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SB 183

State Department of Assessments and Taxation - Notification of Constant Yield Tax Rate - Alteration

2025 Regular Session

SB 183 provides supplemental 2025–26 funding for K–12 and community colleges, sets monthly school aid payments, and authorizes reserve funds to stabilize education financing.

Approved by the Governor - Chapter 72
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Bill Summary · SB 183

SB 183 (Michigan) — Supplemental Appropriations in the State School Aid Act (FY 2025–2026)

Status: Introduced January 23, 2025; referred to the Senate Committee on Appropriations
Statute amended: Sections 11, 17b, 201, 206, 236 & 241 of 1979 PA 94 (MCL 388.1611 et seq.) — the State School Aid Act of 1979

Main purpose / intent

SB 183 is a supplemental, omnibus appropriations bill that modifies the School Aid Act for the fiscal year ending September 30, 2026. It (1) makes specific supplemental dollar appropriations and funding authorizations for K–12 and certain other education programs, (2) updates payment and administrative provisions for state school aid distributions, and (3) sets community college appropriations and related allocations.

Key provisions and changes

  • Total appropriations (FY 2025–26): the bill appropriates funds for public schools and related education purposes from multiple sources, including the State School Aid Fund and the general fund. Key amounts identified in Section 11 include:

    • $17,769,551,300 from the State School Aid Fund
    • $78,830,600 from the General Fund
    • Authorizations (amounts not to exceed) from several reserve or trust funds:
    • up to $41,000,000 — Community District Education Trust Fund
    • up to $125,000,000 — School Transportation Fund
    • up to $71,000,000 — Enrollment Stabilization Fund
    • up to $30,000,000 — School Meals Reserve Fund
    • up to $18,000,000 — Great Start Readiness Program Reserve Fund
    • up to $334,100,000 — MPSERS retirement obligation reform reserve fund
    • up to $30,000,000 — Educator Fellowship Public Provider Fund
    • All available federal funds are appropriated only as allocated in the article.

  • Payment timing and flow (amend Sec. 17b):

    • Monthly distribution schedule for districts and intermediate districts on or about the 20th of each month (Oct–Aug); installments generally 1/11 of annual entitlement.
    • July/August payments must be accrued to the prior school fiscal year.
    • Clarifies payment mechanisms (warrants or electronic funds transfer) and allows adjustments through additional payments when law changes or errors occur.
    • Superintendent (with concurrence of state treasurer and budget director) may authorize limited advance releases (not earlier than 30 days before established payment date) for districts with temporary, non-recurring needs.

  • Community college appropriations (amend Sec. 201):

    • Gross appropriation cited: $462,220,800 (sources and allocations described).
    • Operations allocation total ~$363.4 million, with line‑item allocations for individual community colleges (Alpena, Bay de Noc, Delta, etc.) and funding components (operations, performance funding, tuition waivers).

  • Other sections amended (206, 236, 241): the bill updates statutory cross‑references and program‑specific appropriation language across the School Aid Act (full text includes specific line‑items and program allocations not all reproduced here).

Who is affected

  • Local school districts and intermediate school districts (cash flow, grant payments, specific program funding)
  • Public K–12 students (through program funding: transportation, meals, early childhood, educator supports)
  • Community colleges (operations and performance funding allocations)
  • State fiscal offices and departments (Department of Education, State Treasurer, Budget Office) — administrative and payment responsibilities
  • Beneficiaries of reserve funds and prior commitments (e.g., MPSERS, educator fellowship)

Fiscal and procedural notes / timeline

  • Fiscal year covered: ends September 30, 2026 (FY 2025–26).
  • The bill specifies funding sources and limits for several reserve accounts rather than creating new permanent programs.
  • Procedural status: introduced 1/23/2025 and referred to the Senate Appropriations Committee; subject to committee review/amendment before potential floor action.
  • Any unexpended General Fund allocations under the article are to be transferred to the School Aid Stabilization Fund at year end.

Practical effect

If enacted, SB 183 provides supplemental resource authorizations and cash‑flow provisions intended to implement and stabilize K–12 and community college funding for FY 2025–26, clarifies monthly distribution mechanics, and authorizes the use of specified reserves to meet targeted education funding needs. The bill is largely technical and allocative: it specifies how much and from which state funds education entities may be paid and when.

(Prepared from text of SB 183 as introduced/amending MCL 388.1611 et seq., January 2025.)

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

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