Bill
SB 859
Provides supplemental education funding for 2025-2026 with defined fund sources, priorities, and a quarterly, adjustable payment schedule to districts.
Executive overview:
- Bill type: Supplemental appropriations (amendments to the Michigan State School Aid Act of 1979)
- Purpose: Adjust and reaffirm supplemental appropriations to public schools and education-related state purposes for fiscal years ending September 30, 2025 and September 30, 2026. It revises the allocation and timing framework within the school aid act and clarifies fund sources for the 2025-2026 budget year.
- Introduced by: Senator Camilleri (March 18, 2026)
- Current status: Reassigned to Committee on Appropriations (as of April 14, 2026)
What the bill seeks to do (main intent)
- Provide supplemental appropriations for education in the fiscal years ending 2025 and 2026.
- Specify the fund sources and total amounts allocated to public schools and related education purposes for those years.
- Clarify the timing and mechanism of state school aid payments to school districts and intermediate districts, and allow for adjustments to payments if needed.
Key provisions and changes
1) Sec. 11 — Supplemental appropriations for FY 2025 and FY 2026
- FY ending September 30, 2025:
- Total appropriations from various funds (all for education-related purposes):
- State School Aid Fund: $17,936,546,300
- General Fund: $78,830,600
- Community District Education Trust Fund (maximum): up to $41,000,000
- School Transportation Fund (maximum): up to $125,000,000
- Enrollment Stabilization Fund (maximum): up to $71,000,000
- School Meals Reserve Fund (maximum): up to $30,000,000
- Great Start Readiness Program Reserve Fund (maximum): up to $18,000,000
- MPSERS Retirement Obligation Reform Reserve Fund (maximum): up to $481,400,000
- Educator Fellowship Public Provider Fund (maximum): up to $30,000,000
- Note: All available federal funds are appropriated only as allocated in this article for FY years ending 2025 and 2026.
2) Sec. 11 (allocation priority)
- General Fund money allocated under this article must be expended to fund the purposes of the article before funds from the State School Aid Fund.
3) Sec. 11 (unexpended funds)
- Any general fund allocations not expended by the end of the fiscal year are transferred to the School Aid Stabilization Fund (Sec. 11a).
4) Sec. 17b — Payment schedule and administration
- Establishes a quarterly installment schedule for district and intermediate district allocations:
- Not later than the 20th of each month from October through August, the department prepares electronic files of the amount to be distributed and sends them to the State Treasurer.
- The State Treasurer pays on those dates (or the next business day if a date falls on a non-business day). Each installment is typically 1/11 of the district’s annual entitlement, with July and August payments accruing to the prior school fiscal year.
- Payment method:
- The Treasurer issues warrants or makes electronic funds transfers to the district/intermediate district treasurer, or to a specified account if requested.
- Adjustments:
- The department may adjust payments through additional payments if changes in law or computation errors would otherwise underpay districts relative to their entitlement.
- Advance releases:
- Upon written request and with approvals from district, State Treasurer, and Budget Director, an advance may be authorized for temporary, nonrecurring needs, but not more than 30 days earlier than the established payment date.
Who is affected
- Public school districts and intermediate districts in Michigan receiving per-pupil/state aid allocations.
- State agencies administering the School Aid Fund, the General Fund for education purposes, and all listed reserve and special funds (e.g., School Transportation, Great Start Readiness, MPSERS-related reserves, etc.).
- Districts seeking potential advances for temporary needs (subject to approval).
Timeline and procedural notes
- FY 2025 and FY 2026 appropriation amounts are specified; the law contemplates distribution across months in 2025-2026 with 11 equal installments, plus adjustments as needed.
- Any unspent General Fund allocations revert to the School Aid Stabilization Fund at year-end.
- The bill was introduced March 18, 2026, with Committee reassignment in April 2026.
Overall impact
- Provides a structured framework for additional or supplemental education funding for the specified years, clarifies fund sources and priorities, and tightens payment timing and potential adjustments to ensure districts receive their entitled funds in a timely manner.
Compiled from official sources — confirm details with the bill’s official record.
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