SB 860 (Session 2025-2026) – Michigan
Appropriations: school aid omnibus; fiscal year 2026-2027 appropriations for K-12, higher education, and community colleges
Overview
- Type: Appropriations bill amending the Michigan State School Aid Act of 1979 (PA 94)
- Purpose: Set multi-year education funding for K-12, community colleges, and universities for fiscal years ending 2025-2027; update allocation details and reserve/transfer mechanisms
- Sponsor: Senator Darrin Camilleri (co-sponsor listed)
Key Provisions and Projections
1) K-12 and related education funding (Section 11)
- Fiscal year 2025 (ending 9/30/2025): Total appropriations specified from multiple funds:
- State School Aid Fund: $17,936,546,300
- General Fund: $78,830,600
- Various reserve and dedicated funds (up to amounts such as $125,000,000 from the School Transportation Fund, $481,400,000 from the MPSERS retirement obligation reform reserve, among others)
- Fiscal year 2026 (ending 9/30/2026): Total appropriations listed:
- State School Aid Fund: $18,366,334,700
- General Fund: $100.00 (placeholder in text; reads as $100)
- School Consolidation and Infrastructure Fund: up to $100.00
- School Transportation Fund: up to $100.00
- Enrollment Stabilization Fund: up to $100.00
- Great Start Readiness Reserve Fund: up to $100.00
- Educator Fellowship Fund: up to $100.00
- State School Aid Pupil Support Reserve Fund: up to $100.00
- General Pupil Support Reserve Fund: up to $100.00
- Additionally, all available federal funds are appropriated as allocated for 2025-2027
- Note: The text shows many “$100.00” placeholders; interpretation suggests these are formatting artifacts and the real allocations come from the named funds
- Fiscal year 2027 (ending 9/30/2027): Minimal specified baseline: $100.00 from each of several funds (likely placeholders), with federal funds again appropriated as allocated
- Allocation priority: General Fund allocations to fund Article purposes before other allocations from the State School Aid Fund; unexpended GF within the year rolls to the School Aid Stabilization Fund (Sec. 11(2)-(3))
2) Community Colleges (Section 201)
- Fiscal year 2026-2027: Gross appropriation of $2,336,912,000; adjusted gross after interdepartmental transfers likewise
- State-restricted funds totaling $493,032,100; general fund/general purpose money $0 (primary funding from restricted sources)
- Operations: $363,570,600 allocated to 24+ community colleges with individual line items for each college (e.g., Alpena CC, Bay de Noc CC, Delta College, Grand Rapids CC, Lansing CC, Macomb CC, etc.), including:
- Base operations amounts (varied by college)
- Small, specified amounts for North American Indian tuition waiver costs
- Some colleges have separate line items for performance funding (mostly $0 in this draft)
- Other community college considerations:
- Retirement system payments and participation: includes allocations for participating colleges’ retirement system costs
- Renaissance Zone tax reimbursements: $2,200,000 total
- Section 201d, 201e references: details on grants, aid, and related program funding (e.g., Michigan Reconnect, tuition incentives)
3) Higher Education (Section 236)
- Fiscal year 2026-2027: Gross appropriation of $2,336,912,000; adjusted gross from restricted sources and general fund totals
- Public universities total appropriation: $1,754,478,200 (funded from State School Aid Fund and General Fund)
- University-by-university allocations: includes major state universities and Michigan-specific institutions (e.g., Central Michigan University, Eastern Michigan University, Ferris State University, Grand Valley State University, Lake Superior State University, Michigan State University, Michigan Technological University, Northern Michigan University, University of Michigan (Ann Arbor, Dearborn, Flint), Wayne State University, Western Michigan University, and others)
- Examples:
- Michigan State University: $396,845,300 total; $321,516,900 for operations; $39,096,200 for MSU AgBioResearch; $33,723,400 for MSU Extension; North American Indian tuition waiver $2,508,800
- University of Michigan – Ann Arbor: $362,507,900 total; $360,607,300 for operations; $1,900,600 for North American Indian tuition waiver
- Wayne State University: $227,787,300 total; $227,310,200 for operations
- Funding sources for higher education: State School Aid Fund and General Fund
- Special programs and supplemental items:
- Higher Education Database Modernization and Conversion: $200,000
- Midwestern Higher Education Compact: $122,100
- Martin Luther King Jr./Cesar Chavez/Rosa Parks program: $2,691,500 (supports select student services, partnership programs, and educator development)
4) Grants, Financial Aid, and Other Programs (Sections 7, 8)
- Grants and financial aid total: $469,500,000 (subject to subsection 8) with allocations:
- Tuition Incentive Program: $122,300,000
- Children of Veterans/Officer’s Survivor Tuition Grants: $2,000,000
- Project GEAR UP: $3,200,000
- Michigan Achievement Scholarships: $300,000,000 (up to $10,000,000 for Skills Scholarships per section 248a)
- Michigan Reconnect: $42,000,000
- Sources of these funds (subsection 8):
- Federal revenues (GEAR UP): $3,200,000
- Postsecondary Scholarship Fund: $300,000,000
- State General Fund: $166,300,000
- Unspent general fund allocations at year-end roll into the Postsecondary Scholarship Fund (section 236j)
5) Retirement and Related Provisions
- Some sections allocate to offset normal cost contributions for participating universities and reserve funds to manage retirement-related costs (e.g., 2025-2026 offset for retirement contributions)
- Provisions reference the Michigan Public School Employees' Retirement System (MPSERS) and related support payments
Procedural and Timeline Details
- The bill is introduced and assigned to the Appropriations Committee (reassigned to the Committee on Appropriations on 2026-04-14)
- Schedule contemplates fiscal years 2025-2026 and 2026-2027 with multi-year budgeting
- The bill includes cross-references to existing sections of PA 94 (as amended by 2025 PA 15) and incorporates funds from multiple dedicated accounts and reserve funds
- The act emphasizes that available federal funds are appropriated as allocated for the specified years
Impact and Who is Affected
- K-12: Public schools receive updated, multi-fund funding from the State School Aid Fund and related sources; overages/deferrals managed via stabilization and reserve funds
- Community Colleges: Operational funding and targeted expenditures for tuition waivers, North American Indian tuition costs, and retirement contributions; funding to each college listed
- Universities: State support for public universities, including operations, research programs (MSU AgBioResearch, MSU Extension), and North American Indian tuition waivers
- Students: Access to tuition incentive programs, Michigan Reconnect, and other scholarships
- Institutions: Managing retirement/normal cost contributions and appropriations from multiple funds
Notes
- The text contains several “$100.00” placeholders in the formatted sections, likely formatting artifacts; substantive allocations are tied to named funds (State School Aid Fund, General Fund, various reserve and restricted funds)
- The bill is primarily an omnibus appropriations package for FY2026-2027 with complementary adjustments for FY2025-2026 and transitional provisions
Sponsor
- Primary: Senator Darrin Camilleri (co-sponsor listed)
This summary focuses on the bill’s substantive funding provisions, their intended recipients, and key fiscal mechanics.
