SENATE Substitute For

HOUSE BILL NO. 5507

"The state school aid act of 1979,"

by amending sections 11, 17b, 201, 206, 236, and 241 (MCL 388.1611, 388.1617b, 388.1801, 388.1806, 388.1836, and 388.1841), sections 11, 201, and 236 as amended by 2023 PA 320, section 17b as amended by 2007 PA 137, and sections 206 and 241 as amended by 2023 PA 103.

the people of the state of michigan enact:

Sec. 11. (1) For the fiscal year ending September 30, 2023, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $17,290,268,900.00 from the state school aid fund, the sum of $124,350,000.00 from the general fund, an amount not to exceed $72,000,000.00 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 $200,000.00 from the school transportation fund created under section 22k, an amount not to exceed $25,000,000.00 from the school meals reserve fund created under section 30e, and an amount not to exceed $140,400,000.00 from the MPSERS retirement obligation reform reserve fund created under section 147b. For the fiscal year ending September 30, 2024, 2025, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $18,364,157,800.00 $200.00 from the state school aid fund, the sum of $87,900,000.00 $200.00 from the general fund, an amount not to exceed $72,000,000.00 $200.00 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 $245,000,000.00 $200.00 from the school consolidation and infrastructure fund created under section 11x, an amount not to exceed $125,000,000.00 $200.00 from the school transportation fund created under section 22k, an amount not to exceed $71,000,000.00 $200.00 from the enrollment stabilization fund created under section 29, an amount not to exceed $60,000,000.00 $200.00 from the school meals reserve fund created under section 30e, an amount not to exceed $18,000,000.00 $200.00 from the great start readiness program reserve fund created under section 32e, and an amount not to exceed $215,800,000.00 $200.00 from the MPSERS retirement obligation reform reserve fund created under section 147b. In addition, all available federal funds are only appropriated as allocated in this article for the fiscal years year ending September 30, 2023 and September 30, 2024.2025.

(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. 17b. (1) Not later than October 20, November 20, December 20, January 20, February 20, March 20, April 20, May 20, June 20, July 20, and August 20, the department shall prepare electronic files of the amount to be distributed under this act in the installment to the districts and intermediate districts and deliver the electronic files to the state treasurer, and the state treasurer shall pay the installments on each of those dates or, if the date is not a business day, on the next business day following that date. Except as otherwise provided in this act, the portion of the district's or intermediate district's state fiscal year entitlement to be included in each installment shall must be 1/11. A district or intermediate district shall accrue the payments received in July and August to the school fiscal year ending the immediately preceding June 30.

(2) The state treasurer shall make payment under this section by drawing a warrant in favor of the treasurer of each district or intermediate district for the amount payable to the district or intermediate district according to the electronic files and delivering the warrant to the treasurer of each district or intermediate district, or if the state treasurer receives a written request by the treasurer of the district or intermediate district specifying an account, by electronic funds transfer to that account of the amount payable to the district or intermediate district according to the electronic files. The department may make adjustments in payments made under this section through additional payments when changes in law or errors in computation cause the regularly scheduled payment to be less than the amount to which the district or intermediate district is entitled pursuant to under this act.

(3) Except as otherwise provided in this act, grant payments to districts and intermediate districts under this act shall must be paid according to the installment payment schedule under subsection (1).

(4) Upon the written request of a district or intermediate district and the submission of proof satisfactory to the department of a need of a temporary and nonrecurring nature, the superintendent, with the written concurrence of the state treasurer and the state budget director, may authorize an advance release of funds due a district or intermediate district under this act. An advance authorized under this subsection shall must not cause funds to be paid to a district or intermediate district more than 30 days earlier than the established payment date for those funds.

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, 2024, 2025, from the funds indicated in this section. The following is a summary of the appropriations in this section:

(a) The gross appropriation is $549,517,500.00. $200.00 After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $549,517,500.00.$200.00.

(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, $549,517,500.00.$200.00.

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

(2) Subject to subsection (3), the amount appropriated for community college operations is $357,961,900.00, allocated as follows:$200.00.

