SB 166 — Appropriations: school aid; fiscal year 2025-2026 appropriations for K-12 school aid; provide for. Amends, adds & repeals (See bill).

Except as otherwise CRM S01533'25 (S-3) CR-1 mposkv 1 provided in this subsection, an individual pupil must not be counted for more than a total of 1.0 full-time equated membership.

(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, CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 membership in the public school academy.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (A) The pupil attended a live lesson from the teacher.

CRM S01533'25 (S-3) CR-1 mposkv 1 (C) The pupil and teacher engaged in a subject-oriented telephone conversation.

(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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 that communication.

This CRM S01533'25 (S-3) CR-1 mposkv 1 interaction may occur through, but is not limited to, means such as email, telephone, instant messaging, or face-to-face conversation.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (2) The teacher is certified for the grade level or is working under a valid substitute permit, authorization, or approval issued by the department.

CRM S01533'25 (S-3) CR-1 mposkv 1 (3) The teacher has a personnel identification code provided by the center.

(i) For a new district or public school academy beginning its operation after December 31, 1994, membership for the first 2 full CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

(k) For an extended school year program approved by the CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 superintendent, a pupil enrolled, but not scheduled to be in regular daily attendance, on a pupil membership count day, is counted in membership.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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:

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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 CRM S01533'25 (S-3) CR-1 mposkv 1 the individual is a student with a disability as that term is defined in R 340.1702 of the Michigan Administrative Code.

(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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 full-time membership for each of those pupils is allocated to the district or intermediate district providing the remainder of the hours of instruction.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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, CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 written approval of all parties to the cooperative agreement.

(iv) Credit earned is awarded to the pupil and placed on the CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

(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.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.

However,A ifdistrict themay specialclaim membershipmore countingthan provisions1/12 under this subdivision and the CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 operation of thea otherfull-time equated membership countingwithin provisionsa undermonth thisfor subsectionan resultenrolled in a pupil beingwho countedwas as more than 1.0 FTE in afull fiscalattendance year,and theCRM paymentS01533'25 made(S-3) forCR-1 themposkv pupil1 undersuccessfully sectionscompleted 22a and 22b must not be based on more than 1.01 FTErequired forcourse. that pupil, and any portion of an FTE for that pupil that exceeds 1.0 is instead paid under section 25g.

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.

A pupil described in this sub-subparagraph may be CRM S01533'25 (S-3) CR-1 mposkv 1 retroactively reported as being in full attendance for the first month that the pupil participated in the program.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (ee) A pupil participating in a virtual course under section 21f is counted in membership in the district enrolling the pupil.

(jj) A district that borders another state or a public school academy that operates at least grades 9 to 12 and is located within CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 is located in the bordering state and within 20 miles of the border with this state if all of the following are met:

CRM S01533'25 (S-3) CR-1 mposkv 1 (kk) A pupil enrolled in a middle college program may be counted for more than a total of 1.0 full-time equated membership CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

(ii) If the district's or public school academy's membership for pupils counted under section 166b is less than 5% of the CRM S01533'25 (S-3) CR-1 mposkv 1 district's or public school academy's membership for pupils not counted in membership under section 166b in the immediately CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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:

(d) A pupil enrolled in a district other than the pupil's district of residence if the pupil is enrolled in accordance with CRM S01533'25 (S-3) CR-1 mposkv 1 section 105 or 105c.

(e) A pupil who has made an official written complaint or CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (g) A pupil enrolled in an alternative education program operated by a district other than the pupil's district of residence CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 who meets 1 or more of the following:

CRM S01533'25 (S-3) CR-1 mposkv 1 (m) A pupil enrolled in a district other than the pupil's district of residence under section 1148(2) of the revised school CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 code, MCL 380.1148.

CRM S01533'25 (S-3) CR-1 mposkv 1 (iii) Second Wednesday in February.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 day is only counted as 1.0 full-time equated membership if the pupil resumed attendance in the district, intermediate district, or CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 public school academy within 45 days after the pupil membership count day or supplemental count day of that particular year.

