX investigation under this subdivision does not prohibit the public
university from simultaneously conducting its own title IX investigation
through its own title IX coordinator.

(f) The public university’s president or chancellor and a
member of its governing board has reviewed all title IX reports involving
the alleged sexual misconduct of an employee of the public university.

(3) As used in this section, “sexual misconduct” includes,
but is not limited to, intimate partner violence, nonconsensual sexual conduct,
sexual assault, sexual exploitation, sexual harassment, and stalking.

Sec.
241c. (1) No later than the first business day of November each year, each
public university that receives an appropriation in section 236 shall submit
the amount of tuition and fees actually charged to a full-time resident
undergraduate student for academic year 2025-2026 as part of the public
university’s higher education institutional data inventory (HEIDI) data. A
public university shall report any revisions for any semester of the reported
academic year to HEIDI within 15 days of being adopted.

(2) Payments under section 236d must be made only to a public
university that certifies to the state budget director by the first business
day of November each year that its board did not adopt an increase in tuition
and fee rates for resident undergraduate students after September 1, 2024 for
the 2024-2025 academic year and that its board will not adopt an increase in
tuition and fee rates for resident undergraduate students for the 2025-2026 academic
year that is greater than 4.5% or $735.00, whichever is greater. For the
academic year 2026-2027, the tuition and fee restraint rate for resident
undergraduate students is an increase of not greater than 4.0% or $651.00, whichever
is greater. It is the intent of the legislature that in the next fiscal year,
the tuition and fee restraint rate will be adjusted only for the subsequent
academic year. As used in this subsection:

(a) “Fee” means any board-authorized fee that will be paid by
more than 1/2 of all resident undergraduate students at least once during their
enrollment at a public university, as described in the higher education
institutional data inventory (HEIDI) user manual. A public university
increasing a fee that applies to a specific subset of students or courses shall
provide sufficient information to prove that the increase applied to that
subset will not cause the increase in the average amount of board-authorized
total tuition and fees paid by resident undergraduate students in the academic
year to exceed the limit established in this subsection.

(b) “Tuition and fee rate” means the average of full-time
rates paid by a majority of students in each undergraduate class, based on an
unweighted average of the rates authorized by the public university board and
actually charged to students, deducting any uniformly rebated or refunded
amounts, for the 2 semesters with the highest levels of full-time equated
resident undergraduate enrollment during the academic year, as described in the
higher education institutional data inventory (HEIDI) user manual.

(3) Each public university shall certify to the state budget
director by the first business day of November each year that it complies with
all of the following requirements:

(a) The public university participates in reverse transfer
agreements described in section 286 with at least 3 community colleges in
this state.

(b) The public university does not and will not apply any of
the following criteria when determining whether credits earned outside the
public university by a student count toward a degree or certificate program
offered by the public university:

(i) Whether the credits were earned in a
dual enrollment program that counted the credits toward high school graduation
requirements.

(ii) Whether the credits were earned in a
course that was delivered in a high school classroom, community college
classroom or campus, or another location.

(iii) Whether the credits were earned in a
course that was delivered online, in person, or hybrid.

(iv) Whether other students enrolled in the
course in which the credits were earned were enrolled in high school or counted
the course toward high school graduation requirements.

(c) The public university actively participates in and
submits timely updates to the Michigan Transfer Network created as part of the
Michigan Association of Collegiate Registrars and Admissions Officers transfer
agreement.

(4) The state budget director shall implement uniform
reporting requirements to ensure that a public university receiving a payment
under section 236d has satisfied the tuition restraint requirements of this
section. The state budget director has the sole authority to determine if a
public university has met the requirements of this section. Information
reported by a public university to the state budget director under this
subsection must also be reported to the house and senate appropriations
subcommittees on higher education and the house and senate fiscal agencies.

Sec.
241e. (1) Payments under section 236 for operations increase must be made only
to a public university that certifies to the state budget director by the last
business day of August each year that it complies with the following:

(a) The institutional best practice described in subdivision
(c).

(b) One or more of the institutional best practices described
in subdivisions (d) to (g).

(c) The public university accepts the Michigan Transfer
Agreement, partners with the Michigan Transfer Network, and promotes clear
transfer pathways for interested students by doing all of the following:

(i) Has a policy to help transfer or accept
associate degrees from other accredited Michigan postsecondary education
institutions.

(ii) Publishes the policy described in
subparagraph (i) on the institution’s website in an
easily accessible way and in admissions materials.

(iii) Provides publicly available information
on the Michigan Transfer Network, applicable transfer pathways, and financial
aid available to transfer students, at no cost to the student.

(iv) Begins negotiations to increase the
number of reverse transfer agreements or articulation agreements and reports on
the progress toward completing the agreements to the state budget director by
the last business day in February.

(d) The public university requires all students to receive an
academic degree or certificate map that outlines required course sequencing,
program and institution requirements, declared minor program academic
requirements, and a recommended timeline within which courses should be taken
and in which specific semester or term in order to satisfy all program
requirements to allow the student to graduate on time.

(e) The public university provides non-credit-bearing
developmental or remedial courses at a reduced cost to students.

(f) The public university provides each degree- or
certificate-seeking student with a designated, trained academic advisor to
support student retention, persistence, and completion. The public university
shall require students to meet with their academic advisor at least once per
semester or term.

(g) The public university provides employees during business
hours to assist prospective and current students complete the Free Application
for Federal Student Aid.

(2) The state budget director shall implement uniform
reporting requirements to ensure that a public university receiving a payment
under section 236 for operations increase has satisfied the institutional best
practices requirements of this section. The state budget director has the sole
authority to determine if a public university has met the requirements of this
section. Information reported by a public university to the state budget director
under this subsection must also be reported to the house and senate
appropriations subcommittees on higher education and the house and senate
fiscal agencies.

(3) If a public university fails to comply with the
certification requirements of this section, the state treasurer may withhold
the monthly installments under section 241 to the public university until the
report is submitted. If a public university does not comply with the
certification requirements described in this section by the end of the fiscal
year, the public university forfeits the amount withheld. Forfeited funds must
lapse to the fund from which the funds were appropriated. The state budget director
shall notify the chairs of the house and senate appropriations subcommittees on
higher education at least 10 days before withholding funds from any public
university.

Sec.
241h. It is the intent of the legislature that taxpayer funds appropriated
under this article are to be used to educate public university students and
continue maintenance of public university buildings and other assets. The goal
of the legislature is that taxpayer funds not be used excessively for
administration. Therefore, a public university that receives an appropriation
under this article shall not spend more than 10% of that appropriation on
administration. A sum of money spent in excess of the 10% cap described in this
section by a public university results in a forfeiture of an amount equal to
50% of that sum from funds appropriated to that public university, not to
exceed the total amount appropriated to that public university under this article.
The auditor general may investigate allegations of violations of this section.
Funds forfeited under this section must revert, to the extent permitted by law,
to the general fund or the state school aid fund. For the purpose of
calculations under this section, the amount spent by a public university on
administrative costs does not include costs associated with staff working in
the following roles: teachers, facilities, public safety, technology, research,
instruction, academic support, student services, auxiliary services, or public
service.

