[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6204660,"mediaKeyId","3778470-6f55ebd3eb4031b1300037b0e998ae91","parentId",3778470,"title","House subcommittee advances school-aid plan raising foundation allowance to $10,025 and rolling many categorical funds into per-pupil payments","audioSeconds",983,"startMs",129000,"endMs",1112000,"viewUrl","/Search/View?dp=1&key=3778470-6f55ebd3eb4031b1300037b0e998ae91&start=129&end=1112","thumbnailUrl","https://assets.pipeline.soar.com/3778470-6f55ebd3eb4031b1300037b0e998ae91/thumbnail_129000.jpg","articleUrl","/articles/6204660/Michigan/House-subcommittee-advances-school-aid-plan-raising-foundation-allowance-to-10025-and-rolling-many-categorical-funds-into-per-pupil-payments","mediaUrl","https://secure.pipeline.soar.com/6204660-0705f80e318f5b135d7d5222025871c3/orig.mp4?Expires=1771143147&Signature=iNSsl1Stew~TPuoelc-nVZ3e0Fl3JaLRWEFigGgOaj2wuyodZ~hOg2d2isb8crndfyNJp0im49VhJb-CyLETwkhobtyoVjcJtJYMSyRK7UuLPGyXBpGJmyhEwh3gyiSev9P6BNWGR5EaiwCqpoCDN-AFg73eEeOfRcrTj31s5VKeVe-lHKZIZuaVXRz8wlO2cldp~MBW~Z6WN05CGF2Y1NRjEm9Vl0LeD3ik~Nl5zIq3F1WJQa5zHcuOSBU9v-iBdvdqMohl3YAuutWmTHGK8cvuRUWC11V9uOBikHqfxrsrcV-l5RKoVAVNGpXZdUm7lnbdS1Yr796r7lNqnT0Gjg__&Key-Pair-Id=KUT5TJCACFTXG","author","Michigan Legislature","date","2025-06-12T03:29:40.55Z","article","The House Appropriations Subcommittee on School Aid and Department of Education advanced a school-aid budget that would raise the per-pupil foundation allowance to $10,025 and roll dozens of categorical programs into a single per-pupil payment, members and fiscal analysts said.

The measure before the panel is the House substitute for HB 45 77 (H-1). Jacqueline Mullen, senior fiscal analyst for the House Fiscal Agency, told the committee the chair’s recommendation proposes total school-aid appropriations of about $21.9 billion, a $1.1 billion (5.5%) increase from the year-to-date level, and that the House proposes a $417 (4.3%) per-pupil increase to lift the foundation allowance from $9,608 to $10,025 per pupil.

Why it matters: The proposal shifts funding away from many existing categorical line items and into a larger foundation allowance intended to give districts more flexible per-pupil funding. Fiscal staff said the proposal rolls that previously categorical money into a new section 22f payment that is split among districts, intermediate school districts (ISDs) and nonpublic schools and that the rollup will alter how specific, targeted programs are funded.

Key provisions and figures
- Foundation allowance: Raises the foundation allowance to $10,025 per pupil (a $417 / 4.3% increase from $9,608). Jacqueline Mullen presented this as the house proposal’s central per-pupil increase.
- Section 22f rollup: The bill consolidates many categorical appropriations into a new per-pupil payment (section 22f). Fiscal staff described a table showing how year-to-date categorical appropriations were rolled into the single payment and how the rollup is allocated across districts, ISDs and nonpublic schools.
- School safety and mental health funding: The proposal moves $370 million in school-safety and mental-health funding (including a $345 million supplemental addition on top of ongoing funding) into the district per-pupil bucket and a smaller amount to nonpublic schools; committee discussion tied that rollup to a requirement in section 22f that districts support at least one school resource officer (SRO) and one mental-health support staff member to receive the funding.
- Hold-harmless (section 22h): The plan creates section 22h, a hold-harmless payment intended to prevent districts and ISDs from taking reductions from the rollup; Mullen said the bulk of that $138.8 million total would go to ISDs.
- Reserve fund transfers and closings: The House plan deposits balances from multiple reserve funds into the school-aid fund and, in some cases, closes those funds. Mullen listed specific deposits: $147.4 million (estimated) from the MPSERS reserve fund; $120.3 million from the school transportation fund; $235.2 million from the educator fellowship public provider fund; $50.8 million from the educator fellowship private provider fund; $193.6 million from the enrollment stabilization fund; $138.6 million from the school meals reserve fund; and $265.8 million from the school-aid rainy day fund (leaving about $209 million remaining in that rainy day fund, the analyst said).
- One-time uses of the school consolidation and infrastructure fund: The bill would spend remaining FY26 balances from that fund on four priorities: competitive infrastructure grants prioritizing roofing and HVAC; competitive consolidation grants for physical or service consolidation; a per-pupil incentive for reducing class sizes; and a per-pupil incentive for implementing a Read-By-Grade-3 program that would include at least one literacy coach in participating districts.
- MPSERS (retiree pension) treatment: The house plan assumes a policy change will maintain the unfunded liability cap at 20.96% of payroll rather than lowering it to the 15.22% level that had been anticipated; staff said the effect is that districts would continue to pay 20.96% and the state would not appropriate the additional funds to assume that portion of the liability.