(i) A 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 2020-2021, 2021-2022, 2022-2023, and 2023-2024 school years.2024-2025 and 2025-2026 school years.

(ii) For the 2020-2021, 2021-2022, 2022-2023, and 2023-2024 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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (10) "The revised school code" means the revised school code, 1976 PA 451, MCL 380.1 to 380.1852.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

(18) "Taxable value" means, except as otherwise provided in CRM S01533'25 (S-3) CR-1 mposkv 1 this article, the taxable value of property as determined under section 27a of the general property tax act, 1893 PA 206, MCL CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 211.27a.

(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 $17,769,551,300.00 $17,688,951,600.00$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 $334,100,000.00 $481,400,000.00 from CRM S01533'25 (S-3) CR-1 mposkv 1 the MPSERS retirement obligation reform reserve fund created under section 147b, and an amount not to exceed $30,000,000.00 from the educator CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 $18,779,755,500.00$18,366,334,700.00 from the state school aid fund, the sum of $50,426,700.00$73,151,100.00 from the general fund, an amount not to exceed the$100,000,000.00 remaining balance, estimated at $283,400,000.00, 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, and an amount not to exceed $70,000,000.00$30,000,000.00 from the educator fellowship public provider fund created inunder section 27d.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.

(3) Any general fund allocations under this article that are not expended by the end of the fiscal year are transferred to the CRM S01533'25 (S-3) CR-1 mposkv 1 school aid stabilization fund created under section 11a.

The CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 state treasurer shall deposit into the school aid stabilization fund all of the following:

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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).

From the state school aid fund money appropriated in CRM S01533'25 (S-3) CR-1 mposkv 1 section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $1,000,000.00 $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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 Sec.

(1) From the state school aid fund money appropriated in section 11, there is allocated $5,000,000.00 for 2024-2025 2025-2026 only and from the general fund money appropriated in section 11, there is allocated $3,075,000.00 $3,000,000.00 for 2024-2025 2025-2025-2026 2026only 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 9 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 2,700 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 9 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 2,700 2,600 pupils in membership for a fiscal year after 2016-2017, an amount not to exceed $2,425,000.00 for 2024-2025 2025-2026 for the purpose of employing school nurses, CRM S01533'25 (S-3) CR-1 mposkv 1 classroom aides, school social workers, and community health workers;

The department CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

(3) For 2024-2025, 2025-2026,2025-2026 only, from the general fund money allocated in subsection (1), there is allocated an amount not to exceed $650,000.00 $575,000.00 for nutritional services to children described in subsection (1).

(4) For 2024-2025, 2025-2026,2025-2026 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 CRM S01533'25 (S-3) CR-1 mposkv 1 impacted by an executive proclamation of emergency described in subsection (1) concerning drinking water.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (5) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.

(5) Money available in the school consolidation and CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 buildings within a district, among 1 or more districts, or among 1 or more intermediate districts.

CRM S01533'25 (S-3) CR-1 mposkv 1 (i) Financial services, which may include, but is not limited to, the following:

(E) Software consolidation to achieve common software CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 throughout the intermediate district.

CRM S01533'25 (S-3) CR-1 mposkv 1 (vi) Debt issuance and management, including at least all of the following:

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

(10) FromFor the2025-2026, state$83,400,000.00 schoolfrom aidthe fundschool moneyconsolidation appropriatedand underinfrastructure subsectionfund (6),must therebe isdeposited allocatedinto anthe amountstate notschool toaid exceedfund. $1,200,000.00 for Launch Michigan to do all of the following:

(a) Conduct statewide consolidation and efficiency studies.

(b) Oversee grant administration, including, but not limited to, documenting districts' and intermediate districts' compliance with the requirements of this section and section 12c.