Sec.
244. By October 15 of each year, a public university receiving funds in section
236 shall provide its longitudinal data system data set for the preceding
academic year to the center for inclusion in the statewide P‑20 longitudinal
data system described in section 94a. If the state budget director finds that a
university has not complied with this section, the state budget director is
authorized to withhold the monthly operations installments provided to that
university under section 241 until the state budget director finds that the
university has complied with this section.

Sec.
247. (1) The funds appropriated in section 236 for Michigan reconnect must be
distributed and administered by the department of lifelong education,
advancement, and potential pursuant to the Michigan reconnect grant act, 2020
PA 84, MCL 390.1701 to 390.1709, the Michigan reconnect grant recipient act,
2020 PA 68, MCL 390.1711 to 390.1723, and the department’s
administrative procedures for Michigan reconnect.

(2) For fiscal year 2025-2026 only, the department of lifelong education, advancement, and
potential may use the funds appropriated in section 236 for Michigan reconnect
to support students who are receiving awards under the temporary “ARP -
Michigan reconnect expansion to 21” program described in 2023 PA 119.

Sec.
248. (1) The funds appropriated in section 236 for Michigan achievement
scholarships must be distributed as provided in this section and section 248a,
pursuant to the administrative procedures for Michigan achievement scholarships
of the department.

(2) As used in this section:

(a) “Cost of attendance” means expenses for a student’s
tuition, mandatory fees, and contact hours for the student’s actual program of
study; books, supplies, and equipment required for courses of instruction;
housing and food costs; transportation expenses; federal student loan fees;
miscellaneous expenses, including a reasonable amount for the documented cost
of a personal computer, allowance for child care, or allowance for other
dependent care; costs related to a disability; costs of obtaining a license,
certification, or first professional credential; and reasonable costs for study
abroad programs.

(b) “Department” means the department of lifelong education,
advancement, and potential.

(c) “Eligible institution” means a public university that
receives an appropriation in section 236, a community college that receives an
appropriation in section 201, a federally recognized tribal college in this
state, or an independent nonprofit college or university in this state as
described in section 1 of 1966 PA 313, MCL 390.991.

(d) “Gift aid” includes federal Pell grants under 20 USC
1070a, tuition incentive program benefits under section 256, state tuition
grants under section 252, awards received for minimum payments awarded in
subsection (4), higher education expenses paid under the Michigan promise
zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, and all other
federal, state, local, or institutional aid in the form of grants,
scholarships, or discounts applied toward tuition and mandatory fees. Gift aid
does not include student loans, work-study awards, qualified withdrawals made
from education savings accounts to pay higher education expenses pursuant to
the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to
390.1486, or higher education expenses paid under the Michigan education trust
program pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421
to 390.1442.

(e) “High school equivalency certificate” means that term as
defined in section 4.

(f) “Last-dollar payment amount” means 1 of the following:

(i) For a student attending a community
college or federally recognized tribal college, an amount equal to the student’s
tuition, mandatory fees, and contact hours for the student’s actual program of
study, minus all gift aid received by the student.

(ii) For a student attending a public
university or an independent nonprofit college or university, or for a student
enrolled in a baccalaureate degree program described in section 121 of the
community college act of 1966, 1966 PA 331, MCL 389.121, an amount equal to the
student’s individual cost of attendance, minus all gift aid received by the
student.

(g) “Minimum payment” means a payment for any eligible cost
within the student’s individual cost of attendance. The minimum payment must be
awarded as a separate payment not included in the student’s need-based
financial aid. The minimum payment must not be reduced.

(h) “SAI eligible student” means a student who has completed
the Free Application for Federal Student Aid and meets at least 1 of the
following:

(i) For awards made during academic year
2023-2024, has an expected family contribution of $25,000.00 or less. An
individual is considered to have met the requirements of subsection (4) if the
individual received the Michigan achievement scholarship in academic year
2023-2024, was determined to have an expected family contribution of $25,000.00
or less in academic year 2023-2024, and has completed the Free Application for
Federal Student Aid for the subsequent award cycles.

(ii) For awards made during academic year
2024-2025 or a subsequent academic year, has completed the Free Application for
Federal Student Aid and has a student aid index number of 1 of the following,
as applicable:

(A) For a student indicating on the student’s Free
Application for Federal Student Aid that the student is the only member of the
student’s household or the student’s parents’ household attending a
postsecondary institution during that academic year, $30,000.00 or less.

(B) For a student indicating on the student’s Free
Application for Federal Student Aid that the student is not the only member of
the student’s household or the student’s parents’ household attending a
postsecondary institution during that academic year, the greater of the number
described in sub-subparagraph (A) or guidance determined by the department. For
the purposes of this sub-subparagraph, the department, in collaboration with
the state budget office and the house and senate fiscal agencies, may calculate
a student aid index number or may issue administrative guidance for the student
aid index eligibility of students with more than 1 member of the student’s
household or the student’s parents’ household attending a postsecondary
institution during that academic year. It is intended that the utilization of a
student aid index instead of expected family contribution does not adversely
impact the eligibility of students with multiple members of the student’s
household or student’s parents’ household attending postsecondary institutions.
It is further intended that the legislature and executive branch work
collaboratively to use Michigan achievement scholarship uptake and other
relevant data to establish a more permanent measure of financial need for the Michigan
achievement scholarship for subsequent academic years.

(3) An individual must meet all of the following criteria
each year to be eligible for a Michigan achievement scholarship awarded under
this section:

(a) Maintain residency in this state, as determined for
purposes of the Free Application for Federal Student Aid.

(b) Have graduated from high school in this state with a
diploma or certificate of completion or achieved a high school equivalency
certificate in 2023 or after.

(c) Be a full-time undergraduate student at an eligible
institution, as defined by that eligible institution, and be a first-time
enrollee in an eligible institution during the 2023-2024 academic year, or a
subsequent academic year, within 15 months after high school graduation or
attainment of a high school equivalency certificate or have received a Michigan
achievement scholarship in a previous academic year. For the purposes of this
subdivision, participation in a dual enrollment, early college, or other
similar program while attending high school does not disqualify a student from
being considered a first-time enrollee.

(d) Maintain satisfactory academic progress, as defined by
the eligible institution in which the student is enrolled.

(e) Not be in default on a federal student loan.

(f) Apply for all available gift aid for each academic year
in which the individual applies for a Michigan achievement scholarship.

(g) For a student who is enrolled at an eligible institution
that is a public university or an independent nonprofit college or university,
or who is enrolled in a baccalaureate degree program described in section 121
of the community college act of 1966, 1966 PA 331, MCL 389.121, at an eligible
institution, be an SAI eligible student.

(4) The amount awarded to an eligible student at an eligible
institution must equal 1 of the following, as applicable:

(a) The amount awarded to an eligible student who is enrolled
at an eligible institution that is a community college or federally recognized
tribal college where the student is eligible for that institution’s in-district
tuition rate must be equal to the sum of the last-dollar payment amount. The
amount awarded to an eligible student who is eligible for a federal Pell grant
under 20 USC 1070a must include an additional amount of $1,000.00.

