SB 860 — Appropriations: school aid omnibus; fiscal year 2026-2027 appropriations for K-12 school aid, higher education, and community colleges; provide for. Amends secs. 11, 201 & 236 of 1979 PA 94 (MCL 388.1611 et seq.). TIE BAR WITH: SB 0903'26

SB-860, As Passed Senate, April 30, 2026 SUBSTITUTE FOR SENATE BILL NO.

860 A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 11aa, 12d, 12e, 15, 18, 18a, 19, 20, 20d, 21b, 21f, 21h, 22a, 22b, 22d, 22k, 22l, 22m, 24, 24a, 25f, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27j, 27l, 27m, 28, 30d, 31a, 31c, 31d, 31f, 31n, 31aa, 32d, 32n, 32t, 35a, 35e, 35m, 39, 39a, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 56, 61a, 61b, 62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 98, 99, 99h, 101, 104, 104h, 107, 147, 147a, 147b, 147c, 147e, 152a, 152b, 163, 164l, 201, 201f, 201i, 206, 207c, 212, 216e, 217a, 217b, 223, 229a, 230, 236, 236c, 236d, 236j, 236s, 241, 241a, 241b, 241c, 241e, 247, 248, 254, 256, 263, 263b, 264, 268, 269, 270, 270c, 276, 277, 278, 279, 280, 281, and 282 (MCL 388.1603, 388.1606, 388.1611, 388.1611a, CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1611x, 388.1611aa, 388.1612d, 388.1612e, 388.1615, 388.1618, 388.1618a, 388.1619, 388.1620, 388.1620d, 388.1621b, 388.1621f, 388.1621h, 388.1622a, 388.1622b, 388.1622d, 388.1622k, 388.1622l, 388.1622m, 388.1624, 388.1624a, 388.1625f, 388.1626a, 388.1626b, 388.1626c, 388.1626d, 388.1627a, 388.1627b, 388.1627c, 388.1627j, 388.1627l, 388.1627m, 388.1628, 388.1630d, 388.1631a, 388.1631c, 388.1631d, 388.1631f, 388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632t, 388.1635a, 388.1635e, 388.1635m, 388.1639, 388.1639a, 388.1651a, 388.1651c, 388.1651d, 388.1651e, 388.1651g, 388.1653a, 388.1654, 388.1654d, 388.1656, 388.1661a, 388.1661b, 388.1662, 388.1665, 388.1667, 388.1667f, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1694e, 388.1698, 388.1699, 388.1699h, 388.1701, 388.1704, 388.1704h, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c, 388.1747e, 388.1752a, 388.1752b, 388.1763, 388.1764l, 388.1801, 388.1801f, 388.1801i, 388.1806, 388.1807c, 388.1812, 388.1816e, 388.1817a, 388.1817b, 388.1823, 388.1829a, 388.1830, 388.1836, 388.1836c, 388.1836d, 388.1836j, 388.1836s, 388.1841, 388.1841a, 388.1841b, 388.1841c, 388.1841e, 388.1847, 388.1848, 388.1854, 388.1856, 388.1863, 388.1863b, 388.1864, 388.1868, 388.1869, 388.1870, 388.1870c, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, and 388.1882), sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 15, 18, 19, 20, 20d, 21f, 21h, 22a, 22b, 22d, 22k, 22l, 24, 24a, 25f, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27l, 28, 30d, 31a, 31d, 31f, 31n, 31aa, 32d, 32n, 32t, 35a, 35m, 39, 39a, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 56, 61a, 61b, 62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 98, 99, 99h, 101, 104, 104h, 107, 147, 147a, 147c, 147e, 152a, 152b, 201, 201f, 206, 207c, 212, 216e, 217a, 217b, 229a, 230, 236, 236c, 236d, 236j, 241, 241a, 241b, 241c, 241e, 247, CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 248, 254, 256, 263, 263b, 264, 268, 269, 270, 270c, 276, 277, 278, 279, 280, 281, and 282 as amended and sections 12e, 31c, 35e, 164l, 201i, and 236s as added by 2025 PA 15, sections 11aa and 27m as added and section 147b as amended by 2023 PA 103, section 18a as amended by 2020 PA 165, section 21b as amended by 2022 PA 144, and sections 27j, 163, and 223 as amended by 2024 PA 120, and by adding sections 23h, 32p, 35o, 35p, 35q, 51i, 54b, 98d, 99o, 99s, 152c, 217d, 217e, 217g, 236k, 275l, 275n, 275o, and 287;

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (7) "District" means, except as otherwise specifically provided in this act, a local school district established under the revised school code or, except in sections 6(4), 6(6), 11x, 11y, 11aa, 12c, 13, 20, 22a, 22p, 31a, 51a(14), 105, 105c, and 166b, a public school academy.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 Unless otherwise approved by the department, a center program either serves all constituent districts within an intermediate district or serves several districts with less than 50% of the pupils residing in the operating district.