(c) Provide technical assistance to districts and intermediate school districts in the implementation of consolidation or the consolidation of services identified in the feasibility study or analysis conducted under this section and any funds distributed under section 12c(1).

(d) Collect and distribute informational material containing best practices identified during the implementation of CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 consolidation or the consolidation of services under this section.

11z.

(1) The school aid countercyclical budget and foundation stabilization fund is created as a separate account in the state school aid fund.

(2) The state treasurer may receive money or other assets from any source for deposit into the school aid countercyclical budget and foundation stabilization fund.

(3) The state treasurer shall direct the investment of the school aid countercyclical budget and foundation stabilization fund.

The state treasurer shall credit to the school aid countercyclical budget and foundation stabilization fund interest and earnings from fund investments.

(4) Money in the school aid countercyclical budget and foundation stabilization fund at the close of a fiscal year remains in the school aid countercyclical budget and foundation stabilization fund and does not lapse to the state school aid fund or the general fund.

(5) Except as provided in subsections (6) and (7), money available in the school aid countercyclical budget and foundation stabilization fund may not be expended without a specific appropriation from the school aid countercyclical budget and foundation stabilization fund.

(6) If, for a given fiscal year, the department of treasury determines that proration of payments under this article will be required under section 296, the amount necessary to avoid proration, or an amount necessary to reduce proration, may be deposited from the school aid countercyclical budget and foundation stabilization fund into the state school aid fund.

The state budget director shall notify the legislature of a deposit under this CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 subsection at least 30 calendar days or 6 legislative session days, whichever is more, before a deposit is made.

Funds deposited into the state school aid fund under this subsection must be used only to eliminate or reduce proration under this article, as required under section 296.

If, after making final calculations under section 296, the amount deposited into the state school aid fund under this section exceeds the amount actually necessary to eliminate or reduce proration, the excess amount must be deposited back into the school aid countercyclical budget and foundation stabilization fund.

(7) If year-over-year revenues for the state school aid fund are projected to decline, as determined during the final revenue estimating conference of a given fiscal year, the gross year-over- year decline in state school aid fund revenue may be deposited from the school aid countercyclical budget and foundation stabilization fund into the state school aid fund.

The state budget director shall notify the legislature of a deposit under this subsection at least 30 calendar days or 6 legislative session days, whichever is more, before a deposit is made.

(8) Funds deposited into the state school aid fund under this section must be appropriated only for purposes under article I.

(9) For the fiscal year ending September 30, 2025 2026 only, $25,000,000.00 $50,000,000.00 from the state school aid fund is deposited into the school aid countercyclical budget and foundation stabilization fund.

(10) As used in this section:

(a) "Revenue estimating conference" means a revenue estimating conference occurring in May as described in section 367b of the management and budget act, MCL 18.1367b.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (b) "Year-over-year" means a comparison of the fiscal year in which calculations are being made to the fiscal year immediately preceding the fiscal year in which calculations are being made.

Sec.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (3) From the amount allocated in subsection (1), $35,000,000.00 is allocated as follows:

(d) $4,000,000.00 to Taylor School District for costs related to a new high school in the districtdistrict. or for other infrastructure purposes.

(4) NotwithstandingSubject to the provisions of this subsection, in addition to the money appropriated in section 17b,11, from the departmentstate shallschool makeaid paymentsfund, underthere thisis sectionappropriated onand allocated for 2025-2026 an amount not to exceed $4,000,000.00 to Taylor School District for costs related to a schedulenew determinedhigh byschool in the department.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) (4) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the CRM S01533'25 (S-3) CR-1 mposkv 1 department.

(1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $66,600,000.00, and from the school consolidation and infrastructure fund money appropriated in section CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 11, there is allocated for 2025-20262025- 2026 only an amount estimated at $283,400,000.00,$100,000,000.00 for grants to districts and intermediate districts for infrastructure needs as described in this section.

