HOUSE BILL NO. 5431

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 11, 11s, 33, 201, and 236 (MCL 388.1611, 388.1611s, 388.1633, 388.1801, and 388.1836), as amended by 2025 PA 15, and by adding sections 27g, 97h, 201j, 201k, and 236t.

the people of the state of michigan enact:

Sec. 11. (1) For the fiscal year ending September 30, 2025, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $17,936,546,300.00 from the state school aid fund, the sum of $78,830,600.00 from the general fund, an amount not to exceed $41,000,000.00 from the community district education trust fund created under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not to exceed $125,000,000.00 from the school transportation fund created under section 22k, an amount not to exceed $71,000,000.00 from the enrollment stabilization fund created under section 29, an amount not to exceed $30,000,000.00 from the school meals reserve fund created under section 30e, an amount not to exceed $18,000,000.00 from the great start readiness program reserve fund created under section 32e, an amount not to exceed $481,400,000.00 from the MPSERS retirement obligation reform reserve fund created under section 147b, and an amount not to exceed $30,000,000.00 from the educator fellowship public provider fund created in section 27d. For the fiscal year ending September 30, 2026, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $18,366,334,700.00 $18,387,334,700.00 from the state school aid fund, the sum of $73,151,100.00 $74,931,100.00 from the general fund, an amount not to exceed $100,000,000.00 from the school consolidation and infrastructure fund created under section 11x, an amount not to exceed $125,000,000.00 from the school transportation fund created under section 22k, an amount not to exceed $71,000,000.00 from the enrollment stabilization fund created under section 29, an amount not to exceed $18,000,000.00 from the great start readiness program reserve fund created under section 32e, an amount not to exceed $30,000,000.00 from the educator fellowship public provider fund created under section 27d, an amount not to exceed $97,037,400.00 from the state school aid pupil support reserve fund created under section 22r, and an amount not to exceed $600,000.00 from the general pupil support reserve fund created under section 22s. In addition, all available federal funds are only appropriated as allocated in this article for the fiscal years year ending September 30, 2025 and September 30, 2026.

(2) The appropriations under this section are allocated as provided in this article. Money appropriated under this section from the general fund must be expended to fund the purposes of this article before the expenditure of money appropriated under this section from the state school aid fund.

(3) Any general fund allocations under this article that are not expended by the end of the fiscal year are transferred to the school aid stabilization fund created under section 11a.

Sec. 11s. (1) From the state school aid fund money appropriated in section 11, there is allocated $5,000,000.00 $10,000,000.00 for 2025-2026 only and from the general fund money appropriated in section 11, there is allocated $3,000,000.00 $4,780,000.00 for 2025-2026 only for the purpose of providing services and programs to children who reside within the boundaries of a district with the majority of its territory located within the boundaries of a city for which an executive proclamation of emergency concerning drinking water is issued in the current or immediately preceding 10 fiscal years under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, and that has at least 4,500 pupils in membership for the 2016-2017 fiscal year or has at least 2,600 pupils in membership for a fiscal year after 2016-2017.

(2) From the general fund money allocated in subsection (1), there is allocated to a district with the majority of its territory located within the boundaries of a city for which an executive proclamation of emergency concerning drinking water is issued in the current or immediately preceding 10 fiscal years under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, and that has at least 4,500 pupils in membership for the 2016-2017 fiscal year or has at least 2,600 pupils in membership for a fiscal year after 2016-2017, an amount not to exceed $2,425,000.00 $4,205,000.00 for 2025-2026 for the purpose of employing school nurses, classroom aides, school social workers, and community health workers; for the provision of behavioral or mental health supports, parental engagement activities, community coordination activities, and other support services; and for purchasing program supplies. The district shall provide a report to the department in a form, manner, and frequency prescribed by the department. The department shall provide a copy of that report to the governor, the house and senate school aid subcommittees, the house and senate fiscal agencies, and the state budget director within 5 days after receipt. The report must provide at least the following information:

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

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

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

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

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

(4) For 2025-2026 only, from the state school aid fund money allocated in subsection (1), there is allocated an amount not to exceed $5,000,000.00 $10,000,000.00 to an intermediate district that has a constituent district described in subsection (2) for interventions and supports for students in grades K to 12 who were impacted by an executive proclamation of emergency described in subsection (1) concerning drinking water. Funds under this subsection must be used for behavioral supports, social workers, counselors, psychologists, nursing services, including, but not limited to, vision and hearing services, transportation services, parental engagement, community coordination, and other support services.