(b) The amount awarded to an eligible student who is enrolled
at an eligible institution that is a community college or federally recognized
tribal college where the student is not eligible for that institution’s
in-district tuition rate must be the lesser of the last-dollar payment amount,
or the in-district tuition rate. The amount awarded to an eligible student who
is eligible for a federal Pell grant under 20 USC 1070a must include an
additional amount of $1,000.00.

(c) The amount awarded to an eligible student who is enrolled
at an eligible institution that is a public university or is enrolled in a
baccalaureate degree program described in section 121 of the community college
act of 1966, 1966 PA 331, MCL 389.121, at an eligible institution must equal
the sum of following:

(i) A minimum payment of $2,500.00.

(ii) The lesser of $3,000.00 or the student’s
last-dollar payment amount.

(d) The amount awarded to an eligible student at an eligible
institution that is an independent nonprofit college or university must equal
the sum of the following:

(i) A minimum payment of $2,500.00.

(ii) The lesser of $3,000.00 or the student’s
last-dollar payment amount.

(e) Money awarded under this subsection for a Michigan
achievement scholarship must be paid to the eligible institution for credit to
the student’s account.

(5) Subject to section 248a(3)(f)(i), an eligible student may receive a Michigan achievement
scholarship award under this section or section 248a for a maximum of 5
academic years, not more than 3 of which may be for attending eligible
institutions that are community colleges or federally recognized tribal
colleges unless the student is enrolled in a baccalaureate degree program
described in section 121 of the community college act of 1966, 1966 PA 331, MCL
389.121. A student may not receive an award under this section and section
248a(3)(f)(i) during the same academic year.

(6) The department shall work closely with participating
institutions to provide the highest level of participation and ensure that all
requirements of the program are met.

(7) From the funds appropriated in section 236(7) for the
Michigan achievement scholarships, the department may not use more than
$10,000,000.00 for the purposes of outreach programs to raise awareness of the
Michigan achievement scholarship described in this section and section 248a and
shall ensure that Michigan achievement scholarships are well publicized and
that high school students are provided information on the program. The
department may receive and expend funds received from outside sources for
scholarships, marketing, or other purposes related to the Michigan achievement
scholarship. The department shall provide the necessary funding and staff to
fully operate the program.

(8) The department shall convene a workgroup to consider and
advise the department on implementing policies for administering the Michigan
achievement scholarship. The workgroup shall include participation from the
Michigan Association of State Universities and its institutional members, the
Michigan College Access Network, the Michigan Community College Association and
its institutional members, the Michigan Independent Colleges and Universities
and its institutional members, and any other interested stakeholders and
offices as determined by the department. The workgroup shall make
recommendations on packaging order, packaging structure, definitions of terms
not otherwise defined in statute, and other administrative regulatory
requirements as necessary to implement the Michigan achievement scholarship.

(9) The following reporting obligations apply to the Michigan
achievement scholarship program:

(a) By February 15 of each year, the department shall provide
a written report, organized by eligible institution, to the house and senate
appropriations subcommittees on higher education, the house and senate fiscal
agencies, and the state budget director that includes the following information
for the previous academic year:

(i) The number of students who qualified for
a Michigan achievement scholarship.

(ii) The number of students who received a
Michigan achievement scholarship.

(iii) The average number of credits earned by
students who received a Michigan achievement scholarship.

(iv) The number of Michigan achievement
scholarships that were canceled due to failure to maintain satisfactory
academic progress as described in subsection (3)(d).

(v) The number of Michigan achievement
scholarships that were canceled due to a student ceasing attendance at an
eligible institution. The number must not include any known transfers to
another eligible institution.

(vi) The number of Michigan achievement
scholarships that were canceled due to a student’s failure to maintain
full-time status.

(vii) The average Michigan achievement
scholarship award per student, delineated by sector, including community
colleges, tribal colleges, public universities, independent colleges and
universities, and training institutions. As used in this subparagraph, “training
institutions” means training institutions accepted to participate in the
Michigan achievement scholarship program under section 248a.

(b) Each eligible institution whose students receive awards
under this section shall cooperate with the department in a timely manner to
facilitate the creation of the report under subdivision (a).

(10) By April 1 of each year, each eligible institution shall
submit a report to the department, the state budget office, and the house and
senate fiscal agencies providing information as to the average amount of
institutional grant aid awarded to full-time first-time undergraduate students
for the immediately preceding 2 institution fiscal years. If the average amount
of institutional grant aid awarded to full-time first-time undergraduate
students in fiscal year 2024-2025 is less than the average amount of
institutional grant aid awarded to full-time first-time undergraduate students
in fiscal year 2023-2024, the institution shall include in the report a
description of any changes to the institutional financial aid during the 2
immediately preceding fiscal years. An institution’s report of the average
amount of institutional grant aid awarded to full-time first-time undergraduate
students pursuant to this subsection must be consistent with data most recently
reported to the Integrated Postsecondary Education Data System.

(11) For each fiscal year, an eligible institution shall
maintain and report its compliance with the following tuition restraint
requirements, as applicable:

(a) For an eligible institution that is a community college,
the tuition restraint described in section 217b.

(b) For an eligible institution that is a public university
or independent nonprofit college or university, the tuition restraint described
in section 241c.

(12) The state budget director shall implement reporting
requirements to ensure that an eligible institution has satisfied the tuition
restraint requirements of this section. The state budget director has the sole
authority to determine if an eligible institution has met the requirements of
this section.

(13) If an eligible institution exceeds the applicable
tuition restraint level for 2 consecutive years, the state budget director may
consider the institution ineligible for funding under this section in the
subsequent academic year.

(14) If an institution is considered ineligible for funding
under this section, the state budget director shall reevaluate the status of
the ineligible institution after 1 academic year.

(15) It is the intent of the legislature that an eligible
institution will not make reductive changes to scholarship or financial aid
programs offered by that eligible institution that have the goal or net effect
of shifting the cost burden of those programs to the program described in this
section.

Sec.
251. (1) Payments of the amounts included in section 236e for the state
competitive scholarship program must be distributed pursuant to 1964 PA 208,
MCL 390.971 to 390.981.

(2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the
department of lifelong education, advancement, and potential shall determine an
actual state competitive scholarship award per student, which must be
$1,500.00, that ensures that the aggregate payments for the state competitive
scholarship program do not exceed the appropriation contained in section 236e
for the state competitive scholarship program. If the department determines
that insufficient funds are available to establish an award amount equal to
$1,500.00, the department shall immediately report to the house and senate
appropriations subcommittees on higher education, the house and senate fiscal
agencies, and the state budget director regarding the estimated amount of
additional funds necessary to establish a $1,500.00 award amount. For the
purpose of determining a student’s financial need under section 6 of 1964 PA
208, MCL 390.976, the department of lifelong education, advancement, and
potential shall presume that a student who receives a Michigan achievement
scholarship under section 248 has no need for a state competitive scholarship
under this section. It is the intent of the legislature that 1964 PA 208, MCL
390.971 to 390.981, will be amended to end competitive scholarship eligibility of
students enrolling in college for the first time after the fiscal year ending
on September 30, 2023, as those students may be eligible for the Michigan
achievement scholarship.