(3) TheIf departmentthe shallamount prioritizeallocated applicationsunder subsection (1) is insufficient to fully fund awards under this section, there is appropriated from districtsthe school consolidation and intermediateinfrastructure districtsfund thatdescribed hadin federalsection funding11x reimbursementthe foramount infrastructurenecessary projectsto rejectedfully duringfund these awards, or the 2024-maximum 2025available schoolin year.the fund, whichever is less.

FundsThe forstate grantsbudget awardeddirector undershall thisprovide subsectionnotification mayto bethe retainedhouse byand thesenate districtappropriations orsubcommittees intermediateon districtschool toaid payand coststhe thathouse otherwiseand wouldsenate havefiscal beenagencies reimbursedregarding withany federaladditional funding.appropriation described in this subsection.

(4) AfterThe funding has been distributed to applicants described in subsection (3), the department shall prioritize applications from districts and intermediate districts that meet any of the following criteria:

CRM S01533'25 (S-3) CR-1 mposkv 1 (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, CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 to issue bonds for infrastructure needs.

(6) AThe districtfunds orallocated intermediateunder districtthis thatsection receivesfor a2025-2026 grantare undera subsectionwork (3)project isappropriation, eligibleand toany applyunexpended funds for a2025-2026 grantare undercarried subsectionforward (4).into 2026-2027.

A district or intermediate district's receipt of a grant under subsection (3) must not be taken into consideration when evaluating an application by that district or intermediate district under subsection (4).

(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.

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

12f.

(1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only $20,000,000.00 for grants to districts to provide educator housing as described in this section, and from the general fund money appropriated in section 11, there is allocated for 2025-2026 only $150,000.00 to the department for administration costs related to the program described in this section.

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

The department must collaborate with the Michigan state housing development authority CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 to determine grant awards to districts.

(3) Districts shall utilize funding received under this section to support projects to provide affordable housing or fund access to affordable housing for employees with annual salaries that do not exceed the area median income.

Grants for affordable housing projects may be used for acquisition, development, engineering and design, construction, and other approved activity that supports an affordable housing project.

A district may partner with housing organizations, developers, management companies, or other approved entities to acquire or develop property under this section, and shall commit to the department that the district will maintain property for affordable housing dedicated to school district employees.

(4) The department shall monitor the implementation of funds awarded under this section and publish a report to the house and senate appropriations subcommittees on school aid, the state budget director, and the house and senate fiscal agencies on the status of funds awarded by not later than September 1, 2026.

(5) 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 provide affordable housing for educators in districts and intermediate districts with an educator shortage.

The estimated completion date of the work project is September 30, 2030.

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

Sec.

(1) If a district or intermediate district fails to receive its proper apportionment, the department, upon satisfactory CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 proof that the district or intermediate district was entitled justly, shall apportion the deficiency 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 the adjustment is finalized.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.

(4) If the department makes an adjustment under this section CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 funds under this article.

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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.

CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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:

CRM S01533'25 (S-3) CR-1 mposkv 1 (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, CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

InIt is the intent of the legislature that, in any fiscal year that the target foundation allowance in section 20 is increased, a district must use ana amountportion equalof tothe atincrease leastto themake productpermanent ofincreases halfto the per-pupilcompensation foundationof allowanceeducators increase and thestaff pupilwithin count for the districtdistrict, towith makepriority permanentgiven increases to theincreasing compensationstarting ofCRM educatorsS01533'25 within(S-3) theCR-1 district.mposkv 1 salaries.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 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, and within 30 days of any changes in employment or assignment status, 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.

, including, but not limited to, information concerning vacancy start and end dates and reasons for vacancies and vacancy terminations.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 by not later than the 2024-2025 fiscal year.

Sec.

(1) For 2024-2025, the target foundation allowance is $9,608.00.For 2025-2026, the target foundation allowance is $10,008.00.$10,050.00.

(2) The department shall calculate the amount of each CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 district's foundation allowance as provided in this section, using a target foundation allowance in the amount specified in subsection (1).

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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).

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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).

