Education: financing; requirements concerning taxes levied for area career and technical education programs; modify. Amends secs. 681 & 684 of 1976 PA 451 (MCL 380.681 & 380.684).

2025-2026 Regular Session Introduced by Brian BeGole and 15 co-sponsors

Allows ISDs to contract CTE programs with other ISDs or private providers and spend millage revenue on contracted operations.

REFERRED TO COMMITTEE ON EDUCATION

#education:careerandtechnical #education:financing #education:intermediateschooldistricts

HB 4060 — Summary (Education: financing; ISD CTE millage uses; modify)

Sponsor: Rep. Curt S. VanderWall

Statutory changes: Amends sections 681 and 684 of the Revised School Code (MCL 380.681 & 380.684)

Subject: Career & technical education (CTE) financing, intermediate school districts (ISDs)

Introduced: February–March 2025; Passed the House March 12, 2025 (immediate effect); referred to Committee on Education; reported favorably without amendment (May 7, 2025)

Purpose / Intent

The bill clarifies and expands how proceeds from an ISD voter-approved millage for area career and technical education (CTE) programs may be used. It permits ISDs greater flexibility to contract for CTE program operation and to spend millage revenue to pay costs for programs operated under such contracts.

Key provisions

Allows an ISD that has established an area CTE program to contract with another ISD (inside or outside the MDE‑designated service area) for the entire or partial operation of that CTE program. (Amends MCL 380.681.)

Explicitly authorizes money raised by an ISD CTE millage to be spent on programs operated under contract with another ISD. This authorization applies to millage dollars collected in school years beginning after the bill’s effective date.

Removes a dated restriction: an ISD that is not located within a community college district may contract with a private post‑secondary degree‑granting institution for CTE program operation without needing to have had a written agreement in place on or before July 1, 1992.

Maintains existing constraints on CTE millage levies (historical mill limitations based on 1993 levies) and retains audit, reporting, and enforcement requirements:

ISDs must submit the audit report to the Department of Treasury.
If the Department of Treasury determines millage proceeds were misused, appeal and remediation procedures apply; unresolved findings are referred to the Attorney General and may result in civil recovery.
ISDs must publish audit results on their website within 30 days.

Who is affected / likely impacts

Intermediate school districts: Gain flexibility to contract with neighboring ISDs or private post‑secondary institutions and to use CTE millage revenue for contracted program costs; may reduce local operating costs or allow new millage-supported participation arrangements.

Local school districts and public school academies: May have expanded access to CTE programs provided through inter‑ISD contracts.

Community colleges and private post‑secondary institutions: Potential partners for ISD‑contracted CTE programming (including ISDs previously restricted by the 1992 written‑agreement rule).

Voters/taxpayers: The change affects how approved CTE millage revenues can be spent but does not change millage levy limits set by vote.

Procedural history / next steps

Introduced in early 2025 (sponsored by Rep. VanderWall).

Passed the Michigan House March 12, 2025 (immediate effect noted).

Referred to Committee on Education; committee reported the bill favorably without amendment on May 7, 2025.

If enacted, provisions affecting millage spending apply to school years starting after the bill’s effective date.

Bill