(3) The department of lifelong education, advancement, and
potential shall implement a proportional competitive scholarship award level
for recipients enrolled less than full-time in a given semester or term.

(4) If the department of lifelong education, advancement, and
potential increases the award per eligible student from that provided in the
previous fiscal year, it must not have the effect of reducing the number of
eligible students receiving awards in relation to the total number of eligible
applicants. Any increase in the award must be proportional for all eligible
students receiving awards.

(5) Veterans Administration benefits must not be considered
in determining eligibility for the award of scholarships under 1964 PA 208, MCL
390.971 to 390.981.

Sec.
252. (1) The amounts appropriated in section 236e for the state tuition grant
program must be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards must be made to all eligible
Michigan residents enrolled in undergraduate degree programs who are qualified.

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and
subject to subsections (6) and (7), the department of lifelong education,
advancement, and potential shall determine an actual tuition grant award per
student, which must be $3,000.00, that ensures that the aggregate payments for
the tuition grant program do not exceed the appropriation contained in section
236e for the state tuition grant program. If the department determines that
insufficient funds are available to establish an award amount equal to
$3,000.00, the department shall immediately report to the house and senate
appropriations subcommittees on higher education, the house and senate fiscal
agencies, and the state budget director regarding the estimated amount of
additional funds necessary to establish a $3,000.00 award amount. If the
department determines that sufficient funds are available to establish an award
amount equal to $3,000.00, the department shall immediately report to the house
and senate appropriations subcommittees on higher education, the house and
senate fiscal agencies, and the state budget director regarding the award
amount established and the projected amount of any projected year-end
appropriation balance based on that award amount. By February 18 of each fiscal
year, the department shall analyze the status of award commitments, shall make
any necessary adjustments, and shall confirm that those award commitments will
not exceed the appropriation contained in section 236e for the tuition grant
program. The determination and actions must be reported to the state budget
director and the house and senate fiscal agencies no later than the final day
of February of each year. If award adjustments are necessary, the students must
be notified of the adjustment by March 4 of each year. Subject to subsection
(9), for the purposes of determining a student’s financial need under 1966 PA
313, MCL 390.991 to 390.997a, the department of lifelong education,
advancement, and potential shall presume that a student who is eligible for the
Michigan tuition grant for the first time during academic year 2024-2025 or any
subsequent year, has no need for a state tuition grant under this section. It
is the intent of the legislature that 1966 PA 313, MCL 390.991 to 390.997a,
will be amended to end tuition grant eligibility of students enrolling in
college for the first time after the fiscal year ending on September 30, 2024,
as those students may be eligible for the Michigan achievement scholarship.

(4) The department of lifelong education, advancement, and
potential shall continue a proportional tuition grant award level for
recipients enrolled less than full-time in a given semester or term.

(5) If the department of lifelong education, advancement, and
potential increases the award per eligible student from that provided in the
previous fiscal year, it must not have the effect of reducing the number of
eligible students receiving awards in relation to the total number of eligible
applicants. Any increase in the grant must be proportional for all eligible
students receiving awards for that fiscal year.

(6) The department of lifelong education, advancement, and
potential shall not award more than $5,000,000.00 in tuition grants to eligible
students enrolled in the same independent nonprofit college or university in
this state. Any decrease in the grant must be proportional for all eligible
students enrolled in that college or university, as determined by the
department.

(7) The department of lifelong education, advancement, and
potential shall not award tuition grants to otherwise eligible students
enrolled in an independent college or university that does not report, in a
form and manner directed by and satisfactory to the department of lifelong
education, advancement, and potential, by October 31 of each year, all of the
following:

(a) The number of students in the most recently completed
academic year who in any academic year received a state tuition grant at the
reporting institution and successfully completed a program or graduated.

(b) The number of students in the most recently completed
academic year who in any academic year received a state tuition grant at the
reporting institution and took a remedial education class.

(c) The number of students in the most recently completed
academic year who in any academic year received a Pell grant at the reporting
institution and successfully completed a program or graduated.

(8) By February 1 of each year, each independent college and
university participating in the tuition grant program shall report to the house
and senate appropriations subcommittees on higher education, the house and
senate fiscal agencies, and the state budget director on its efforts to develop
and implement sexual assault response training for the institution’s title IX
coordinator, campus law enforcement personnel, campus public safety personnel,
and any other campus personnel charged with responding to on-campus incidents,
including information on sexual assault response training materials and the
status of implementing sexual assault response training for institutional
personnel.

(9) A student who received a scholarship under this section
prior to the academic year 2024-2025 may continue to receive a tuition grant
award under this section provided that the student meets all other criteria
required for the receipt of a tuition grant award.

Sec.
254. The sums appropriated in sections 236 and 236e for the state competitive
scholarship, tuition incentive, tuition grant, Michigan reconnect, and Michigan
achievement scholarship programs must be paid out of the state treasury and
must be distributed to the respective institutions under a quarterly payment
system as follows:

(a) For the state competitive scholarship and tuition grant
programs, 50% must be paid at the beginning of the state’s first fiscal
quarter, 30% during the state’s second fiscal quarter, 10% during the state’s
third fiscal quarter, and 10% during the state’s fourth fiscal quarter.

(b) For the tuition incentive program, Michigan reconnect,
and Michigan achievement scholarship, 65% must be paid at the beginning of the
state’s first fiscal quarter, and 35% during the state’s second fiscal quarter.

Sec.
256. (1) The funds appropriated in section 236 for the tuition incentive
program must be distributed as provided in this section and pursuant to the
administrative procedures for the tuition incentive program of the department
of lifelong education, advancement, and potential.

(2) As used in this section:

(a) “Phase I” means the first part of the tuition incentive
program defined as the academic period of 80 semester or 120 term credits, or
less, leading to an associate degree or certificate. Students must be enrolled
in a certificate or associate degree program and taking classes within the
program of study for a certificate or associate degree. Tuition will not be
covered for courses outside of a certificate or associate degree program.

(b) “Phase II” means the second part of the tuition incentive
program that provides assistance in the third and fourth year of 4-year degree
programs.

(c) “Department” means the department of lifelong education,
advancement, and potential.

(d) “High school equivalency certificate” means that term as
defined in section 4.

(3) An individual must meet the following basic criteria and
financial thresholds to be eligible for tuition incentive program benefits:

(a) To be eligible for phase I, an individual must meet all
of the following criteria:

(i) Be less than 20 years of age at the time
the individual graduates from high school with a diploma or certificate of
completion or achieves a high school equivalency certificate or, for students
attending a 5-year middle college approved by the Michigan department of
education, be less than 21 years of age when the individual graduates from high
school.

(ii) Be a United States citizen and maintain
residency in this state, as determined for purposes of the Free Application for
Federal Student Aid.

(iii) Be at least a half-time student, earning
less than 80 semester or 120 term credits at a participating educational
institution within 4 years of high school graduation or achievement of a high
school equivalency certificate. All program eligibility expires 10 years after
initial enrollment at a participating educational institution.