Except as otherwise provided in this subsection, for a district described in CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

80%$10,050.00. of the target foundation allowance specified in subsection (1).

(7) For pupils in membership, other than special education CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 section 12b of the revised school code, MCL 380.12b, that is located within the same geographic area as the community district.

(11) To assist the legislature in determining the target CRM S01533'25 (S-3) CR-1 mposkv 1 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, CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 and an index as follows:

If a consensus revenue factor is not determined at the revenue estimating conference, the principals of CRM S01533'25 (S-3) CR-1 mposkv 1 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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (c) The index is calculated by multiplying the pupil membership factor by the revenue adjustment factor.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 revised school code, MCL 380.12.

(e) "Local portion of the district's foundation allowance" CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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).

(i) "Receiving district" means a district to which all or part of the territory of a dissolved district is attached under section CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 code, MCL 380.1211.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

A primary district shall not offer a virtual course to an CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 for more than 15 7 days in a school year without the consent of the pupil's parent or legal guardian.

A primary district that is also a provider shall determine whether or not it has the CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 requirements beyond those specified in this subsection that would prohibit a pupil from taking a virtual course.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 in the academic term, semester, trimester, or summer preceding the enrollment.

(b) Assign to each pupil a teacher of record and provide the CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 community college.

(10) For a pupil enrolled in 1 or more virtual courses, the CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 6.67% of the target foundation allowance for the current fiscal year as calculated under section 20.

(14) Subject to the requirements in this subsection, a CRM S01533'25 (S-3) CR-1 mposkv 1 district may provide instruction under this section for not more than 15 7 days in a school year.

If a district plans to provide instruction under this section to pupils for not more than 15 7 days during a school year, the district's plan must be approved by CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 the board of the district and the district must provide notice of the plan to impacted pupils and their parents or legal guardians before enactment of the plan.

(14) (15) As used in this section:

CRM S01533'25 (S-3) CR-1 mposkv 1 (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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 by the department.

CRM S01533'25 (S-3) CR-1 mposkv 1 (iii) The virtual course required assessments.

(v) Expectations for actual instructor or teacher of record contact time with the virtual learning pupil and other CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 communications between a pupil and the instructor or teacher of record.

(1) From the state school aid pupil support reserve fund money appropriated in section 11, there is allocated $6,137,400.00 for 2024-2025 2025-2026 for assisting districts assigned by the superintendent to participate in a partnership and districts that are required to submit a deficit elimination plan or CRM S01533'25 (S-3) CR-1 mposkv 1 an enhanced deficit elimination plan under section 1220 of the revised school code, MCL 380.1220, and are located in a city with a population between 8,000 and 10,000 as determined by the department, that is in a county with a population between 150,000 and 160,000, as CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 determined by the department, district agreement to improve student achievement and district financial stability.

TheIt superintendentis shallthe identifyintent anyof conditionsthe legislature that maythe beappropriation contributingin tothis lowsection academicwill performancebe withinfunded awith districtstate beingschool consideredaid forpupil assignmentsupport toreserve afund partnership.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.

(a) For a partnership district under this section, within Within 90 days of assignment to the partnership district agreement described in this section, and for a district described in subsection (1) that is not a partnership district under this section, complete a comprehensive needs assessment or evaluation in collaboration with an intermediate district, community members, CRM S01533'25 (S-3) CR-1 mposkv 1 education organizations, and postsecondary institutions, as applicable, that is approved by the superintendent.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (ii) A review of the district and school building leadership and educator capacity to substantially improve student outcomes.

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

CRM S01533'25 (S-3) CR-1 mposkv 1 (c) (d) 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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (3) Upon approval of the academic and financial operating or intervention 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.

Funds may be used for professional development for teachers or district or school leadership, increased instructional CRM S01533'25 (S-3) CR-1 mposkv 1 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.