Committee discussion and concerns
- Equity vs. targeted help: Several members questioned whether rolling targeted dollars into a statewide per-pupil payment would disadvantage districts with extraordinary, district-specific costs. Representative Glanville asked about Flint-specific funding tied to the Flint declaration of emergency; fiscal staff said the $8.1 million currently appropriated for Flint (split $5.0 million SAF to districts and $3.1 million GF to nonpublic schools) was rolled into the per-pupil payment, which spreads the dollars statewide rather than directing them only to Flint.
- School safety conditions: Members asked whether the state has sufficient SROs to meet the proposed requirement that each district support at least one SRO to access a portion of the funding; the committee discussed whether a district’s own security team could satisfy that condition.
- Timing and detail: Several members said they received bill text and summaries only shortly before the hearing and asked for more time to review the rollup table and other details.

Formal actions
- The committee adopted the H-1 substitute for HB 45 77 on a roll call after a motion by Representative Jenkins Arnold; the substitute was adopted by recorded voice/roll call during the meeting.
- The committee later voted to report HB 45 77 H-1 to the full Appropriations Committee with the recommendation that it pass. Recorded votes on reporting included majority yes votes; a minority of members voted no. (See structured actions below for recorded tallies.)

What remains unresolved
The bill would move many targeted programs into the foundation allowance; committee members repeatedly requested more time and data to assess how specific district needs (transportation, special programs, disaster-related costs) would be met under the new structure. Negotiations with the Senate and governor’s office were mentioned as the next steps.

Ending note
Fiscal staff asked the committee to refer to the rollup table in the summary (page 25 of the document presented) for line-by-line detail on which sections were consolidated into section 22f and how the baseline and rolled-up amounts were calculated.","mediaType","Video","parentTitle","Appropriations - School Aid and Department of Education - 6/11/2025","oneSentenceSummary","The House Appropriations Subcommittee on School Aid and Department of Education advanced a school-aid budget that would raise the per-pupil foundation allowance to $10,025 and roll dozens of categorical programs into a single per-pupil payment, members and fiscal analysts said.","taxTitle","2025 House Legislature MI, Michigan","taxId",77683,"location","Michigan","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6204655,"House subcommittee advances Department of Education budget with staff cuts, boilerplate restrictions and new reporting requirements",235,1194000,1429000,"/Search/View?dp=1&key=3778470-6f55ebd3eb4031b1300037b0e998ae91&start=1194&end=1429","https://assets.pipeline.soar.com/3778470-6f55ebd3eb4031b1300037b0e998ae91/thumbnail_1194000.jpg","/articles/6204655/Michigan/House-subcommittee-advances-Department-of-Education-budget-with-staff-cuts-boilerplate-restrictions-and-new-reporting-requirements","https://secure.pipeline.soar.com/6204655-24968ec895020740b9a570eec7087d01/orig.mp4?Expires=1771143147&Signature=iPiT243CHte0K-5Yuju4ZOZkz9mffbymIGk2Q~1paffLz-y0K9pb76Ny-2W62fZMnlYkEpBRE1eraexxVpqyUyGhdPomh5wu9Kjn-zkKmVGeD6wR70zg3E7dK2MLbgzcWw1uXOZ3G7yjNijZZ2CKd1dPnkOupp9rDfBF0WLVzJYc8DWwR8YQWmcwdnTZ6iWvYJj6PGJuLBIrxjUrni~AJHTHj-5be6oB-s-OmRMPg~7CfGAiM6xl4MHO301Yqev5IXLjUUinpUsb1A5pi3g5PMH5Kq97OljUxGXRI6VMG6hZQ77aRayRrXMsnJC~p6~llh5OxaS7WGeXepO7CjdlSQ__&Key-Pair-Id=KUT5TJCACFTXG","The House Appropriations Subcommittee on School Aid and Department of Education advanced the Department of Education appropriation, H‑1 substitute for HB 45 76, a proposal House fiscal analysts said would reduce overall gross spending and authorization while adding several new boilerplate requirements.