(iv) Meet the satisfactory academic progress policy
of the educational institution attended by the individual.

(b) To be eligible for phase II, an individual must meet
either of the following criteria in addition to the criteria in subdivision
(a):

(i) Complete at least 56 transferable
semester or 84 transferable term credits.

(ii) Obtain an associate degree or
certificate at a participating institution.

(c) To be eligible for phase I or phase II, an individual
must be financially eligible as determined by the department. An individual is financially
eligible for the tuition incentive program if the individual was eligible for
Medicaid from this state for 24 months within any 36 months prior to completion
of high school or achievement of a high school equivalency certificate. The
department shall accept certification of Medicaid eligibility only from the
department of health and human services for the purposes of verifying if a
person is Medicaid eligible for 24 months within any 36 months prior to
completion of high school or achievement of a high school equivalency
certificate. Certification of eligibility may begin in the sixth grade.

(4) For phase I, the department shall provide payment on
behalf of a person eligible under subsection (3). The department shall
only accept standard per-credit hour tuition billings and shall reject billings
that are excessive or outside the guidelines for the type of educational
institution.

(5) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs
must not be made for more than 80 semester or 120 term credits for any
individual student at any participating institution. The department shall not
do either of the following:

(i) Adopt or apply any total semester-credit
or term-credit maximum that is less than the 80 semester-credit or 120
term-credit maximum provided in this subdivision.

(ii) Adopt or apply any per-semester or
per-term credit maximum for a student whose semester-credit or term-credit load
will not result in exceeding the total 80 semester-credit or 120 term-credit
maximum provided in this subdivision.

(b) For persons enrolled at a Michigan community college, the
department shall pay the current in-district tuition and mandatory fees. For
persons residing in an area that is not included in any community college
district, the out-of-district tuition rate may be authorized.

(c) For persons enrolled at a Michigan public university, the
department shall pay lower division resident tuition and mandatory fees for the
current year.

(d) For persons enrolled at a Michigan independent, nonprofit
degree-granting college or university or a Michigan federal tribally controlled
community college, the department shall pay mandatory fees for the current year
and a per-credit payment that does not exceed the average community college
in-district per-credit tuition rate as reported by the last business day of
August for the immediately preceding academic year.

(6) A person participating in phase II may be eligible for
additional funds not to exceed $500.00 per semester or $400.00 per term up to a
maximum of $2,000.00 subject to the following conditions:

(a) Credits are earned in a 4-year program at a Michigan
degree-granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed
within 30 months of completion of the phase I requirements.

(7) The department shall work closely with participating
institutions to provide the highest level of participation and ensure that all
requirements of the program are met.

(8) The department shall notify students in an
age-appropriate manner of their financial eligibility for the program any time
after the student begins sixth grade.

(9) Except as otherwise provided in sections 13(c) and 17 of
the Michigan reconnect grant recipient act, 2020 PA 68, MCL 390.1713
and 390.1717, each institution shall ensure that all known available restricted
grants for tuition and fees are used before billing the tuition incentive
program for any portion of a student’s tuition and fees.

(10) The department shall ensure that the tuition incentive
program is well publicized and that eligible Medicaid clients are provided
information on the program. The department shall provide the necessary funding
and staff to fully operate the program.

(11) The department shall collaborate with the center to use
the P-20 longitudinal data system to report the following information for each
qualified postsecondary institution:

(a) The number of phase I students in the most recently
completed academic year who in any academic year received a tuition incentive
program award and who successfully completed a degree or certificate program.
Cohort graduation rates for phase I students must be calculated using the
established success rate methodology developed by the center in collaboration
with the postsecondary institutions.

(b) The number of students in the most recently completed
academic year who in any academic year received a Pell grant at the reporting
institution and who successfully completed a degree or certificate program.
Cohort graduation rates for students who received Pell grants must be
calculated using the established success rate methodology developed by the
center in collaboration with the postsecondary institutions.

(12) If a qualified postsecondary institution does not report
the data necessary to complete the reporting in subsection (11) to the P-20
longitudinal data system by October 15 for the prior academic year, the
department shall not award phase I tuition incentive program funding to
otherwise eligible students enrolled in that institution until the data are
submitted.

Sec.
260. (1) The department of lifelong education, advancement, and potential shall
work with student and postsecondary education groups, including the Michigan
College Access Network, the Michigan Association of School Counselors, the
Michigan Association of State Universities, the Michigan Community College
Association, and the Michigan Independent Colleges and Universities, to provide
and update an online informational resource for students in grades 9 through 12
and prospective and current students and families. The online informational
resource must be a website or a portion of an existing website titled “Paying
for College in Michigan” and designed and maintained by the department of
lifelong education, advancement, and potential that, to the extent practicable,
contains information, including, but not limited to, all of the following:

(a) A list of public and private community support centers,
student debt clinics, and other organizations and their contact information
submitted by Michigan College Access Network that provides free information and
services for student loan borrowers to help educate them about repayment
options and to help them access student loan programs or benefits for which
they may be eligible.

(b) Links to state and federal financial aid programs,
including FAFSA and College Scorecard.

(c) Links to each promise zone website and the financial aid
website to each community college, public university, and independent college
and university in this state.

(d) Benefits of federal student loans that may no longer be
available if a borrower refinances a loan.

(e) Direct links to net price calculators for each community
college receiving an appropriation in section 201 and each public university
receiving an appropriation in section 236.

(f) Definitions that clearly delineate the differences
between scholarships, grants, and loans.

(g) A description of net price calculators and how to use
them to create a personalized estimate of a student’s out-of-pocket cost for
the coming year based on basic family and financial information and likely
financial aid eligibility.

(h) Information on the fundamentals of borrowing and
repayment, including, but not limited to, all of the following:

(i) A link to the federal Public Service
Loan Forgiveness Program or other state or federal loan forgiveness programs.

(ii) Deciding how much to borrow.

(iii) Creating a plan for borrowing and
repayment.

(iv) Estimating how much borrowing is needed
for a given school year.

(v) Factors that affect total student loan
costs.

(vi) Tips for graduating with less student
loan debt.

(vii) A loan payment calculator or a link to a
loan payment calculator that can be used for different types of loans.

(viii) Links to federal student loan entrance
and exit counseling services and the FACT tool.

(ix) Student loan debt relief scams.

(i) Loan amortization information.

(2) A public university receiving an appropriation in section
236 shall place a prominent link to the website created under this section on
its website homepage.

(3) Independent colleges and universities in this state are
encouraged to place a link to the website created under this section on their
website homepages.

(4) By November 1 of each year, the department of lifelong
education, advancement, and potential shall inform each high school in this
state about the website described in this section and encourage them to
distribute the information to all students in grades 9 through 12.

(5) The department shall audit the website not less than once
every 6 months to ensure links continue to be accurate, active, and up-to-date
for students and families.

