The Michigan Department of Education budget maintains funding for school board training at $150,000.
The following highlights the final agreements in certain sections of the School Aid Fund budget. If you have questions, please feel free to contact us.
Sec 6 (4)(x) – Membership Calculation -- NEW
For the 2026-2027 school year only, a district may use the actual pupil count for the fiscal year or a three-year average count, whichever is greater, to determine pupil funding.
Sec 6 (21) – Weighted pupil membership definition – NEW
Establishes a weighted pupil formula and sets the percentage of increased funding for those students. Under the definition, an English language learner would be counted as 1.0219 to 1.1940, depending on their WIDA composite score. An economically disadvantaged student would be counted as 1.1913 to 1.2569, depending on which opportunity index band a district belongs to. These percentages are then multiplied by the target foundation allowance to determine the district’s funding for those eligible students. There is intent language to increase the weights each year.
Sec 12e – Infrastructure grants
Appropriates $50 million for grants for critical infrastructure needs and caps the grants at $10 million. Included is $8.8 million for certain districts to demolish buildings
Sec 16a – Prohibitions related to race, DEI and gender – NEW
Does not include.
Sec 20 – Per-pupil foundation allowance
Increases the target foundation allowance by $250 per pupil for an allowance of $10,300, a 2.5% increase. It maintains the cyber school allowance at the full amount of the target foundation allowance.
Sec 21b – Dual enrollment
Appropriates $40 million for reimbursement for costs to districts with an opportunity band of 4 or higher. If the amount is insufficient, payment would be capped at 25% and prorated. If it is not all expended, the eligible opportunity bands shall be expanded one at a time.
Sec 21f – Virtual Learning
Allows a district to provide up to six days of virtual learning, three for designated testing days and three for school closures due to conditions outside of the district’s control, such as weather or unforeseen emergencies. All other emergency closure days must have been exhausted before using the three virtual days.
Sec 22b – Discretionary payment requirements
Allocates $1.6 billion to cover the new weighted formulas for ELL and economically disadvantaged students. This provides a 20% increase for those areas. Also states to receive funding, a district must comply with Senate Bill 903, which adds Sec 1280h to the Revised School Code (details at end of document).
Sec 22d – Rural and isolated districts
Increases funding by $1.3 million, a 10% increase, for payments to rural and isolated districts.
Secs. 22l – Transportation funding
Allocates $125 million for district transportation costs through the same formula as last year.
Sec 27b – Grow Your Own
Allocates $25 million, caps administrative expenses at 10%, and creates a fourth tier.
Sec 27l – Educator compensation
Appropriates $150 million to be distributed on a per-pupil basis for districts to increase educator compensation. It includes language to say these are one-time bonuses and should not be considered compensation for retirement purposes.
Sec 29 – Enrollment stabilization fund
Does not include because of the changes made to the pupil count process in Sec 6(4)(x).
Sec 30d – Universal breakfast and lunch programs
Maintains $200 million to reimburse public schools for the cost of providing free breakfast and lunch to all students. Includes $2 million of General Fund money to reimburse nonpublic schools. To qualify, districts must participate in both the National School Lunch Program (currently required) and the National School Breakfast Program (new this year).
Sec 31a – At-risk funding
Funding is moved into the target foundation line item to be distributed through the new weighted pupil formula. $33 million for adolescent health centers and $10.15 million for hearing, vision and dental screenings remain in this section.
Sec 31n – School mental health and support services
Maintains funding for this section for licensed behavioral health providers in schools. It also continues to allow those providers to qualify for federal Medicaid match funding.
Sec 31aa –Mental health and school safety grants
Appropriates $300 million for payments to districts for certain activities to improve the mental health of students and staff and/or to improve school safety. Also includes $10 million of General Fund money for nonpublic schools. Sets payment to districts at $73.53 per pupil for mental health expenses and $147.06 per pupil for school safety expenses. However, it also retains the language requiring a district to consent to a comprehensive investigation by a person or entity chosen by the Governor in the event of a mass casualty event in order to receive the school safety funds under this section. It tightens the definition of mass casualty by including significant “physical” injuries and an incident resulting in “2 or more” fatalities.
