While there were other significant differences between the proposals, both the House and Senate proposed a 2.5% foundation allowance increase to $10,300, the same as the Governor’s recommendation.
The House moved quickly. On April 22, the House Appropriations Committee rolled together the School Aid, community college and university budgets into a “school bus” bill, House Bill 5630. The committee approved it, and the House passed it that night by the minimum number of votes needed, 56-49. It will now go to the Senate.
On the Senate side, the Senate Appropriations Committee met on April 23 and approved the budget. It is now before the full Senate for expected debate and passage next week.
We urge you to continue to talk to your legislators about how these proposals will affect your district, other items that would be useful, and the timeliness of final budget decisions. We will keep you informed as the budget continues to move through the process. If you have questions, please feel free to contact us.
The following compares the budget proposals by certain sections:
Sec. 6 – Weighted pupil membership definition
Governor: Defines a weighted pupil and sets the percentage of increased funding for those students. Under the definition, an English language learner would be counted as 1.0190 to 1.1687, depending on their WIDA composite score. An economically advantaged student would be counted as 1.01692 to 1.2273, 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. The section also includes intent language to increase the percentages in future budgets.
House: Does not include. Does add language to count a pupil who enrolls in a district after the October count day as 1/11 FTE for each month the pupil is enrolled between October and August.
Senate: Concurs with the Governor and sets a schedule for the weight amount to increase each year over 15 years. The proposal also allows a district to use the actual pupil count for the fiscal year or a three-year average count, whichever is greater, to determine pupil funding.
Sec. 11z – School Aid rainy day fund
Governor: Does not include.
House: Deposits $239.1 million into the rainy day fund.
Senate: Does not include.
Sec. 12e – Infrastructure grants
Governor: Does not include.
House: Appropriates $150 million for grants for critical infrastructure needs and caps the grants at $10 million.
Senate: Maintains $100 million for grants for infrastructure needs.
Sec. 16a – Prohibitions related to race, DEI and gender -- NEW
Governor: Does not include.
House: Establishes a new section that requires 20% of a district’s discretionary funding be withheld if: it’s curriculum promotes race or gender stereotyping or implicit race or gender stereotyping; sports teams are not strictly based on biological sex, unless they are co-ed; buildings have a multi-stall unisex bathroom available to students; or the district does not provide notice to a student’s parents if that student requests the use of a different name or pronoun.
Senate: Does not include.
Sec. 20 – Per-pupil foundation allowance
Governor: Increases the target foundation allowance by $250 per pupil for an allowance of $10,300, a 2.5% increase. It sets the cyber school allowance at $8,000 per pupil, 80% of the target foundation allowance.
House: Concurs with the Governor, except it funds cyber schools at 100%.
Senate: Concurs with the Governor.
Sec 21b – Dual enrollment
Governor: Appropriates $20 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.
House: 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.
Senate: Appropriates $60 million to any district for reimbursement of costs, as long as the district reports the dual enrollment participation numbers and eligible charges to the department.
Sec 21f – Virtual Learning
Governor: Does not include.
House: Does not include.
Senate: Allows a district to provide 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.
Sec. 22b – Discretionary payment requirements
Governor: Adds language requiring districts to comply with new section 164m and send notification to parents if the district is not using a curriculum from MDE’s evidence-based curriculum list, as required under the read by grade 3 law, in order to receive funding under this section.
House: Does not include.
Senate: Concurs with intent of Governor’s language but puts the requirements in Senate Bill 903, which adds Sec. 1280h to the Revised School Code. SB903 and SB858 are tie-barred together.
Sec. 22d – Rural and isolated districts
Governor: Increases funding by $783,000, a 6% increase, for payments to rural and isolated districts.
House: Increases funding by $643,700, a 5% increase, for payments to rural and isolated districts.
Senate: Increases funding by $899,200, a 7% increase, for payments to rural and isolated districts.
Secs. 22l – Transportation funding
Governor: Allocates $125 million for district transportation costs through the same formula as last year.
House: Concurs with the Governor.
Senate: Allocates $150 million for district transportation costs through the same formula as last year.
