Bill
SB 186
SB 186 sets FY2025–2026 funding levels and payment rules for K-12 districts, community colleges, and programs, with targeted reserve use and monthly district payments.
Status: Introduced January 23, 2025; Referred to Senate Committee on Appropriations.
Summary
SB 186 is the Senate omnibus appropriations bill for K‑12 school aid, higher education, and community colleges for Michigan’s 2025–2026 fiscal year. It amends multiple sections of the State School Aid Act of 1979 (MCL 388.1611 et seq.) to set funding levels, payment rules, and related program reserves and allocations for the coming school year.
Main purpose and intent
- Provide statutory appropriations and allocation instructions to fund K‑12 school districts, intermediate districts, community colleges, and certain education programs for FY 2025–2026.
- Establish funding sources, payment timing and mechanics, and special reserve/targeted fund usages (transportation, meals, retirement obligations, early childhood, etc.).
Key provisions and changes
- Aggregate appropriations (introduced version):
- $17,769,551,300 from the State School Aid Fund.
- $78,830,600 from the General Fund.
- Additional authorized draws (amounts “not to exceed”) from multiple reserve/targeted funds, including:
- Community district education trust fund: up to $41,000,000
- School transportation fund: up to $125,000,000
- Enrollment stabilization fund: up to $71,000,000
- School meals reserve fund: up to $30,000,000
- Great Start readiness reserve fund: up to $18,000,000
- MPSERS retirement obligation reform reserve: up to $334,100,000
- Educator fellowship public provider fund: up to $30,000,000
- Payment schedule: Section 17b continues/clarifies monthly installment payments to districts and intermediate districts (payments on or about the 20th of each month; standard allocation 1/11 of annual entitlement). July/August payments are accrued to the prior school fiscal year.
- Administrative provisions:
- Department may make payment adjustments and may authorize limited advance releases for temporary, nonrecurring needs (with concurrence of treasurer and state budget director).
- Unspent General Fund appropriations under the article are transferred to the School Aid Stabilization Fund at fiscal year‑end.
- Community colleges: Section 201 (introduced text) appropriates roughly $462.2 million (gross) for community colleges, specifying the mix of restricted state revenues and a small GF amount and listing college‑by‑college allocations (operating funds, performance funding, certain tuition waiver costs).
- Technical and statutory edits to sections of the School Aid Act to implement the funding, allocations, and program-specific appropriations.
Who is affected
- Primary: Michigan public school districts, intermediate school districts, and community colleges (operating budgets, transportation, meal programs, early childhood and retirement‑related supports).
- Secondary: students, educators, school support staff, parents, and local governments that interact with school finance (e.g., through matching or local tax levies and program delivery).
- Fiscal administrators in the Department of Education, State Treasurer, and state budget offices (payment processing / oversight).
Procedural / timeline notes
- Introduced Jan 23, 2025; referred to Senate Appropriations Committee (as of committee referral noted in bill header).
- This is the introduced (omnibus) appropriation vehicle — figures and specific allocations may change during committee markup, floor amendments, and conference with the House.
- Funding and payment mechanics in the bill would govern FY 2025–2026 (school fiscal year beginning July 1, 2025, in normal practice).
Caveat
This summary is based on the bill as introduced and the version excerpts available. Final funding amounts, program conditions, and statutory language may change during the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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