Sec.
263. (1) Included in the appropriation in section 236 for fiscal year 2025-2026
for MSU AgBioResearch is $2,982,900.00 and included in the appropriation in
section 236 for MSU Extension is $2,645,200.00 for Project GREEEN. Project
GREEEN is intended to address critical regulatory, food safety, economic, and
environmental problems faced by this state’s plant-based agriculture, forestry,
and processing industries. “GREEEN” is an acronym for Generating Research and
Extension to Meet Environmental and Economic Needs.

(2) The department of agriculture and rural development and
Michigan State University, in consultation with agricultural commodity groups
and other interested parties, shall develop Project GREEEN and its program
priorities.

Sec.
263b. Included in the appropriation in section 236 for fiscal year 2025-2026
for MSU AgBioResearch and MSU Extension is funding for the Agricultural Climate
Resiliency Program. The Agricultural Climate Resiliency Program is intended to
address environmental sustainability of Michigan agriculture and promote the
protection and efficient use of Michigan’s water resources.

Sec.
264. Included in the appropriation in section 236 for fiscal year 2025-2026 for
Michigan State University is $80,000.00 for the Michigan Future Farmers of
America Association. This $80,000.00 allocation must not supplant any existing
support that Michigan State University provides to the Michigan Future Farmers
of America Association.

Sec.
268. (1) For the fiscal year ending September 30, 2026, it is the intent of the
legislature that funds be allocated for unfunded North American Indian tuition
waiver costs incurred by public universities under 1976 PA 174, MCL
390.1251 to 390.1253, from the general fund.

(2) By January 15 of each year, the department of lifelong
education, advancement, and potential shall annually submit to the state budget
director, the house and senate appropriations subcommittees on higher
education, and the house and senate fiscal agencies a report on North American
Indian tuition waivers for the preceding academic year that includes, but is
not limited to, all of the following information:

(a) The number of waiver applications received and the number
of waiver applications approved.

(b) For each public university submitting information under
subsection (3), all of the following:

(i) The number of graduate and undergraduate
North American Indian students enrolled each term for the previous academic
year.

(ii) The number of North American Indian
waivers granted each term, including to continuing education students, and the
monetary value of the waivers for the previous academic year.

(iii) The number of North American Indian
students who receive a granted waiver for the previous academic year.

(iv) The number of graduate and undergraduate
students attending under a North American Indian tuition waiver who withdrew
from the public university each term during the previous academic year. For
purposes of this subparagraph, a withdrawal occurs when a student who has been
awarded the waiver withdraws from the institution at any point during the term,
regardless of enrollment in subsequent terms.

(v) The number of graduate and undergraduate
students attending under a North American Indian tuition waiver who
successfully transfer to a 4-year public or private university, or complete a
degree or certificate program, separated by degree or certificate level, and
the graduation rate for graduate and undergraduate students attending under a
North American Indian tuition waiver who complete a degree or certificate
within 150% of the normal time to complete, separated by the level of the
degree or certificate.

(3) By January 1 of each year, a public university that
receives an appropriation in section 236, or a tribal college receiving
pass-through funds under section 269, 270, or 270c, shall provide to the
department of lifelong education, advancement, and potential any information
necessary for preparing the report detailed in subsection (2), using
guidelines and procedures developed by the department of lifelong education,
advancement, and potential.

(4) The department of lifelong education, advancement, and
potential may consolidate the report required under this section with the
report required under section 223, but a consolidated report must separately
identify data for public universities and data for community colleges.

Sec.
269. For fiscal year 2025-2026, from the amount appropriated in section 236 to
Central Michigan University for costs incurred under the North American Indian
tuition waiver, $80,800.00 must be paid to Saginaw Chippewa Tribal College for
the costs of waiving tuition for North American Indians under 1976 PA 174, MCL
390.1251 to 390.1253. It is the intent of the legislature that Saginaw Chippewa
Tribal College provide the department of lifelong education, advancement, and
potential the necessary information for the college to be included in the
report required under section 268.

Sec.
270. For fiscal year 2025-2026, from the amount appropriated in section 236 to
Lake Superior State University for costs incurred under the North American
Indian tuition waiver, $498,800.00 must be paid to Bay Mills Community
College for the costs of waiving tuition for North American Indians under 1976
PA 174, MCL 390.1251 to 390.1253. It is the intent of the legislature that
Bay Mills Community College provide the department of lifelong education,
advancement, and potential the necessary information for the college to be
included in the report required under section 268.

Sec.
270c. For fiscal year 2025-2026, from the amount appropriated in section 236 to
Northern Michigan University for costs incurred under the North American Indian
tuition waiver, $105,700.00 is to be paid to Keweenaw Bay Ojibwa Community
College for the costs of waiving tuition for North American Indians under 1976
PA 174, MCL 390.1251 to 390.1253. It is the intent of the legislature that
Keweenaw Bay Ojibwa Community College provide the department of lifelong
education, advancement, and potential the necessary information for the
community college to be included in the report required under section 268.

Sec.
275k. (1) Not later than December 1 of each year, each university that receives
an appropriation in section 236 that, in the current or previous academic
year, serves or has served as an authorizing body shall submit a report to the
house and senate appropriations subcommittees on higher education, the house
and senate fiscal agencies, the state budget director, and the department of
education containing, at a minimum, all of the following information, as
applicable:

(a) A list of all of the schools currently authorized, and
the following information for each school:

(i) The year in which the school was
authorized.

(ii) The location of each school.

(iii) The owner of the property at which each
school is located and the physical buildings utilized by the school, as
applicable.

(b) A list identifying any schools that were closed or lost
their authorization in the current or previous academic year.

(c) A description of any new contracts for the operation of a
public school academy that will operate as the successor to a public school
academy that is currently being operated under a contract issued by another
authorizing body that is currently performing in the bottom 5% of schools.

(d) The academic performance of each school currently
authorized, including whether a school is identified by the department of
education as a partnership school. If a school is identified as a partnership
school under this subdivision, the authorizing body shall include a description
of corrective actions in the school’s partnership agreement, the duration of
the partnership agreement, and an assessment of progress toward improvement.

(e) The total enrollment of each school at the time of
submission, the grades served, and student turnover rate compared to the
previous academic year, as applicable.

(f) Aggregated student enrollment data for students with an
individualized education program as well as the total amount of special
education cost reimbursements received by each school during the school’s most
recently completed fiscal year.

(g) The total number of fees, reimbursements, contributions,
or charges permitted under section 502(6) of the revised school code, 1976 PA
451, MCL 380.502, that are assigned to each school currently authorized in a
single academic year.

(h) The names of the members of the board of directors of
each school currently authorized and the date that each member of each board
was appointed, and a description of the methodology used by the authorizing
body to select members for the boards of directors for each school currently
authorized by the authorizing body.

(i) The name of the applicant who applied and received
approval to organize each currently authorized school.

(j) The list of contracts and length of their terms, with
education service providers associated with each school currently authorized
pursuant to section 502 of the revised school code, 1976 PA 451, MCL 380.502,
as applicable. The contracts described in this subdivision include, but are not
limited to, those described in section 502(2)(d) of the revised school code,
1976 PA 451, MCL 380.502.

(k) Activities undertaken by each university to ensure that
the board of directors of each school complies with the open meetings act, 1976
PA 267, MCL 15.261 to 15.275, the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246, and laws prohibiting conflicts of interest.