Noel Benson, fiscal analyst with the House Fiscal Agency, told the committee the department proposal reduces the budget from the year-to-date level by about $31.7 million, including roughly $17.3 million in general fund, $8.0 million in restricted funds and $6.3 million in federal funds, and reduces about 118 full-time positions (FTEs) in the department’s authorization.

Major program and boilerplate changes highlighted by fiscal staff
- Teacher certification fees: The budget removes $8.0 million in restricted revenue tied to teacher certification fees because HB 41 50 (previously passed by the House) eliminates those fees; fiscal staff said the proposal also removes about 30 FTEs associated with the function.
- Vacant FTEs and program eliminations: The proposal removes authorization for 65 currently vacant FTEs (including positions across educator excellence, accountability services, school support and education support operations) and eliminates the library services and technology program (about $5.6 million and 1 FTE) and partnership district support (about $3.6 million and 13 FTEs), fiscal staff said.
- Office consolidations and IT reductions: The Office for Strategic Planning and Implementation operations authorization and funding were reduced (including roughly $1.2 million gross and 6 FTEs), and IT was reduced via a 15% across-the-board reduction and additional reductions tied to the certification-fee change.
- Boilerplate and compliance requirements: Benson highlighted several new or restored boilerplate sections that would impose operational and reporting requirements on the department, including:
- Reauthorization for inter‑transfer of funds within the department by concurrent resolution of the State Administrative Board (section 2.17), and a requirement to publish a quarterly department performance scorecard on the MDE website (section 2.20).
- Limits on using appropriated funds for court-approved judgments or settlements in excess of $200,000 (section 2.21).
- A requirement for MDE employees to work in person five days per week and to report each morning if they have field work; a policy requirement to ensure employees are working during normal business hours (section 2.26).
- Conditions and quarterly reporting on grant awards and a requirement that contractors and subcontractors use the federal E-Verify system for hires during the contract period (sections 2.27–2.28).
- Restrictions on using state or federal funds on programs for noncitizens unless the noncitizen is a qualified alien or the funds are used to detain noncitizens in jails/correctional facilities (section 2.29).
- Language described (section 2.31) that would restrict MDE from using any funds on diversity, equity and inclusion (DEI) programs.
- Educator preparation and training changes: The house proposal would add nonpublic schools as eligible recipients of educator-preparation funds (a 100,000 set-aside was referenced, transcript noted the analyst would confirm the exact amount) and would strike implicit-bias training as an eligible expense for school‑board training (section 6.02), fiscal staff said.

Committee questions
Representative Glanville and others questioned a number of the cuts and boilerplate changes; concerns included the timing of the reductions, the impacts of eliminating partnership district supports, and the new restrictions on DEI and on the use of funds for noncitizen services. Benson acknowledged some figures were estimates and offered to provide clarifying follow-ups.

Formal actions
The subcommittee adopted the H‑1 substitute for HB 45 76 on a roll call and later reported it to the full Appropriations Committee with the recommendation that it pass. Members recorded both yes and no votes during the reporting roll call; the substitute was reported despite several no votes.

Ending note
Fiscal staff asked for questions and offered to provide additional detail or clarifications in follow-up materials.","The subcommittee approved the H‑1 substitute for the Department of Education appropriation (HB 45 76 H‑1), which reduces authorization, eliminates certain programs and adds boilerplate restricting use of funds for DEI initiatives and introducing new reporting and personnel policies, fiscal staff said.","actionData","errors"]

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House subcommittee advances school-aid plan raising foundation allowance to $10,025 and rolling many categorical funds into per-pupil payments

House subcommittee advances Department of Education budget with staff cuts, boilerplate restrictions and new reporting requirements