School aid: foundation allowance; foundation allowance amounts; base on the state and local government inflation index and tie to inflation. Amends sec. 367b of 1984 PA 431 (MCL 18.1367b).

2025-2026 Regular Session Introduced by Matt Koleszar and 7 co-sponsors

HB 6075 links the adequate foundation allowance to DCPI inflation and requires multi-year forecasts for foundation funding and students with additional needs.

bill electronically reproduced 06/10/2026

#schoolaid:foundationallowance

Overview

HB 6075 is a Michigan bill proposed in the 2025-2026 session that would amend section 367b of the 1984 School Aid Act (PA 431) to adjust how the state determines inflation-linked funding for the foundation allowance and related school-aid forecasts. The bill emphasizes tying the foundation allowance to inflation measured by the Detroit Consumer Price Index (DCPI) and expands forecasting duties for the annual revenue estimating conference (REC).

Purpose andintent

Establish a more explicit link between school funding and inflation by basing the “adequate foundation allowance” on a fixed formula tied to DCPI.

Require the REC to produce forecasted levels for the foundation allowance and for students with additional needs, with projections for the current and next two fiscal years.

Ensure that revenue and expenditure forecasts used for budgeting reflect current law and administrative procedures.

Key provisions and changes

Revenue Estimating Conference (REC) schedule and composition:

Recurs in January and May each year; principals include the state budget director or state treasurer, and the directors of the Senate and House fiscal agencies (or their designees).
Must develop official forecasts for major revenue categories and for the target foundation allowance, among other indicators.

Foundation allowance formula:

The adequate foundation allowance is set at:
$9,590 plus
$9,590 multiplied by the percentage change in the Detroit CPI from 2018 to the most recent year available, with a cap not to exceed the most recent fiscal year.
This creates an inflation-adjusted floor for per-pupil funding.

Forecasting requirements:

The REC must produce:
Adequate foundation allowance projections for the current and next two fiscal years.
Forecasts for students with additional needs (including economically disadvantaged, English learners, students with disabilities, and Great Start Readiness participants) for the same three-year horizon.
Projections must be made using the DCPI data and reflect the fiscal year in which the conference is held and the two following years.

Forecast methodology:

Forecasts are to be developed by consensus among the conference principals and assume current law and procedures remain in effect.
The REC also forecasts general fund/general purpose revenue and school aid fund revenue trend lines for the next two years, and Medicaid/human services expenditures for the current and next two fiscal years.

Who is affected

State policymakers and budget officials (REC participants and state budget agencies) who prepare and review revenue and expenditure forecasts.

Michigan school districts and students (through foundation allowances and the targeting of additional-needs populations) via inflation-adjusted funding levels.

Stakeholders tracking school funding levels, including those focused on economically disadvantaged, English learner, and special education populations.

Procedural and timeline notes

The bill adds specificity to the timing and content of REC forecasts (January and May meetings; three-year horizon).

It requires use of the DCPI for inflation adjustments in calculating the adequate foundation allowance.

The bill was introduced in June 2026 and referred to the Appropriations Committee, indicating progression within the budget process.

If enacted, HB 6075 would formalize an inflation-linked baseline for school funding and formalize multi-year forecasting to inform appropriation decisions.