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

(6) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to provide services to children who reside in a district affected by an executive proclamation of emergency concerning drinking water. The estimated completion date of the work project is September 30, 2030.

Sec. 27g. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $12,500,000.00 to intermediate districts and consortia of intermediate districts based on the number of pupils in membership in constituent districts of the intermediate district or consortium of intermediate districts to support educator talent initiatives and programs.

(2) Intermediate districts and consortia of intermediate districts shall use the money received under this section to partner with 1 eligible nonprofit to provide funding, programs, and technical assistance for the following purposes:

(a) Provide teacher recruitment, teacher retention, and teacher development to ensure greater efficacy, satisfaction, and outcomes.

(b) Improve teacher certification programs to increase quality and retention, and to foster close relationships with schools.

(c) Provide school leader development programs to increase educator retention and efficacy.

(d) Serve as a convener and hub for innovation and conversation to support collaboration and coordination among this state's educator talent efforts.

(e) Promote research so that this state can learn from its investments and innovations and become a top state for educators.

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

(4) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to support educator talent initiatives and programs. The estimated completion date of the work project is September 30, 2030.

(5) As used in this section, "eligible nonprofit" means an entity that meets all of the following criteria, as determined by the department:

(a) Is based in this state.

(b) Operates statewide.

(c) Is an organization that is exempt from taxation under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and the organization is not a higher education organization.

(d) Has formal partnerships with more than 35 intermediate districts in this state.

(e) Has launched a statewide grow your own program in partnership with intermediate districts.

(f) Has staff experienced in implementing research-based programs in all of the following areas:

(i) Teacher recruitment.

(ii) Teacher development.

(iii) Teacher retention.

(iv) Teacher certification.

(v) School leader development.

(vi) School leader retention.

(g) Has staff experienced in designing and developing a department-approved grow your own program.

Sec. 33. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $11,000,000.00 for 2023-2024 only for grants to eligible districts for the purposes described in this section.

(2) To receive a grant under this section, a district must apply for the grant in a form and manner prescribed by the department.

(3) A district that meets both of the following is an eligible district under this section:

(a) The district must enroll students in grades K to 5.

(b) The district must, in its application described in subsection (2), pledge to do all of the following:

(i) Provide for all pupils in grades K to 5 at least 60 minutes per week of instruction in music or visual arts, taught by a certificated teacher who has, or is working towards, the appropriate endorsement issued by the department. For teaching music, the appropriate endorsement is a JX or JQ endorsement. For teaching visual arts, the appropriate endorsement is an LQ, LX, or LZ endorsement.

(ii) Maintain staffing that includes at least 1 certificated teacher with a JX or JQ music endorsement or an LQ, LX, or LZ visual arts endorsement issued by the department for every 400 pupils enrolled in grades K to 5.

(iii) Adopt and implement, or maintain, specific curricula for music or visual arts.

(iv) Maintain in each elementary school at least 1 space that is either dedicated to music or visual arts instruction or designated to be used for music or visual arts instruction and that allows for effective implementation of the music or visual arts curriculum, with consideration given to the physical materials and tools needed for music or visual arts instruction.

(v) Establish and maintain a separate dedicated budget for music or visual arts instruction in grades K to 5.

(vi) Participate in the collection of data in the fall and spring of the 2024-2025 school year on changes in course offerings, instructor qualifications, student course enrollments, and other aspects of the district's music or visual arts programs as determined by the department and MI Creative Potential.

(vii) Commit to including music and visual arts in district and school continuous improvement planning using the program review tool that accompanies the Michigan Blueprint of a Quality Arts Education, available in the Michigan Integrated Continuous Improvement Process database.

(viii) Adopt and implement a plan to satisfy the recommendations listed in the Michigan Blueprint of a Quality Arts Education program.

(4) Grants awarded under this section must be awarded for the coverage of costs for 1 year of additional costs, including 1-time costs, for the district to implement or maintain a music or visual arts program.

(5) In awarding grants under this section, the department shall prioritize as follows:

(a) The department shall first award grants to districts that are first-time applicants and meet 1 of the following:

(i) The district currently has a music or visual arts program that meets the requirements of subsection (3)(b)(i) to (vii) but does not meet the recommendations listed in the Michigan Blueprint of a Quality Arts Education program and the district will use the grant to move toward implementing those recommendations.