(5) From the funds allocated under subsection (1), there is CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 allocated for 2024-2025 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 purpose of the work project is to provide assistance to CRM S01533'25 (S-3) CR-1 mposkv 1 districts eligible for funding under this section.

(1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $4,144,000,000.00 for 2023-2024 and there is allocated an amount not to exceed $3,993,000,000.00 $3,937,000,000.00$3,927,000,000.00 for 2024- CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 2025 and there is allocated an amount not to exceed $3,803,000,000.00$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.

(a) Except as otherwise provided in this subsection, the state CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 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).

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 district under tax increment financing acts.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (6) Payments under this section are subject to section 25g.

(b) "Certified mills" means the lesser of 18 mills or the CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 number of mills of school operating taxes levied by the district in 1993-94.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 380.1211, as certified by the department of treasury for the 1994 tax year.

(j) "Qualifying public school academy" means a public school CRM S01533'25 (S-3) CR-1 mposkv 1 academy that was in operation in the 1994-95 school year and is in operation in the current fiscal year.

(l) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 380.1211, and retained for school operating purposes as defined in section 20.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

(1) Except as otherwise provided in this section, for discretionary nonmandated payments to districts under this section, there is allocated for 2023-2024 an amount not to exceed $6,219,000,000.00 from the state school aid fund and general fund appropriations in section 11 and an amount not to exceed $72,000,000.00 from the community district education trust fund appropriation in section 11, and there is allocated for 2024-2025 an amount not to exceed $6,213,000,000.00 $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, .

For 2023-2024, $33,700,000.00 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 $72,000,000.00, as required under section 12 of the CRM S01533'25 (S-3) CR-1 mposkv 1 Michigan trust fund act, 2000 PA 489, MCL 12.262.

and there is allocated for 2025-2025-2026 2026 an amount not to exceed $6,587,000,000.00$6,696,500,000.00 from the state school aid fund and general fund appropriations in section 11.

ForIn 2024-2025,addition, thethere amountis necessary,allocated estimatedfor at2025-2026 $70,200,000.00only $77,200,000.00,an mustamount benot depositedto fromexceed the$124,000,000.00 generalfrom fund into the state school aid fund toappropriation reimburse the state school aid fund for community district education trust fund costs in excess of CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 $41,000,000.00, as required under section 1211. of the Michigan trust fund act, 2000 PA 489, MCL 12.262.

IfFor 2024-2025, the amount allocatednecessary, underestimated thisat subsection$70,200,000.00 from$77,700,000.00, themust communitybe districtdeposited educationfrom trustthe general fund appropriationinto underthe sectionstate 11school isaid insufficientfund to payreimburse forthe anstate increaseschool underaid thisfund section,for anycommunity amountdistrict exceedingeducation thattrust allocationfund maycosts bein paidexcess fromof other$41,000,000.00, allocationsas required under thissection subsection.12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262.

If 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.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 this increase must be paid from the community district education trust fund allocation in subsection (1) 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).20(4), and, for 2024-2025 only, this increase must be paid from the community district education trust fund allocation in subsection (1).

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).

(a) Comply with section 1280b of the revised school code, MCL CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 380.1280b.

(g) Comply with section 18d.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 section.

(8) If the local claims review board or a court of competent CRM S01533'25 (S-3) CR-1 mposkv 1 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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 an expedited review of the claim by the local claims review board.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 a maximum of 50% of the amount allocated in subsection (1).

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (12) As used in this section:

22c.

From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $3,000,000.00 for payments to eligible districts as provided under this section.

The payment for an eligible district under this section must be in an amount per membership pupil equal to $171.00.

As used in this section:

(a) "Eligible district" means a district that received payments under this section in the immediately preceding fiscal year and for which the local school operating revenue per membership pupil in the current school fiscal year exceeds the district's foundation allowance as calculated under section 20 for the current fiscal year.

(b) "Local school operating revenue" means that term as defined in section 22b.

(c) "Local school operating revenue per membership pupil" CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 means a district's local school operating revenue divided by the district's membership excluding special education pupils.