Sec 23h – Math education supports – NEW
Governor: Appropriates $12 million for math education supports. $3 million for professional development for math teachers and $9 million for early mathematics specialists to assist teachers and staff in implementing research-based instructional strategies for grades K-5.
House: Does not include.
Senate: Concurs with the Governor.
Sec 27b – Grow Your Own
Governor: Allocates $60 million to districts and ISDs for Grow Your Own programs. Also allows up to $3 million for school librarian specialist certification grants that can be awarded to a program that provides a pathway for certified teachers to receive a school librarian specialist endorsement.
House: Maintains current language, does not include an appropriation.
Senate: Allocates $25 million and creates new criteria.
Sec 27l – Educator compensation
Governor: Repeals this section.
House: Repeals this section.
Senate: 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
Governor: Increases appropriation to $125 million to assist districts with declining enrollment.
House: Maintains $71 million for this line item.
Senate: Does not include because of the changes made to the pupil count process in Sec. 6.
Sec. 30d – Universal breakfast and lunch programs
Governor: Maintains $200 million to reimburse schools for the cost of providing free breakfast and lunch to all students.
House: Maintains $200 million to reimburse schools for the cost of providing free breakfast and lunch to all students. However, it also adds language that in order to receive funding, a district may not make soda or candy available for purchase by students, and includes a list of fats, chemicals and dyes that are banned from food served for lunch or breakfast.
Senate: Concurs with the Governor.
Sec. 31a – At-risk funding
Governor: Funding is moved into the target foundation line item to be distributed through the new weighted pupil formula. The requirements and allowable uses for the funds are struck and will now fall under new section 164m. $33 million for adolescent health centers and $11.65 million for hearing, vision and dental screenings remain in this section.
House: Increases funding by 5% to $1.4 billion and requires districts to spend at least a proportional amount of funds in buildings as there are qualifying students in that building.
Senate: Concurs with the Governor however, requirements are included in Senate Bill 903, which adds Sec. 1280h to the Revised School Code. SB903 and SB858 are tie-barred together.
Sec. 31n – School mental health and support services
Governor: 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.
House: Concurs with the Governor.
Senate: Concurs with the Governor.
Sec. 31aa –Mental health and school safety grants
Governor: 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. 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 funds under this section. This language was upheld by the court.
House: 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 and sets the payment at $146.87 per pupil. It retains much of 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. However, it tightens the definition of mass casualty and tries to clarify that the waiver of privilege language does not include an individual.
Senate: 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. It retains much of 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. However, it tightens the definition of mass casualty and removes the automatic waiver of privilege.
Secs. 32d and 39 – Great Start Readiness Program
Governor: Increases funding for the Great Start Readiness Program by 6% 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 $11,290. It also includes $28 million for transportation costs and $25 million for new classrooms or to expand existing ones.
House: Increases funding by 2.5% and the GSRP target foundation to $10,916. It maintains eligibility for all children who will be four by Sept. 1 and includes $28 million for transportation costs, but no additional funding for new or expanded classrooms.
Senate: Concurs with the Governor.
Sec. 32p – Early learning partnerships – NEW
Governor: 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.
House: Includes this new section and appropriates $29.8 million.
Senate: Concurs with the Governor, but includes some different requirements.
Sec. 35a – Third grade reading
Governor: Doubles funding for this section to $102,500,000. It includes language to ensure that each ISD receives enough funding for at least one more literacy coach and calls on MDE to develop a coaching evaluation framework. It allocates $50 million for professional development and LETRS training.
House: Increases funding by 56% to $117 million. It allocates $75 million for professional development and LETRS training and requires MDE to create a credential for educators who complete LETRS training.
Senate: Concurs with the Governor.
Sec 35p – High impact tutoring – NEW
Governor: Allocates $100 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.
House: Allocates $50 million for competitive grants to implement high-impact tutoring in eligible districts. The tutoring must be in-person and during or after the school day with a minimum of two sessions per week, and it must include assessment and feedback. The tutoring partners can be ISDs, for-profit vendors or nonprofit vendors.
Senate: Concurs with the Governor but only appropriates $50 million.
Sec 35q (Governor & Senate) or Sec 35o (House) – Literacy dashboard – NEW
Governor: 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.