(ii) The district does not currently have a music program that meets the requirements of subsection (3)(b)(i) to (vii) or does not currently have a visual arts program that meets the requirements of subsection (3)(b)(i) to (vii).

(b) If there is funding remaining after awarding grants to districts described in subdivision (a), the department shall award grants to other eligible districts.

(6) All grants under this section must be awarded by not later than February 1 of the fiscal year in which the grant is approved.

(7) If the total funding allocated under this section is insufficient to fully fund payments to all eligible districts under this section, the department shall prorate payments to all eligible districts on an equal percentage basis.

(8) Subject to the provisions of subsection (9), in addition to the funds appropriated in section 11, from the state school aid fund, there is appropriated and allocated an amount not to exceed In addition to the funds allocated in subsection (1), from the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 an amount not to exceed $2,500,000.00 to Eaton Regional Education Service Agency to serve as the fiscal agent for the Michigan Assessment Consortium to be used in implementing MI Creative Potential, as led by the Michigan Arts Education Instruction and Assessment Project, developed by the Michigan Assessment Consortium, in partnership with the Michigan Department of Education, Michigan Arts and Culture Council, and Michigan educators. The Michigan Assessment Consortium shall implement MI Creative Potential by acquiring and implementing the artlook platform, by building school and community partnerships to allow districts to publicize their need for supplemental arts instruction, by providing professional learning on artlook tools, and by collecting and uploading data on availability of arts education within districts in each prosperity region each school year. The data collected and uploaded must include, but is not limited to, how many arts classes are offered, the duration and frequency of instruction in the disciplines, educator and staffing details, the arts budget in each building, arts-related extracurricular activities that are offered, and community partners that are engaged. Eaton Regional Education Service Agency shall provide a report to the department each September on the progress of this work.

(9) The appropriation and allocation under subsection (8) is contingent on the effective issuance of a directive by the budget director, pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.451a, to lapse $2,500,000.00 in remaining funding from a work project that was established under this section in 2023-2024. The amount allocated under subsection (8) may not exceed the amount lapsed from the work project referenced in the immediately preceding sentence.

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

(10) (11) The funds allocated under this section for 2023-2024 are a work project appropriation, and any unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to provide for music or visual arts education. The estimated completion date of the work project is September 30, 2027.

(11) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to continue implementation of MI Creative Potential. The estimated completion date of the work project is September 30, 2030.

Sec. 97h. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $1,000,000.00 for 2025-2026 only to an intermediate district to partner with the department to create or partner with an existing program and support a tip line for students to anonymously report improperly stored firearms that are accessible to a minor.

(2) The department shall develop educational materials related to improperly stored firearms and how to report improperly stored firearms, and distribute the educational materials to districts and intermediate districts.

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

(4) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to support a tip line for students to anonymously report improperly stored firearms that are accessible to a minor. The estimated completion date of the work project is September 30, 2030.

(5) As used in this section, "improperly stored firearm" means a firearm that is not stored in accordance with the requirements of section 9 of 1927 PA 372, MCL 28.429.

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for community colleges for the fiscal year ending September 30, 2026, from the funds indicated in this section. The following is a summary of the appropriations in this section and section 201f:

(a) The gross appropriation is $493,032,100.00. $494,432,100.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $493,032,100.00.$494,432,100.00.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $493,032,100.00.$494,182,100.00.

(v) State general fund/general purpose money, $0.00.$250,000.00.

(2) Subject to subsection (3), the amount appropriated for community college operations is $363,570,600.00, allocated as follows:

(a) The appropriation for Alpena Community College is $6,416,800.00, $6,403,300.00 for operations, $0.00 for performance funding, and $13,500.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Bay de Noc Community College is $6,390,000.00, $6,298,000.00 for operations, $0.00 for performance funding, and $92,000.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Delta College is $16,934,200.00, $16,882,400.00 for operations, $0.00 for performance funding, and $51,800.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Glen Oaks Community College is $2,987,000.00, $2,984,100.00 for operations, $0.00 for performance funding, and $2,900.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Gogebic Community College is $5,439,100.00, $5,399,000.00 for operations, $0.00 for performance funding, and $40,100.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Grand Rapids Community College is $21,337,300.00, $21,184,200.00 for operations, $0.00 for performance funding, and $153,100.00 for costs incurred under the North American Indian tuition waiver.