(a) The appropriation for Alpena Community College is $6,327,100.00, $6,026,800.00 for operations, $273,800.00 for performance funding, and $26,500.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Bay de Noc Community College is $6,299,200.00, $5,877,000.00 for operations, $308,300.00 for performance funding, and $113,900.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Delta College is $16,690,500.00, $15,888,200.00 for operations, $754,100.00 for performance funding, and $48,200.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Glen Oaks Community College is $2,939,000.00, $2,802,100.00 for operations, $136,900.00 for performance funding, and $0.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Gogebic Community College is $5,367,600.00, $5,103,300.00 for operations, $226,400.00 for performance funding, and $37,900.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Grand Rapids Community College is $20,966,400.00, $19,766,200.00 for operations, $1,078,200.00 for performance funding, and $122,000.00 for costs incurred under the North American Indian tuition waiver.

(g) The appropriation for Henry Ford College is $24,943,900.00, $23,700,100.00 for operations, $1,229,700.00 for performance funding, and $14,100.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Jackson College is $13,887,400.00, $13,295,100.00 for operations, $559,000.00 for performance funding, and $33,300.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Kalamazoo Valley Community College is $14,539,400.00, $13,776,100.00 for operations, $705,800.00 for performance funding, and $57,500.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Kellogg Community College is $11,290,200.00, $10,754,400.00 for operations, $514,800.00 for performance funding, and $21,000.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for Kirtland Community College is $3,792,900.00, $3,577,900.00 for operations, $195,200.00 for performance funding, and $19,800.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for Lake Michigan College is $6,321,600.00, $5,978,400.00 for operations, $339,600.00 for performance funding, and $3,600.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for Lansing Community College is $35,752,700.00, $34,228,900.00 for operations, $1,460,300.00 for performance funding, and $63,500.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Macomb Community College is $37,661,900.00, $35,911,900.00 for operations, $1,723,500.00 for performance funding, and $26,500.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Mid Michigan Community College is $5,798,500.00, $5,458,100.00 for operations, $284,800.00 for performance funding, and $55,600.00 for costs incurred under the North American Indian tuition waiver.

(p) The appropriation for Monroe County Community College is $5,286,800.00, $5,003,600.00 for operations, $281,100.00 for performance funding, and $2,100.00 for costs incurred under the North American Indian tuition waiver.

(q) The appropriation for Montcalm Community College is $3,966,700.00, $3,758,900.00 for operations, $198,300.00 for performance funding, and $9,500.00 for costs incurred under the North American Indian tuition waiver.

(r) The appropriation for C.S. Mott Community College is $17,823,200.00, $17,098,300.00 for operations, $693,400.00 for performance funding, and $31,500.00 for costs incurred under the North American Indian tuition waiver.

(s) The appropriation for Muskegon Community College is $10,223,600.00, $9,733,400.00 for operations, $477,500.00 for performance funding, and $12,700.00 for costs incurred under the North American Indian tuition waiver.

(t) The appropriation for North Central Michigan College is $4,011,000.00, $3,615,900.00 for operations, $252,900.00 for performance funding, and $142,200.00 for costs incurred under the North American Indian tuition waiver.

(u) The appropriation for Northwestern Michigan College is $10,650,300.00, $10,006,800.00 for operations, $466,500.00 for performance funding, and $177,000.00 for costs incurred under the North American Indian tuition waiver.

(v) The appropriation for Oakland Community College is $24,755,900.00, $23,469,500.00 for operations, $1,264,100.00 for performance funding, and $22,300.00 for costs incurred under the North American Indian tuition waiver.

(w) The appropriation for Schoolcraft College is $14,742,500.00, $13,939,500.00 for operations, $772,300.00 for performance funding, and $30,700.00 for costs incurred under the North American Indian tuition waiver.

(x) The appropriation for Southwestern Michigan College is $7,695,500.00, $7,332,800.00 for operations, $350,000.00 for performance funding, and $12,700.00 for costs incurred under the North American Indian tuition waiver.

(y) The appropriation for St. Clair County Community College is $8,226,400.00, $7,786,600.00 for operations, $423,800.00 for performance funding, and $16,000.00 for costs incurred under the North American Indian tuition waiver.

(z) The appropriation for Washtenaw Community College is $15,938,200.00, $14,851,300.00 for operations, $1,074,200.00 for performance funding, and $12,700.00 for costs incurred under the North American Indian tuition waiver.

(aa) The appropriation for Wayne County Community College is $19,197,900.00, $18,376,100.00 for operations, $817,200.00 for performance funding, and $4,600.00 for costs incurred under the North American Indian tuition waiver.