(l) A description of the activities
undertaken by the university to meet the functions of an authorizing body under
section 502 of the revised school code, 1976 PA 451, MCL 380.502, as
applicable.

(m) A financial report of the authorizing body’s use of fees,
reimbursements, contributions, or charges collected or retained under section
502(6) of the revised school code, 1976 PA 451, MCL 380.502. This report must
include all of the following, at a minimum:

(i) The total amount of fees collected or
retained under section 502(6) of the revised school code, 1976 PA 451, MCL
380.502, by the authorizing body for the authorizing body’s most recent fiscal
year.

(ii) The amount of funds reported under
subparagraph (i) that were spent on compensation for
faculty and staff employed primarily to meet the functions of an authorizing
body. For the purpose of this subparagraph, an employee is presumed to be
primarily employed to meet the functions of an authorizing body if that
employee spends more than 50% of the employee’s time on those activities.

(iii) The number of positions, organized by
job title, associated with expenditures reported under subparagraph (ii).

(iv) The amount of funds reported under
subparagraph (i) that were spent on contractual services
to meet the functions of an authorizing body.

(v) The amount of funds reported under
subparagraph (i) that were spent on other overhead costs
to meet the functions of an authorizing body.

(vi) The amount of funds reported under
subparagraph (i) that were transferred to another
operating unit within the university.

(vii) The amount of funds reported under
subparagraph (i) that were spent on activities other than
functioning as an authorizing body, including a list of those activities and
the amount associated with each activity.

(n) An executive summary section that provides relevant
summary data for reporting requirements under subdivisions (a) to (m).

(2) A report submitted under this section must be in a format
that meets accessibility standards for viewing on the internet under the
Americans with disabilities act of 1990, Public Law 101-336.

(3) A report submitted under this section must be published
and updated through a link on the homepage of the public university’s website.

(4) In addition to the reporting requirements under this
section, each authorizing body that receives an appropriation under section 236
shall adopt a facilities policy ensuring that any structures or other property
vacated by a public school academy that ceases operation not contribute to
blight in the surrounding neighborhood or community in which the school had
previously operated.

(5) As used in this section, “authorizing body” means that
term as defined in section 501 of the revised school code, 1976 PA 451, MCL
380.501.

Sec.
276. (1) Included in the appropriation for fiscal year 2025-2026 for each
public university in section 236 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks future faculty fellowship program that is intended to
increase the pool of academically or economically disadvantaged candidates
pursuing faculty or administration careers in postsecondary education in this
state. Preference may not be given to applicants on the basis of race, color,
ethnicity, gender, or national origin. Institutions should encourage
applications from applicants who would otherwise not adequately be represented
in the graduate student, faculty, or administration populations. Each public
university shall apply the percentage change applicable to every public university
in the calculation of appropriations in section 236 to the amount of funds
allocated to the future faculty fellowship program.

(2) Each public university shall administer the program in a
manner prescribed by the department of labor and economic opportunity. The
department of labor and economic opportunity shall use a good-faith effort
standard to evaluate whether a fellowship is in default. All of the following
apply to the program:

(a) By June 15 of each year, public universities shall report
any anticipated unexpended or unencumbered program funds to the department of
labor and economic opportunity. Encumbered funds are those funds that were
committed by a fellowship agreement that is signed during the current fiscal
year or administrative expenses that have been approved by the department of
labor and economic opportunity.

(b) Before September 1 of each year, unexpended or
unencumbered funds may be transferred, under the direction of the department of
labor and economic opportunity, to a future faculty fellowship program at
another public university to be awarded to an eligible candidate at that public
university.

(c) Program allocations not expended or encumbered by
September 30, 2027 must be returned to the department of labor and economic
opportunity so that those funds may lapse to the state general fund.

(d) Not more than 5% of each public university’s allocation
for the program may be used for administration of the program.

(e) In addition to the appropriation for fiscal year
2025-2026, any revenue received during prior fiscal years by the department of
labor and economic opportunity from defaulted fellowship agreements is
appropriated for the purposes originally intended.

Sec.
277. (1) Included in the appropriation for fiscal year 2025-2026 for each
public university in section 236 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks college day program that is intended to introduce
academically or economically disadvantaged schoolchildren to the potential of a
college education in this state. Preference may not be given to participants on
the basis of race, color, ethnicity, gender, or national origin. Public
universities should encourage participation from those who would otherwise not
adequately be represented in the student population.

(2) Individual program plans of each public university must
include a budget of equal contributions from this program, the participating
public university, the participating school district, and the participating
independent degree-granting college. College day funds must not be expended to
cover indirect costs. Not more than 20% of the university match may be
attributable to indirect costs. Each public university shall apply the
percentage change applicable to every public university in the calculation of appropriations
in section 236 to the amount of funds allocated to the college day program.

(3) Each public university shall administer the program
described in this section in a manner prescribed by the department of labor and
economic opportunity.

Sec. 278. (1) Included in the appropriation for fiscal year
2025-2026 for each public university in section 236 is funding for the Martin
Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services
program for developing academically or economically disadvantaged student
retention programs for 4-year public and independent educational institutions
in this state. Preference may not be given to participants on the basis of
race, color, ethnicity, gender, or national origin. Institutions should
encourage participation from those who would otherwise not adequately be
represented in the student population.

(2) An award made under this program to any 1 institution
must not be greater than $150,000.00, must have an award period of no more than
2 years, and must be matched on a 70% state, 30% college or university basis.

(3) The department of labor and economic opportunity shall
administer the program described in this section.

Sec.
279. (1) Included in the appropriation for fiscal year 2025-2026 for each
public university in section 236 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks college/university partnership program between 4-year
public and independent colleges and universities and public community colleges,
which is intended to increase the number of academically or economically
disadvantaged students who transfer from community colleges into baccalaureate
programs in this state. Preference may not be given to participants on the
basis of race, color, ethnicity, gender, or national origin. Institutions
should encourage participation from those who would otherwise not adequately be
represented in the transfer student population.

(2) The grants must be made under the program described in
this section to Michigan public and independent colleges and universities. An
award to any 1 institution must not be greater than $150,000.00, must have an
award period of no more than 2 years, and must be matched on a 70% state, 30%
college or university basis.

(3) The department of labor and economic opportunity shall
administer the program described in this section.

Sec.
280. (1) Included in the appropriation for fiscal year 2025-2026 for each
public university in section 236 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks visiting professors program, which is intended to
increase the number of instructors in the classroom to provide role models for
academically or economically disadvantaged students. Preference may not be
given to participants on the basis of race, color, ethnicity, gender, or
national origin. Public universities should encourage participation from those
who would otherwise not adequately be represented in the student population.

(2) The department of labor and economic opportunity shall
administer the program described in this section.

(3) The amount allocated to each public university is $11,184.00
and is subject to an award period of no more than 2 years. Each public
university receiving funds for fiscal year 2025-2026 under this section shall
report to the department of labor and economic opportunity by April 15, 2026
the amount of its unobligated and unexpended funds as of March 31, 2026 and a
plan to expend the remaining funds by the end of the fiscal year. The amount of
funding reported as not being expended may be transferred, under the direction
of the department, to another public university for use under this section.