(g) The appropriation for Henry Ford College is $25,305,200.00, $25,300,700.00 for operations, $0.00 for performance funding, and $4,500.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Jackson College is $14,059,700.00, $14,032,600.00 for operations, $0.00 for performance funding, and $27,100.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Kalamazoo Valley Community College is $14,751,300.00, $14,704,400.00 for operations, $0.00 for performance funding, and $46,900.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Kellogg Community College is $11,453,400.00, $11,426,700.00 for operations, $0.00 for performance funding, and $26,700.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for Kirtland Community College is $3,881,400.00, $3,835,100.00 for operations, $0.00 for performance funding, and $46,300.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for Lake Michigan College is $6,427,600.00, $6,408,200.00 for operations, $0.00 for performance funding, and $19,400.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for Lansing Community College is $36,216,500.00, $36,134,400.00 for operations, $0.00 for performance funding, and $82,100.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Macomb Community College is $38,251,500.00, $38,160,600.00 for operations, $0.00 for performance funding, and $90,900.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Mid Michigan Community College is $5,919,500.00, $5,837,000.00 for operations, $0.00 for performance funding, and $82,500.00 for costs incurred under the North American Indian tuition waiver.

(p) The appropriation for Monroe County Community College is $5,368,900.00, $5,368,500.00 for operations, $0.00 for performance funding, and $400.00 for costs incurred under the North American Indian tuition waiver.

(q) The appropriation for Montcalm Community College is $4,035,000.00, $4,033,300.00 for operations, $0.00 for performance funding, and $1,700.00 for costs incurred under the North American Indian tuition waiver.

(r) The appropriation for C.S. Mott Community College is $18,028,100.00, $18,017,800.00 for operations, $0.00 for performance funding, and $10,300.00 for costs incurred under the North American Indian tuition waiver.

(s) The appropriation for Muskegon Community College is $10,403,400.00, $10,359,900.00 for operations, $0.00 for performance funding, and $43,500.00 for costs incurred under the North American Indian tuition waiver.

(t) The appropriation for North Central Michigan College is $4,110,100.00, $3,947,700.00 for operations, $0.00 for performance funding, and $162,400.00 for costs incurred under the North American Indian tuition waiver.

(u) The appropriation for Northwestern Michigan College is $10,874,500.00, $10,619,800.00 for operations, $0.00 for performance funding, and $254,700.00 for costs incurred under the North American Indian tuition waiver.

(v) The appropriation for Oakland Community College is $25,168,400.00, $25,130,000.00 for operations, $0.00 for performance funding, and $38,400.00 for costs incurred under the North American Indian tuition waiver.

(w) The appropriation for Schoolcraft College is $14,997,300.00, $14,972,000.00 for operations, $0.00 for performance funding, and $25,300.00 for costs incurred under the North American Indian tuition waiver.

(x) The appropriation for Southwestern Michigan College is $7,805,700.00, $7,786,600.00 for operations, $0.00 for performance funding, and $19,100.00 for costs incurred under the North American Indian tuition waiver.

(y) The appropriation for St. Clair County Community College is $8,355,300.00, $8,342,000.00 for operations, $0.00 for performance funding, and $13,300.00 for costs incurred under the North American Indian tuition waiver.

(z) The appropriation for Washtenaw Community College is $16,276,300.00, $16,257,300.00 for operations, $0.00 for performance funding, and $19,000.00 for costs incurred under the North American Indian tuition waiver.

(aa) The appropriation for Wayne County Community College is $19,462,800.00, $19,460,300.00 for operations, $0.00 for performance funding, and $2,500.00 for costs incurred under the North American Indian tuition waiver.

(bb) The appropriation for West Shore Community College is $2,914,300.00, $2,896,700.00 for operations, $0.00 for performance funding, and $17,600.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for community college operations is $363,570,600.00 and is appropriated from the state school aid fund.

(4) From the appropriations described in subsection (1), both of the following apply:

(a) Subject to section 207a, the amount appropriated for fiscal year 2025-2026 to offset certain fiscal year 2025-2026 retirement contributions is $7,189,000.00, appropriated from the state school aid fund.

(b) For fiscal year 2025-2026, there is allocated an amount not to exceed $19,600,000.00 for payments to participating community colleges, appropriated from the state school aid fund. A community college that receives money under this subdivision shall use that money solely for the purpose of offsetting the normal cost contribution rate.

(5) From the appropriations described in subsection (1), subject to section 207b, the amount appropriated for payments to community colleges that are participating entities of the retirement system is $89,500,000.00, appropriated from the state school aid fund.