(4) "Membership", except as otherwise provided in this article, means for a district, a public school academy, or an intermediate district the sum of the product of .90 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or intermediate district on the pupil membership count day for the current school year, plus the product of .10 times the final audited count from the supplemental count day of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 intermediate district for the immediately preceding school year.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (c) A special education pupil educated by the intermediate district is counted in membership in the intermediate district.

It is the intent of the legislature that the immediately preceding sentence CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 apply retroactively and is effective July 1, 2021.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (A) Except as otherwise provided in this sub-subparagraph, the pupil and the teacher of record or mentor complete a 2-way interaction for 1 course during the week on which pupil membership count day or supplemental count day, as applicable, occurs, and the 3 consecutive weeks following that week.

(II) "Mentor" means a professional employee of the district who monitors the pupil's progress, ensures the pupil has access to needed technology, is available for assistance, and ensures access CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 to the teacher of record.

(III) Documented completion of a course lesson or lesson CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 activity.

(ii) If operations begin after the pupil membership count day CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 for the fiscal year and not later than the supplemental count day for the fiscal year, membership is the final audited count of the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the supplemental count day for the current school year.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (A) Is enrolled in a public school academy or an alternative education high school diploma program, that is primarily focused on educating pupils with extreme barriers to education, such as being homeless as that term is defined under 42 USC 11302.

(n) If a pupil counted in membership in a public school CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 academy is also educated by a district or intermediate district as part of a cooperative education program, the pupil is counted in membership only in the public school academy unless a written agreement signed by all parties designates the party or parties in which the pupil is counted in membership, and the instructional time scheduled for the pupil in the district or intermediate district is included in the full-time equated membership determination under subdivision (q) and section 101.

(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 CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 remainder of the full-time membership for each of those pupils is allocated to the public school academy.

However, to the extent allowable under federal law, for a district or public school academy that provides evidence satisfactory to the department that it used federal title I money in the 2 immediately preceding school fiscal years to fund full-time kindergarten, full-time equated memberships for pupils in kindergarten are determined by dividing the number of class hours CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 scheduled and provided per year per kindergarten pupil by a number equal to 1/2 the number used for determining full-time equated memberships for pupils in grades 1 to 12.

(u) If, as a result of a disciplinary action, a district determines through the district's alternative or disciplinary education program that the best instructional placement for a pupil is in the pupil's home or otherwise apart from the general school population, if that placement is authorized in writing by the district superintendent and district alternative or disciplinary education supervisor, and if the district provides appropriate CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 instruction as described in this subdivision to the pupil at the pupil's home or otherwise apart from the general school population, the district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours of instruction the district actually provides to the pupil divided by the number of hours required under section 101 for full-time equivalency.

(w) For a public school academy that has been in operation for at least 2 years and that suspended operations for at least 1 semester and is resuming operations, membership is the sum of the CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 product of .90 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the first pupil membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the product of .10 times the final audited count from the most recent pupil membership count day or supplemental count day that occurred before suspending operations, as determined by the superintendent.

If a district has established a community engagement advisory committee in partnership with the department of treasury, is required to submit a deficit elimination plan or an enhanced deficit elimination plan under section 1220 of the revised school code, MCL 380.1220, and is located in a city with a population between 9,000 and 11,000, as determined by the department, that is in a county with a population between 150,000 and 160,000, as determined by the department, the district's membership is considered to be the The membership figure calculated under this CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 subdivision.

(aa) For the first year in which a pupil is counted in membership on the pupil membership count day in a middle college program, the membership is the average of the full-time equated membership on the pupil membership count day and on the supplemental count day for the current school year, as determined CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 by the department.

must not be based on A district may generate more than 1.0 FTE for that a pupil , and CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 any portion of an FTE for that pupil that exceeds 1.0 is instead paid enrolled in a program under section 25g.

(ff) If a public school academy that is not in its first or second year of operation closes at the end of a school year and CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 does not reopen for the next school year, the department shall adjust the membership count of the district or other public school academy in which a former pupil of the closed public school academy enrolls and is in regular daily attendance for the next school year to ensure that the district or other public school academy receives the same amount of membership aid for the pupil as if the pupil were counted in the district or other public school academy on the supplemental count day of the preceding school year.