Sec.
281. (1) Included in the appropriation for fiscal year 2025-2026 for each
public university in section 236 is funding under the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator
development program, which is intended to increase the number of academically
or economically disadvantaged students who enroll in and complete K-12 teacher
education programs at the baccalaureate level and teach in this state.
Preference may not be given to participants on the basis of race, color,
ethnicity, gender, or national origin. Institutions should encourage
participation from those who would otherwise not adequately be represented in
the teacher education student population.

(2) The program described in this section must be
administered by each state-approved teacher education institution in a manner
prescribed by the department of labor and economic opportunity.

(3) Approved teacher education institutions may and are
encouraged to use select student support services funding in coordination with
the Morris Hood, Jr. funding to achieve the goals of the program described in
this section.

Sec.
282. (1) Each institution receiving funds for fiscal year 2025-2026 under
section 278, 279, or 281 shall provide to the department of labor and economic
opportunity by April 15, 2026 the unobligated and unexpended funds as of March
31, 2026 and a plan to expend the remaining funds by the end of the fiscal
year. Notwithstanding the award limitations in sections 278 and 279, the amount
of funding reported as not being expended will be reallocated to the
institutions that intend to expend all funding received under section 278, 279,
or 281.

(2) Funds received for the purpose of administering programs
under sections 278, 279, and 281 must not be used for direct financial aid or
indirect financial aid. However, a public university may provide academic
incentives to motivate participating students as approved by the department. As
used in this subsection:

(a) “Direct financial aid” includes, but is not limited to,
scholarships, payment of tuition, stipends, and work-studies.

(b) “Indirect financial aid” includes, but is not limited to,
transportation, textbook allowances, child care support, and assistance with
medical premiums or expenses.

Sec.
283. (1) Using the data provided to the center as required by section 244 of
this act, the center shall use the P-20 longitudinal data system to inform
interested Michigan high schools and the public regarding the aggregate
academic status of its students. The center shall work with the public
universities and the Michigan Association of State Universities and in
cooperation with the Michigan Association of Secondary School Principals.

(2) Michigan high schools shall systematically inform the
public universities about the use of information received under this section in
a manner prescribed by the Michigan Association of Secondary School Principals
in cooperation with the Michigan Association of State Universities.

(3) The center shall conduct a review of the statewide
longitudinal data system and associated data collection processes to identify
strategies that would allow for the legal dissemination of student directory
information for all students in grades 11 and 12 to Michigan public and
independent nonprofit postsecondary institutions.

Sec.
284. Using data provided to the center as required by section 244 of this act,
the center shall use the P‑20 longitudinal data system to inform
Michigan community colleges regarding the academic status of community college
transfer students. The center shall work with the department of lifelong
education, advancement, and potential, the universities, and the Michigan
Association of State Universities in cooperation with the Michigan Community
College Association.

Sec.
285. From the funds appropriated in section 236(2), public universities shall
work with the state community colleges to encourage the transfer of students
from the community colleges to the public universities and to facilitate the
transfer of credits from the community colleges to those public universities.
Each public university that receives an appropriation under section 236 shall
consult with the department of lifelong education, advancement, and potential
at least once an academic year on the policies and services the institution
implements regarding transfer credits and transfer students.

Sec.
286. From the funds appropriated in section 236(2), public universities shall
work with community colleges in this state to implement statewide reverse
transfer agreements to increase the number of students that are awarded
credentials of value upon completion of the necessary credits. These statewide
agreements shall enable students who have earned a significant number of
credits at a community college and transfer to a baccalaureate granting
institution before completing a degree to transfer the credits earned at the
baccalaureate institution back to the community college in order to be awarded
a credential of value. Each public university that receives an appropriation
under section 236 shall consult with the department of lifelong education,
advancement, and potential at least once an academic year on the policies and
services the institution implements regarding reverse transfer agreements.

Enacting section 1. (1) In accordance with section 30 of
article IX of the state constitution of 1963, total state spending on school
aid under article I of the state school aid act of 1979, 1979 PA 94, MCL
388.1601 to 388.1772, as amended by 2024 PA 120, 2024 PA 148, and by this
amendatory act, from state sources for fiscal year 2024-2025 is estimated at
$18,811,776,900.00 and state appropriations for school aid to be paid to local
units of government for fiscal year 2024-2025 are estimated at $17,366,388,900.00.
In accordance with section 30 of article IX of the state constitution of 1963,
total state spending on school aid under article I of the state school aid act
of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by this amendatory
act, from state sources for fiscal year 2025-2026 is estimated at
$18,881,123,200.00 and state appropriations for school aid to be paid to local
units of government for fiscal year 2025-2026 are estimated at $17,433,304,100.00.

(2)
In accordance with section 30 of article IX of the state constitution of 1963,
total state spending from state sources for community colleges for fiscal year
2025-2026 under article II of the state school aid act of 1979, 1979 PA 94,
MCL 388.1801 to 388.1830, as amended by this amendatory act, is estimated at
$493,032,100.00 and the amount of that state spending from state sources to be
paid to local units of government for fiscal year 2025-2026 is estimated at
$493,032,100.00.

(3)
In accordance with section 30 of article IX of the state constitution of 1963,
total state spending from state sources for higher education for fiscal year
2025-2026 under article III of the state school aid act of 1979, 1979 PA 94,
MCL 388.1836 to 388.1891, as amended by this amendatory act, is estimated at
$2,333,712,000.00 and the amount of that state spending from state sources to
be paid to local units of government for fiscal year 2025-2026 is estimated at
$0.00.

Enacting section 2.
Sections 12c, 19b, 20f, 22c, 22e, 23h, 27f, 27g, 27n, 27o, 27s, 31j, 32p, 35d,
35j, 51h, 54b, 61s, 67a, 67b, 67d, 97a, 97h, 97j, 97m, 98d, 99c, 99d, 99g, 99i,
99s, 99t, 99u, 99x, 99ff, 99hh, 99ii, 99jj, 104f, 201g, 201h, 236f, 236n, 236r,
and 287 of the state school aid act of 1979, 1979 PA 94, MCL 388.1612c,
388.1619b, 388.1620f, 388.1622c, 388.1622e, 388.1623h, 388.1627f, 388.1627g,
388.1627n, 388.1627o, 388.1627s, 388.1631j, 388.1632p, 388.1635d, 388.1635j,
388.1651h, 388.1654b, 388.1661s, 388.1667a, 388.1667b, 388.1667d, 388.1697a,
388.1697h, 388.1697j, 388.1697m, 388.1698d, 388.1699c, 388.1699d, 388.1699g,
388.1699i, 388.1699s, 388.1699t, 388.1699u, 388.1699x, 388.1699ff, 388.1699hh,
388.1699ii, 388.1699jj, 388.1704f, 388.1801g, 388.1801h, 388.1836f, 388.1836n,
388.1836r, and 388.1887 are repealed.

This
act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of
Representatives

Approved___________________________________________

____________________________________________________

Governor