(6) From the appropriations described in subsection (1), subject to section 207c, the amount appropriated for renaissance zone tax reimbursements is $2,200,000.00, appropriated from the state school aid fund. Each community college receiving funds in this subsection shall accrue these payments to its institutional fiscal year ending June 30, 2026.

Sec. 201j. (1) For fiscal year 2025-2026 only, from the money appropriated to the state school aid fund in section 201(1), $1,150,000.00 is allocated for career and education navigators for adult learners. Community colleges, partnering with 1 or more county governments, where practicable, may apply for grant funding through the department of lifelong education, advancement, and potential to supplement or create navigation efforts of adult learners.

(2) The funds allocated under this section for fiscal year 2025-2026 are a work project appropriation, and any unexpended funds remaining at the end of fiscal year 2025-2026 are carried forward into fiscal year 2026-2027, any unexpended funds remaining at the end of fiscal year 2026-2027 are carried forward into fiscal year 2027-2028, any unexpended funds remaining at the end of fiscal year 2027-2028 are carried forward into fiscal year 2028-2029, and any unexpended funds remaining at the end of fiscal year 2028-2029 are carried forward into fiscal year 2029-2030. The purpose of the work project is to support the career and education navigators assisting adult learners. The estimated completion date of the work project is September 30, 2030.

Sec. 201k. (1) For fiscal year 2025-2026 only, from the general fund/general purpose money appropriated in section 201(1), $250,000.00 is allocated to the Michigan Community Colleges Association to support a program intended to encourage high school students and young adults to pursue public service-focused careers, including those in public safety, education, and health care.

(2) The funds allocated under this section for fiscal year 2025-2026 are a work project appropriation, and any unexpended funds remaining at the end of fiscal year 2025-2026 are carried forward into fiscal year 2026-2027, any unexpended funds remaining at the end of fiscal year 2026-2027 are carried forward into fiscal year 2027-2028, any unexpended funds remaining at the end of fiscal year 2027-2028 are carried forward into fiscal year 2028-2029, and any unexpended funds remaining at the end of fiscal year 2028-2029 are carried forward into fiscal year 2029-2030. The purpose of the work project is to support the Local Heroes program encouraging public service-focused careers. The estimated completion date of the work project is September 30, 2030.

Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for higher education for the fiscal year ending September 30, 2026, from the funds indicated in this section. The following is a summary of the appropriations in this section and sections 236d, 236e, and 236j:

(a) The gross appropriation is $2,336,912,000.00. $2,337,091,500.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $2,336,912,000.00.$2,337,091,500.00.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $3,200,000.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $850,768,300.00.

(v) State general fund/general purpose money, $1,482,943,700.00.$1,483,123,200.00.

(c) The totals and subtotals reflected in subdivisions (a) and (b) do not include amounts appropriated under subsection (7)(d) or (8)(b) to avoid duplicating totals of amounts appropriated in this section and section 236j.

(2) Amounts appropriated for public universities are as follows:

(a) The appropriation for Central Michigan University is $99,466,100.00, $95,226,900.00 for operations, $0.00 for operations increase, $2,558,800.00 for MPSERS support payment, and $1,680,400.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Eastern Michigan University is $86,649,200.00, $83,979,800.00 for operations, $0.00 for operations increase, $2,256,500.00 for MPSERS support payment, and $412,900.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Ferris State University is $62,221,900.00, $59,816,300.00 for operations, $0.00 for operations increase, $1,607,300.00 for MPSERS support payment, and $798,300.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Grand Valley State University is $98,772,000.00, $97,552,900.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $1,219,100.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Lake Superior State University is $16,301,400.00, $14,465,600.00 for operations, $0.00 for operations increase, $388,700.00 for MPSERS support payment, and $1,447,100.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Michigan State University is $396,845,300.00, $321,516,900.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, $2,508,800.00 for costs incurred under the North American Indian tuition waiver, $39,096,200.00 for MSU AgBioResearch, and $33,723,400.00 for MSU Extension.