(i) The pupil would meet the definition of an eligible student under the postsecondary enrollment options act, 1996 PA 160, MCL CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 388.511 to 388.524, if the course were an eligible course under that act.

(kk) A pupil enrolled in a middle college program may be counted for more than a total of 1.0 full-time equated membership for any of the school years in which the pupil is enrolled in the middle college program, but the total full-time equated membership for that pupil for all of the school years in which the pupil is enrolled in high school must not be greater than 5.00 full-time CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 equated membership if the pupil is enrolled in more than the minimum number of instructional days and hours required under section 101 and the pupil is expected to complete the 5-year program with both a high school diploma and at least 60 transferable college credits or is expected to earn an associate's degree in fewer than 5 years.

(A) Five percent of the district's or public school academy's CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 membership for pupils not counted in membership under section 166b.

(e) A pupil who has made an official written complaint or whose parent or legal guardian has made an official written complaint to law enforcement officials and to school officials of the pupil's district of residence that the pupil has been the victim of a criminal sexual assault or other serious assault, if CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 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.

(i) The pupil has been suspended or expelled from the pupil's district of residence for any reason, including, but not limited to, a suspension or expulsion under section 1310, 1311, or 1311a of CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(n) A pupil who enrolls in a district other than the pupil's district of residence as a result of the pupil's school not making adequate yearly progress under the no child left behind act of CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (8) "Pupils in grades K to 12 actually enrolled and in regular daily attendance" means, except as otherwise provided in this section, pupils in grades K to 12 in attendance and receiving instruction in all classes for which they are enrolled on the pupil membership count day or the supplemental count day, as applicable.

Except as otherwise provided in this section, a pupil not counted as 1.0 full-time equated membership due to an absence from a class is CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 counted as a prorated membership for the classes the pupil attended.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (13) "State board" means the state board of education.

(19) "Textbook" means a book, electronic book, or other instructional print or electronic resource that is selected and approved by the governing board of a district and that contains a presentation of principles of a subject, or that is a literary work relevant to the study of a subject required for the use of CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 classroom pupils, or another type of course material that forms the basis of classroom instruction.

(D) For 2030-2031, the weighted pupil membership under this CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 subparagraph must be increased to 0.3565.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (A) For 2027-2028, the weighted pupil membership under this subparagraph must be increased to 0.1636.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (iii) For a full-time equivalent English language learner who was assessed in the immediately preceding fiscal year under the WIDA ACCESS for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score between 3.0 and 4.7, as applicable to each assessment, an increase of 0.0224.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (L) For 2038-2039, the weighted pupil membership under this subparagraph must be increased to 0.3101.

As used in this sub-subparagraph, "identified student percentage" means the CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 quotient of the number of pupils in an eligible district who are determined to be economically disadvantaged, as reported to the center in a form and manner prescribed by the center not later than the fifth Wednesday after the pupil membership count day in the fiscal year preceding the first fiscal year in which the eligible district is in the community eligibility program, divided by the total number of pupils counted in an eligible district on the pupil membership count day in the fiscal year preceding the first fiscal year in which the eligible district is in the community eligibility program.

(D) If, for a particular fiscal year, the number of membership pupils in a district who are determined under sub-subparagraph (A) to be economically disadvantaged or to be eligible based on the identified student percentage varies by more than 20 percentage points from the number of those pupils in the district as calculated under sub-subparagraph (A) for the immediately preceding fiscal year caused by an egregious reporting error by the district, the department may choose to have the calculations under sub- subparagraph (A) instead be made using the number of membership pupils in the district who are determined to be economically disadvantaged, as reported to the center in the form and manner prescribed by the center not later than the fifth Wednesday after CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 the supplemental count day of the immediately preceding fiscal year.

CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 (III) For 2029-2030, a district assigned to band 1 must receive an additional weighted pupil membership of at least 0.2316 and not more than 0.2383 for each economically disadvantaged pupil.

(XII) For 2038-2039, a district assigned to band 1 must receive an additional weighted pupil membership of at least 0.3283 CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 and not more than 0.3377 for each economically disadvantaged pupil.

(III) For 2029-2030, a district assigned to band 2 must receive an additional weighted pupil membership of at least 0.2383 CRM S06118'26 (S-1)(S-1)_SB860_APS_1 sg57apafpb1q 1 and not more than 0.2482 for each economically disadvantaged pupil.