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HB 4802

Appropriations: supplemental; supplemental payments to rural districts; provide for. Amends sec. 11 & 22d of 1979 PA 94 (MCL 388.1611 & 388.1622d).

2025-2026 Regular Session Introduced by Karl Bohnak and 4 co-sponsors

HB 4802 adds targeted 2025–26 rural, remote, island district aid under the State School Aid Act, with category-based funding to ease high per‑pupil costs.

bill electronically reproduced 08/26/2025
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Bill Summary · HB 4802

HB 4802 — Summary (House Bill, introduced/introduced again Aug 26, 2025)

Status: Introduced March 13, 2025; passed the House May 10, 2025; received by the Senate May 12, 2025; bill text electronically reproduced Aug 26, 2025 and referred to Committee on Appropriations. Sponsors: Reps. Karl Bohnak, Fairbairn, Prestin, Markkanen, Cavitt.

Purpose

Amend the State School Aid Act of 1979 (MCL 388.1611 & 388.1622d) to (1) set supplemental appropriations for public schools for the fiscal years ending September 30, 2025 and September 30, 2026 and (2) revise and fund supplemental payments targeted to rural, low-density, and island school districts.

Key provisions and dollar amounts

  • Amends Section 11 (appropriations) to specify FY 2025 and FY 2026 funding sources and amounts:

    • FY ending Sept 30, 2025: $17,769,551,300 from the State School Aid Fund; $78,830,600 from the General Fund; and specified “not to exceed” amounts from several reserve/trust funds (e.g., up to $334,100,000 from the MPSERS retirement obligation reform reserve; up to $125,000,000 from the school transportation fund; up to $71,000,000 from enrollment stabilization fund; others).
    • FY ending Sept 30, 2026: $12,823,800 from the State School Aid Fund and nominal/token ($100) amounts from other state funds (placeholders).
    • All available federal funds are appropriated only as allocated in the article.
    • General Fund money must be spent before State School Aid Fund money; unspent General Fund allocations revert to the School Aid Stabilization Fund.

  • Amends Section 22d (supplemental rural district payments):

    • Increases the total amount available for supplemental rural payments to up to $12,823,800 for 2025–2026 (changed from $12,306,900).
    • Allocates that total among three categories:
    • Small remote districts (operate K–12, <250 pupils, and each building either in the Upper Peninsula ≥30 miles from another public school building or on an island not accessible by bridge): up to $3,891,200. Distribution determined by a spending plan developed by intermediate superintendents and approved by the State Superintendent.
    • Low-density or very large-area districts (fewer than 10.0 pupils per square mile or districts >250 square miles): up to $8,379,900. Breakdown:
      • $6,349,300 to districts with <8.0 pupils/sq mi on an equal per‑pupil basis.
      • Remaining funds distributed at scaled per‑pupil rates: 75% for 8.0–<9.0; 50% for 9.0–<10.0; districts >250 sq mi with ≥10.0 pupils/sq mi receive 100% of the base per‑pupil amount.
      • Proration rules apply if funding is insufficient; leftover amounts may be reallocated to certain groups.
    • Districts where each school building is on an island accessible by bridge: up to $552,700.
    • Exclusivity: a district receiving funds under one category is ineligible to receive funds under the other categories.

Who is affected

  • Primary beneficiaries: rural, remote, low-density, geographically large, and island school districts in Michigan that meet the eligibility criteria.
  • Intermediate school districts: required to assess financial needs and develop the spending plan for certain eligible districts.
  • Department of Education: responsible for determining pupil density, approving spending plans, allocating/prorating payments, and issuing payments under section 22b protocols.

Procedural / timeline notes

  • The bill amends sections of the State School Aid Act as previously modified by 2024 PA 148 and 2024 PA 120.
  • Passed the Michigan House (May 10, 2025); next steps were Senate referral to the Appropriations Committee (Aug 26, 2025). Final enactment depends on Senate consideration and gubernatorial action.

Impact overview

  • Provides targeted supplemental aid to help offset higher per‑student costs and unique operational challenges in sparsely populated, remote, island, and very large rural districts.
  • Total supplemental rural funding for 2025–2026 is modest relative to statewide school aid but directed to high-need geographic categories with defined eligibility and distribution rules.

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

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