Secs. 32d and 39 – Great Start Readiness Program
Increases funding for the Great Start Readiness Program by 10% and maintains eligibility for all children who will be four by Sept. 1. However, students in low-income households must be given priority for enrollment slots. Increases the GSRP target foundation to $11,736. It also includes $28 million for transportation costs and $3.6 million for new classrooms or to expand existing ones.
Sec 32p – Early learning partnerships – NEW
Appropriates $30 million for statewide early learning partnerships. These partnerships are intended to provide central access and awareness for families for early childhood information to improve engagement.
Sec 35a – Third grade reading
Increases funding by more than double to $127.5 million for this section. Allocates $52.5 million for literacy coaches and includes language to ensure that each ISD receives enough funding for at least one more literacy coach. It calls on MDE to develop a coaching evaluation framework. It allocates $75 million for professional development and LETRS training.
Sec 35d – Dyslexia Supports – NEW
Allocates $1 million for grants to districts and ISDs to purchase components of an eligible teacher training program for children with dyslexia.
Sec 35p – High impact tutoring – NEW
Allocates $50 million for competitive grants to implement high-impact tutoring in eligible districts. The tutoring must be in-person and during the school day with a minimum of two sessions per week. The tutoring partners can be ISDs, for-profit vendors or nonprofit vendors.
Sec 35q – Literacy dashboard – NEW
Requires MDE to establish a literacy achievement and opportunity transparency dashboard by March 2027. The dashboard should include literacy-related results, curriculum and assessments being used, and any additional metrics that help track statewide literacy progress.
Sec 36 – Math curriculum committee – NEW
Allocates $5 million for MDE to create a committee to critically evaluate K-5 math curricula and materials and recommend no more than 5 curricula for districts to purchase.
Sec 41 – English language learners
Repeals this section; however, funding is moved into the target foundation line item to be distributed through the new weighted pupil formula (see Sec 6 and 22b).
Sec 51a – Special education funding
Increases funding for special education programs to continue to fund pupils at 100% of the target foundation allowance.
Sec 51d – Federal special education funding
Removes the specific federal spending amounts and replaces them with $100 placeholders. The language does still say all available federal funding shall be allocated on a schedule determined by MDE.
Sec 54d – Early On
Increases funding by 10% to $26.1 million for Early On programs for children from birth to age three with a developmental delay, disability or both.
Sec 56 – Special education millage equalization
Maintains current year formula.
Secs 61a & 61b – CTE added costs and early middle college
Increases funding for each section by 10% to $46 million for added costs and $9.2 million for early middle college.
Sec 67f – FAFSA incentives
Maintains $10 million for grants to districts that include completing the FAFSA as a graduation requirement, and states initial payments must be made by January 31, 2027.
Sec 81 – ISD funding
Increases funding by 2.5% in line with the foundation allowance increase to a total amount of $2.1 million. It also maintains the language requiring coordination with charter schools in ISD activities.
Sec 99s – MiSTEM Network – NEW
Appropriates $8 million for science, technology, engineering and math programs. The MiSTEM network would align with the statewide STEM strategy to increase the number of students advancing in STEM fields.
Sec 147 – MPSERS rates
Makes annual adjustments to all rates.
Sec 147a – MPSERS offset
Allocates $351.2 million to offset normal costs based on payroll costs and includes $100,000 for libraries.
Sec 147c – MPSERS rate cap 411
Allocates $1.5 billion to cover state contributions over the district payroll cap of 15.21% on unfunded liability costs.
Sec 152b – Funding for nonpublic schools
Maintains current $1 million appropriation.
Sec 164k – Non-compliance penalties
Requires districts to follow provisions in the federal Smart Snacks Standards, have every student household, as practicable, fill out the child nutrition and education benefits application, not give out financial incentives for students to attend on count day, and implement the presidential fitness test for all students enrolled in physical education classes in each building. Failure to comply will result in 5% of funding being withheld from the district.
Sec 164m – Requirements for weighted pupil funding – NEW
Outlines specific things that a district must do if it receives funding under the new weighted pupil formula. However, it also states if Senate Bill 903 passes, which it did, districts must follow that. This adds Sec 1280h to the Revised School Code.