House: Concurs with the Governor.
Senate: Concurs with the Governor.
Sec 35q (House) – Private tutoring – NEW
Governor: Does not include.
House: Appropriates $40 million for grants to districts to reimburse parents for the costs of private tutoring. The pilot program would include no more than 20 districts.
Senate: Does not include.
Sec. 41 – English language learners
Governor: Funding is moved into the target foundation line item to be distributed through the new weighted pupil formula. The requirements and allowable uses for the funds are struck and will now fall under new section 164m.
House: Increases funding by 5% to $65.9 million. This increases the three levels of funding to $2,445, $1,688 and $276 per pupil.
Senate: Repeals this section however, funding is moved into the target foundation line item to be distributed through the new weighted pupil formula, and the requirements are included in Senate Bill 903, which adds Sec. 1280h to the Revised School Code. SB903 and SB858 are tie-barred together.
Sec. 51a – Special education funding
Governor: Increases funding for special education programs to continue to fund pupils at 100% of the target foundation allowance.
House: Concurs with the Governor.
Senate: Concurs with the Governor.
Sec. 54d – Early On
Governor: Increases funding by 6% to $25.1 million for Early On programs for children from birth to age three with a developmental delay, disability or both.
House: Increases funding by $5 million to $28.7 million.
Senate: Concurs with the Governor.
Sec. 56 – Special education millage equalization
Governor: Increases the appropriation for this section to $89.2 million and restructures the formula used to distribute the funds for special education costs. The intent is to achieve more equitable funding across the state.
House: Does not include new funding formula and maintains current year appropriation.
Senate: Concurs with the Governor.
Secs 61a & 61b – CTE added costs and early middle college
Governor: Increases funding for each section by 6% to $44.2 million for added costs and $8.9 million for early middle college.
House: Increases funding for CTE added costs by 5% to $43.8 million and early middle college by 11% to $9.4 million.
Senate: Concurs with the Governor.
Sec. 67f – FAFSA incentives
Governor: Maintains $10 million for grants to districts that include completing the FAFSA as a graduation requirement.
House: Repeals section.
Senate: Concurs with the Governor and adds language to allow a recipient of the funding to return any unused funds to the department by October 30, 2030.
Sec. 81 – ISD funding
Governor: Increases funding to ISDs by $2.1 million for a 2.5% increase over last year. It also maintains the language requiring coordination with charter schools in ISD activities.
House: Increases funding by $2.07 million. It also maintains the language requiring coordination with charter schools in ISD activities.
Senate: Increases funding by $2.2 million. It also maintains the language requiring coordination with charter schools in ISD activities.
Sec. 99s – MiSTEM Network -- NEW
Governor: 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.
House: Does not include.
Senate: Concurs with the Governor.
Sec. 147 – MPSERS rates
Governor: Makes annual adjustments to all rates.
House: Concurs with the Governor.
Senate: Concurs with the Governor.
Sec. 147a – MPSERS offset
Governor: Allocates $307 million to offset normal costs based on payroll costs and includes $100,000 for libraries. Once again, it does not include the $100 million state payment that was eliminated last year.
House: Concurs with the Governor.
Senate: Concurs with the Governor.
Sec. 147c – MPSERS rate cap
Governor: Allocates $1.5 billion to cover state contributions over the district payroll cap of 15.21% on unfunded liability costs.
House: Concurs with the Governor.
Senate: Concurs with the Governor.
Sec 152b – Funding for nonpublic schools
Governor: Repeals this section.
House: Maintains current $1 million appropriation.
Senate: Maintains current $1 million appropriation.
Sec. 164m – Requirements for weighted pupil funding -- NEW
Governor: Outlines specific things that a district must do to receive funding under the new weighted pupil formula. It includes implementing a multi-tiered system of supports, complying with the requirements under the read by grade 3 law, supporting items in the district’s Michigan Integrated Continuous Improvement Process plan, submitting requested information on spending and allowing audits by MDE, and communicating to parents literacy-related results and how the district spent the funds.
House: Does not include.
Senate: Does not include, but the requirements are included in Senate Bill 903, which adds Sec. 1280h to the Revised School Code. SB903 and SB858 are tie-barred together.