Sec.

(1) From the state school aid fund money appropriated under section 11, an amount not to exceed $12,306,900.00 $12,823,800.00$12,873,100.00 is allocated for 2024-2025 2025-2026 CRM S01533'25 (S-3) CR-1 mposkv 1 for supplemental payments to rural districts under this section.

(2) From the allocation under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $3,734,400.00 $3,891,200.00$3,906,200.00 for payments under this subsection to eligible districts.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 needs.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 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 2024-2025 2025-2026 an amount not to exceed $8,042,100.00 $8,379,900.00$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.

(a) An amount equal to $6,093,400.00 $6,349,300.00$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.

(iii) For districts that have greater than 250 square miles, have at least 10.0 pupils per square mile, and do not receive CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 subdivision, the department shall prorate payments to districts under subdivision (b) on an equal per-pupil basis.

(6) Subject to subsection (7), from the allocation under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $530,400.00 $552,700.00$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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (5) Money available in the school transportation fund must not be expended without a specific appropriation.

(6) For the fiscal year ending September 30, 2023 2026 only, $350,000,000.00 $11,000,000.00$130,000,000.00 from the state school aid fund must be deposited into the school transportation fund.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

The department shall provide this report not later than March 1 of each fiscal year for which funding is allocated under CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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 CRM S01533'25 (S-3) CR-1 mposkv 1 department.

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.

(5) Notwithstanding section 17b, the department shall make CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 payments under this section on a schedule determined by the center.

(6) To receive funding under this section, a regional data hub CRM S01533'25 (S-3) CR-1 mposkv 1 must have a governance model that ensures local control of data, data security, and student privacy issues.

(f) Utilizing the infrastructure to promote the actionable use of data through common reports and dashboards that are consistent CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 statewide.

(g) Creating a governance model to facilitate sustainable CRM S01533'25 (S-3) CR-1 mposkv 1 operations of the infrastructure in the future, including administration, legal agreements, documentation, staffing, hosting, and funding.

(a) Measurable academic outcomes 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 academic outcomes benchmarks under this subdivision must include all of the following:

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (i) Outcomes that put pupils Pupils on track to meet or exceed grade level proficiencyproficiency, and that are based on with consideration CRM S01533'25 (S-3) CR-1 mposkv 1 for district or public school academy needs identified as required under section 21h.

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

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

(iii) Outcomes that are intended to measure improved Improved high school graduation rates, as applicable.

(iv) Outcomes that measure attendance Attendance rates.

(b) Accountability measures to be imposed if the district or public school academy does not achieve the measurable academic outcomes 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.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (d) For a district assigned as a partnership district as CRM S01533'25 (S-3) CR-1 mposkv 1 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:

(iii) The reconstitution plan for the school must require the adoption of goals similar to the goals measurable academicbenchmarks outcomes included in the partnership district agreement, with a limit of 3 years to achieve the goals.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 described in subsection (1) in place.

CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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, CRM S01533'25 (S-3) CR-1 mposkv 1 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.

(2) The department shall allocate the total amount allocated CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 department that is located on property adjacent to a juvenile detention facility or child caring institution.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 intermediate district's boundaries.

(1) From the state school aid fund money CRM S01533'25 (S-3) CR-1 mposkv 1 appropriated in section 11, there is allocated an amount not to exceed $1,600,000.00 for 2024-2025 2025-2026 for payments to strict discipline academies and qualified districts, as provided under this section.

However, the CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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).

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 Sec.

(1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $3,050,000.00 $3,000,000.00$1,250,000.00 for 2024-2025 2025-2026 for the purposes of this section.

It is the intent of the CRM S01533'25 (S-3) CR-1 mposkv 1 legislature that, for 2025-2026, 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.

The CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

(1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $5,284,000.00 $5,549,000.00 for 2024-2025 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 CRM S01533'25 (S-3) CR-1 mposkv 1 451, MCL 324.2154.