(g) The appropriation for Michigan Technological University is $56,659,000.00, $54,463,700.00 for operations, $0.00 for operations increase, $1,463,400.00 for MPSERS support payment, and $731,900.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Northern Michigan University is $55,688,200.00, $52,850,300.00 for operations, $0.00 for operations increase, $1,420,100.00 for MPSERS support payment, and $1,417,800.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Oakland University is $73,361,600.00, $73,036,400.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $325,200.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Saginaw Valley State University is $34,379,000.00, $34,196,000.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $183,000.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for University of Michigan ? Ann Arbor is $362,507,900.00, $360,607,300.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $1,900,600.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for University of Michigan ? Dearborn is $31,708,000.00, $31,513,700.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $194,300.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for University of Michigan ? Flint is $26,884,600.00, $26,403,700.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $480,900.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Wayne State University is $227,787,300.00, $227,310,200.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $477,100.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Western Michigan University is $125,246,700.00, $121,231,800.00 for operations, $0.00 for operations increase, $3,257,500.00 for MPSERS support payment, and $757,400.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for public universities is $1,754,478,200.00, appropriated from the following:

(a) State school aid fund, $643,168,300.00.

(b) State general fund/general purpose money, $1,111,309,900.00.

(4) The amount appropriated for Michigan public school employees' retirement system reimbursement is $0.00.

(5) The amount appropriated for state and regional programs is $322,100.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Higher education database modernization and conversion, $200,000.00.

(b) Midwestern Higher Education Compact, $122,100.00.

(6) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program, $586,800.00.

(c) Morris Hood, Jr. educator development program, $148,600.00.

(7) Subject to subsection (8), the amount appropriated for grants and financial aid is $469,500,000.00, allocated as follows:

(a) Tuition incentive program, $122,300,000.00.

(b) Children of veterans and officer's survivor tuition grant programs, $2,000,000.00.

(c) Project GEAR-UP, $3,200,000.00.

(d) Michigan achievement scholarships, $300,000,000.00. From this amount, up to $10,000,000.00 may be used to award skills scholarships under section 248a.

(e) Michigan reconnect, $42,000,000.00.

(8) The money appropriated in subsection (7) for grants and financial aid is appropriated from the following:

(a) Federal revenues under the United States Department of Education, Office of Elementary and Secondary Education, GEAR-UP program, $3,200,000.00.

(b) Postsecondary scholarship fund, $300,000,000.00.

(c) State general fund/general purpose money, $166,300,000.00.

(d) At the close of the fiscal year, state general fund/general purpose money appropriated in subsection (7) for grants and scholarships that is unspent must be deposited into the postsecondary scholarship fund created in section 236j.

(9) For fiscal year 2025-2026 only, in addition to the allocation under subsection (4), from the appropriations described in subsection (1), there is allocated an amount not to exceed $7,600,000.00 for payments to participating public universities, appropriated from the state school aid fund. A public university that receives money under this subsection shall use that money solely for the purpose of offsetting the normal cost contribution rate. As used in this subsection, "participating public universities" means public universities that are a reporting unit of the Michigan public school employees' retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that pay contributions to the Michigan public school employees' retirement system for the state fiscal year.

Sec. 236t. (1) For fiscal year 2025-2026 only, from the general fund/general purpose money appropriated in section 236(1), $179,500.00 is allocated for an education performance study.

(2) The funds allocated under this section for fiscal year 2025-2026 are a work project appropriation, and any unexpended funds remaining at the end of fiscal year 2025-2026 are carried forward into fiscal year 2026-2027, any unexpended funds remaining at the end of fiscal year 2026-2027 are carried forward into fiscal year 2027-2028, any unexpended funds remaining at the end of fiscal year 2027-2028 are carried forward into fiscal year 2028-2029, and any unexpended funds remaining at the end of fiscal year 2028-2029 are carried forward into fiscal year 2029-2030. The purpose of the work project is to support the completion of the education performance study. The estimated completion date of the work project is September 30, 2030.

Enacting section 1. (1) In accordance with section 30 of article IX of the state constitution of 1963, total state spending on school aid under article I of the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by 2025 PA 15 and this amendatory act, from state sources for fiscal year 2025-2026 is estimated at $18,903,903,200.00 and state appropriations for school aid to be paid to local units of government for fiscal year 2025-2026 are estimated at $17,454,304,100.00.

(2) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for community colleges for fiscal year 2025-2026 under article II of the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to 388.1830, as amended by 2025 PA 15 and this amendatory act, is estimated at $494,432,100.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2025-2026 is estimated at $494,432,100.00.

(3) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for higher education for fiscal year 2025-2026 under article III of the state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891, as amended by 2025 PA 15 and this amendatory act, is estimated at $2,333,891,500.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2025-2026 is estimated at $0.00.