House subcommittee backs House substitute for school-aid budget that rolls many categorical funds into larger per-pupil payments

The House Appropriations Subcommittee on School Aid and the Michigan Department of Education adopted the H-1 substitute for HB 45 77 on a voice/roll-call vote and voted to report the substitute to the full Appropriations Committee.

The substitute would set total House school-aid appropriations at about $21.9 billion — an increase the House fiscal staff described as roughly $1.1 billion, or about 5.5% above the year-to-date level — while rolling multiple categorical appropriations into a larger per-pupil foundation payment. "The chair's recommendation proposes a total of 21.9 billion dollars," Jacqueline Mullins, senior fiscal analyst for the House Fiscal Agency, told the subcommittee.

Why it matters: The roll-up changes how money is allocated to districts, consolidating many categorical grants into a single per-pupil payment and adding new statewide requirements tied to that payment. Supporters said the change simplifies funding and raises the per-pupil foundation; critics warned it may shift money away from districts or programs with above-average costs.

What the substitute does: House fiscal staff said the substitute would raise the foundation allowance from $9,608 per pupil to $10,025 per pupil and includes cyber schools in that calculation. The plan…