(2) Funds allocated to the promise zone fund under this section must be used solely for payments to eligible districts and CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 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.

All of the following apply to the promise CRM S01533'25 (S-3) CR-1 mposkv 1 zone fund:

(1) From the state school aid fund money CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 appropriated under section 11, there is allocated an amount not to exceed $14,400,000.00 for 2024-2025 2025-2026 for reimbursements to intermediate districts as required under section 15b of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2665b.

(4) Notwithstanding section 17b, the department of treasury shall make payments under this section on a schedule determined by CRM S01533'25 (S-3) CR-1 mposkv 1 the department of treasury.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (b) For general fund money, into the educator fellowship private provider fund in section 27e.

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 CRM S01533'25 (S-3) CR-1 mposkv 1 enrolled in an alternative certification program, as defined by the department;

(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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 complete the work requirement described in subsection (7).

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 due to a medical or other emergency, as determined by the department of lifelong education, advancement, and potential.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 (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.

(5) Awards under this section must be distributed to eligible educator preparation programs on behalf of an eligible recipient on CRM S01533'25 (S-3) CR-1 mposkv 1 a timeline determined by the department of lifelong education, advancement, and potential.

(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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 in this state.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 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.

(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 CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 educator fellowship private provider fund in section 27e, as applicable, the amount necessary to fully fund these programs.

(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 CRM S01533'25 (S-3) CR-1 mposkv 1 senate appropriations subcommittee on pre-K to 12 by February 1 15 of the current fiscal year.

CRM S01533'25 (S-3)_SB166_APS_1 qunr1d 1 Sec.

27b.

(1) From the state school aid fund money appropriated in section 11, there is allocated for 2022-2023 2025- 2026 only an amount not to exceed $20,000,000.00 and from the federal funding appropriated under section 11, there is allocated for 2022-2023 only an amount not to exceed $155,000,000.00 from the federal funding awarded to this state from the coronavirus state fiscal recovery fund under the American rescue plan act of 2021, title IX, subtitle M of Public Law 117-2, $70,000,000.00 to districts, and intermediate districts, and consortia of intermediate districts for a grow your own program programs and educator development programs as described in subsection (2).this section and subject to subsection (5).

(2) Districts and intermediate districts receiving funding CRM S01533'25 (S-3) CR-1 mposkv 1 under this section shall use the funding to implement a grow your own program.

A grow your own program described in this subsection 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 include, but are not limited to:

(a) Tuition and fees for attendance at a state-approved education preparation provider for an accelerated degree, for a traditional bachelor's degree for current staff 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 through 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.

(2) (3) The department shall establish a competitive grant process to distribute funds under this section.

A district, or intermediate school 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 CRM S01533'25 (S-3) CR-1 mposkv 1 subsection, a district, or intermediate district, or consortium of intermediate districts must submit the following information and assurances:

(a) Demonstrated need for funding in the district, or 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 grow your own program described in this section.

(c) For funds for the purposes described in subsection (2)(f), a description of the program being implemented and the number of students the program is intended to reach.

(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) (d) Assurances that the pathway 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.

(e) Identification of eligible recipients and a pledge to hire an eligible recipient as a full-time teacher upon their receipt of an initial teaching certificate and provide for student teaching CRM S01533'25 (S-3) CR-1 mposkv 1 opportunities.

(f) A pledge that, before providing funding under this section to an eligible recipient, the district or intermediate district will require that the eligible recipient pledge to serve as a full- time teacher at the district or intermediate district for at least the same number of years as the recipient participated in a grow your own program.

If the district or intermediate district is unable to hire an eligible recipient as required under subdivision (e), the eligible recipient may serve the years the recipient pledged to serve under this subdivision at another district, intermediate district, or nonpublic school.

(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.

CRM S01533'25 (S-3) CR-1 mposkv 1 (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:

CRM S01533'25 (S-3) CR-1 mposkv 1 (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.