(bb) The appropriation for West Shore Community College is $2,865,600.00, $2,721,000.00 for operations, $130,200.00 for performance funding, and $14,400.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for community college operations is $357,961,900.00 $200.00 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 2023-2024 to offset certain fiscal year 2023-2024 retirement contributions is $7,189,000.00, appropriated from the state school aid fund.

(b) For fiscal year 2023-2024, there is allocated an amount not to exceed $23,000,000.00 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 $105,800,000.00, 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, 2024.

(7) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), the amount appropriated for career and education navigators for adult learners is $5,000,000.00, appropriated from the state school aid fund. Community colleges, partnering with 1 or more county governments, where practicable, may apply for grant funding through the Office of Sixty by 30 in the department of labor and economic opportunity to supplement or create navigation efforts of adult learners. The Office of Sixty by 30 shall issue a report including, but not limited to, the number of grants awarded, a list of community colleges awarded grants and the amounts, and the amount of unexpended funds remaining at the end of the fiscal year. The report must be issued to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director by September 30, 2024.

(8) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), the amount appropriated for the Michigan Reconnect Entry Point Program is $5,000,000.00, appropriated from the state school aid fund. Community colleges, partnering with 1 or more county governments, where practicable, may apply for grant funding through the Office of Sixty by 30 in the department of labor and economic opportunity to engage Michigan reconnect grant applicants who have been approved for funding but have not enrolled in a postsecondary or eligible Michigan reconnect program and work to identify and resolve barriers preventing enrollment. The Office of Sixty by 30 shall issue a report including, but not limited to, the number of grants awarded, a list of community colleges awarded grants and the amounts, a list of any counties that partnered with a community college for a grant under this section, and the amount of unexpended funds remaining at the end of the fiscal year. The report must be issued to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director by September 30, 2024.

(9) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), subject to sections 216c and 216d, the amount appropriated for infrastructure, technology, equipment, maintenance, housing, and safety is $32,836,600.00, appropriated from the state school aid fund.

(10) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $5,000,000.00 is appropriated from the state school aid fund for critical incident mapping. These funds must be distributed to community colleges proportionately to the amounts in subsection (2) for operations.

(11) From the appropriations described in subsection (1), the amount appropriated for Michigan workforce development projects is $530,000.00, appropriated from the state school aid fund. These funds must be awarded to Kalamazoo Valley Community College, and must be used by that college in conjunction with the college's wind turbine program for curriculum development for programs in 1 or more of the following areas:

(a) Electric vehicle battery installation and repair.

(b) Electric vehicle charger installation for residential applications, commercial applications, or both.

(12) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $5,000,000.00 is appropriated from the state school aid fund to Washtenaw Community College for costs related to the college's involvement with a semiconductor research alliance.

Sec. 206. (1) Except for the funds appropriated in section 201(4)(b), the The funds appropriated in section 201 are appropriated for community colleges with fiscal years ending June 30, 2024 2025 and must be paid out of the state treasury and distributed by the state treasurer to the respective community colleges in 11 monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2023. 2024. Each community college shall accrue its July and August 2024 2025 payments to its institutional fiscal year ending June 30, 2024.2025.

(2) The funds appropriated in section 201(4)(b) are appropriated for community colleges with fiscal years ending June 30, 2024 and must be distributed to the respective community colleges in quarterly installments on the sixteenth of each November, February, May, and August. Each community college shall accrue its August 2024 payments to its institutional fiscal year ending June 30, 2024.

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, 2024, 2025, from the funds indicated in this section. The following is a summary of the appropriations in this section and section 236j:

(a) The gross appropriation is $2,291,048,800.00. $200.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $2,291,048,800.00.$200.00.

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

(i) Total federal revenues, $131,026,400.00.$0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $482,268,300.00.$100.00.

(v) State general fund/general purpose money, $1,677,754,100.00.$100.00.

