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HB 5630

Appropriations: school aid omnibus; fiscal year 2026-2027 appropriations for K-12 school aid, higher education, and community colleges; provide for. Amends; adds & repeals (See bill).

2025-2026 Regular Session Introduced by Ann Bollin and 1 co-sponsor

Creates a school aid stabilization and infrastructure funding framework to protect districts from proration, fund critical facilities, and refine pupil counting and eligibility for

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Bill Summary · HB 5630

Summary of HB 5630 (2025-2026) – Michigan: School Aid Omnibus, FY 2026-2027

Purpose and scope
- This substitute proposes appropriations and amendments under the Michigan State School Aid Act of 1979 to support K-12, higher education, and related educational programs for fiscal years ending 2026-2027. It reorganizes and updates funding levels across several dedicated funds and establishes new or revised accounts to manage educational financing, infrastructure, and stabilization measures.

Key provisions and changes
- Foundation and total state aid
- Sets annual appropriation levels from multiple funds (state school aid fund, general fund, various reserve and dedicated funds) for fiscal years ending 2025, 2026, and 2027. Specific dollar amounts are listed for each year and fund, with additional federal funds described as appropriated “as allocated.”
- Establishes sequencing that general fund expenditures must occur before state school aid fund expenditures, and directs unspent general fund allocations to be transferred to the school aid stabilization fund.

  • School aid stabilization fund (Sec. 11a)

    • Creates a separate account within the state school aid fund to hold unexpended revenue, statutorily dedicated money, and appropriations for stabilization purposes.
    • Provides authority to deploy funds to avoid or reduce proration of payments if state revenues decline or if shortfalls are projected, with legislative notification requirements.

  • School consolidation and infrastructure fund (Sec. 11x)

    • Creates a dedicated fund to improve student outcomes, efficiency, and safety, with investment and auditing provisions.
    • Enables grants (up to specified limits) to districts/intermediate districts for infrastructure needs identified as critical by a statewide facilities study.
    • Establishes a competitive grant process and prioritization criteria (e.g., opportunity index bands, economic disadvantage, HVAC/roofing needs, bond-issuance constraints).
    • Requires facility condition assessments prior to funding infrastructure projects.

  • Infrastructure and related grants (Secs. 12e, 12f)

    • Provides for grants to districts/intermediate districts for infrastructure (Sec. 12e) and specific grants to demolish vacant buildings (Sec. 12f), with eligibility, application procedures, prioritization, and sunset/funding timelines.

  • Pupil counting and membership provisions (Sec. 6, and related sections)

    • Revisions to the complex membership calculation framework (full-time equivalent, 2-way attendance requirements for cyber/virtual courses, enrollment rules for various program types, middle college, and other pathways).
    • Addresses scenarios involving public school academies, cooperative arrangements, students in neighboring districts or states, and special populations (e.g., dropouts, homeless students, expelled students reinstatement, and Olympic Education Center participants).
    • Establishes timing rules for pupil membership counts (count day definitions) and adjustments after audits, including hardship provisions for districts facing financial stress.

  • Pupil eligibility and age rules

    • Maintains and clarifies age and eligibility constraints for membership, with exceptions for special education, certain nontraditional programs, and students in alternative settings.

  • Debt, loans, and cash-flow

    • Allocates funds related to school loan bond redemption, school bond loans, and cash-flow borrowing costs, ensuring dedicated streams for debt management and liquidity.

  • Miscellaneous

    • Repeals/updates related sections as needed to align with enacted changes.
    • Requires department and treasury coordination for reporting, audits, and oversight of the new funds and grant programs.

Potential impact
- Schools and districts gain additional targeted funding for infrastructure and stabilization, with explicit protections against proration when funds are constrained.
- Infrastructure grants prioritize districts with higher need and disadvantaged student populations, but with explicit caps and reporting requirements.
- The membership/count framework remains complex and highly technical; changes could affect per-pupil funding, especially for specialized programs (cyber/virtual schools, middle college, special education, and cross-district enrollments).
- Overall, the bill aims to enhance financial stability, streamline infrastructure investment, and refine how student counts translate into state aid.

Compiled from official sources — confirm details with the bill’s official record.

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