(c) The totals and subtotals reflected in subdivisions (a) and (b) do not include amounts appropriated under subsection (7)(f) or (8)(c) 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 $95,413,800.00, $89,352,000.00 for operations, $0.00 for per-student floor funding, $4,467,600.00 for operations increase, and $1,594,200.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Eastern Michigan University is $83,144,700.00, $78,798,800.00 for operations, $0.00 for per-student floor funding, $3,939,900.00 for operations increase, and $406,000.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Ferris State University is $59,646,500.00, $56,126,000.00 for operations, $0.00 for per-student floor funding, $2,806,300.00 for operations increase, and $714,200.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Grand Valley State University is $97,365,000.00, $79,974,500.00 for operations, $11,560,000.00 for per-student floor funding, $4,576,700.00 for operations increase, and $1,253,800.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Lake Superior State University is $15,190,300.00, $13,573,100.00 for operations, $0.00 for per-student floor funding, $678,700.00 for operations increase, and $938,500.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Michigan State University is $390,452,600.00, $301,681,300.00 for operations, $0.00 for per-student floor funding, $15,084,100.00 for operations increase, $1,943,800.00 for costs incurred under the North American Indian tuition waiver, $38,518,400.00 for MSU AgBioResearch, and $33,225,000.00 for MSU Extension.

(g) The appropriation for Michigan Technological University is $54,525,700.00, $51,103,600.00 for operations, $0.00 for per-student floor funding, $2,555,200.00 for operations increase, and $866,900.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Northern Michigan University is $53,320,000.00, $49,589,800.00 for operations, $0.00 for per-student floor funding, $2,479,500.00 for operations increase, and $1,250,700.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Oakland University is $72,288,800.00, $60,406,600.00 for operations, $8,123,900.00 for per-student floor funding, $3,426,500.00 for operations increase, and $331,800.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Saginaw Valley State University is $33,894,500.00, $32,086,300.00 for operations, $0.00 for per-student floor funding, $1,604,300.00 for operations increase, and $203,900.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for University of Michigan � Ann Arbor is $356,568,800.00, $338,360,300.00 for operations, $0.00 for per-student floor funding, $16,918,000.00 for operations increase, and $1,290,500.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for University of Michigan � Dearborn is $31,233,500.00, $27,869,700.00 for operations, $1,699,800.00 for per-student floor funding, $1,478,500.00 for operations increase, and $185,500.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for University of Michigan � Flint is $26,404,700.00, $24,774,800.00 for operations, $0.00 for per-student floor funding, $1,238,700.00 for operations increase, and $391,200.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Wayne State University is $224,354,500.00, $213,286,600.00 for operations, $0.00 for per-student floor funding, $10,664,300.00 for operations increase, and $403,600.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Western Michigan University is $119,983,900.00, $113,752,600.00 for operations, $0.00 for per-student floor funding, $5,687,600.00 for operations increase, and $543,700.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for public universities is $1,713,787,300.00, appropriated from the following:

(a) State school aid fund, $443,168,300.00.

(b) State general fund/general purpose money, $1,270,619,000.00.

(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 $316,800.00, 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, $116,800.00.

(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.

(7) Subject to subsection (8), the amount appropriated for grants and financial aid is $447,283,200.00, allocated as follows:

(a) State competitive scholarships, $26,861,700.00.

(b) Tuition grants, $42,021,500.00.

(d) Children of veterans and officer's survivor tuition grant programs, $1,400,000.00.

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

(f) 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.

(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) Federal revenues under the social security act, temporary assistance for needy families, $127,826,400.00.

(d) State general fund/general purpose money, $16,256,800.00.

(9) For fiscal year 2023-2024 only, in addition to the allocation under subsection (4), from the appropriations described in subsection (1), there is allocated an amount not to exceed $9,100,000.00 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.

(10) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), the amount appropriated for Michigan Technological University for the creation of a bachelor of science degree in nursing program is $870,000.00, appropriated from state general fund/general purpose money.

(11) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $3,000,000.00 is appropriated from state general fund/general purpose money to the Michigan geological survey for costs related to the development, construction, and equipment purchases for a new facility.

(12) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $5,000,000.00 is appropriated from state general fund/general purpose money for critical incident mapping. These funds must be distributed to universities proportionately to the amounts in subsection (2) for operations.

(13) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), subject to sections 236m and 236o, $79,000,000.00 is appropriated from general fund/general purpose money for infrastructure, technology, equipment, maintenance, and safety.

(14) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $30,000,000.00 is appropriated from the state school aid fund to Michigan State University for the Engineering and Digital Innovation Center.

Sec. 241. Subject to sections 241a, 241b, 241c, and 244,the funds appropriated in section 236 to public universities must be paid out of the state treasury and distributed by the state treasurer to the respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2023. 2024. Except for Wayne State University, each institution shall accrue its July and August 2024 2025 payments to its institutional fiscal year ending June 30, 2024.2025.