part 1

line-item appropriations

Sec. 101. There is appropriated for the department of lifelong education, advancement, and potential for the fiscal year ending September 30, 2026, from the following funds:

DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL
APPROPRIATION SUMMARY

Full-time equated unclassified positions	6.0
Full-time equated exempted positions	348.0
GROSS APPROPRIATION		$	756,217,000
ADJUSTED GROSS APPROPRIATION		$	756,217,000
Total federal revenues:			506,428,200
Total private revenues			1,000,000
Total other state restricted revenues			1,880,000
State general fund/general purpose		$	246,908,800
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	38.0
Unclassified salaries--FTEs	6.0	$	1,029,500
Executive direction and operations--FTEs	38.0		7,852,200
Property management			268,800
Worker's compensation			3,000
GROSS APPROPRIATION		$	9,153,500
Appropriated from:
Federal revenues:
Total federal revenues			1,027,700
State general fund/general purpose		$	8,125,800
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects		$	1,004,100
GROSS APPROPRIATION		$	1,004,100
Appropriated from:
Federal revenues:
Total federal revenues			223,700
State general fund/general purpose		$	780,400

Sec. 104. OFFICE OF EARLY CHILDHOOD EDUCATION
Full-time equated classified positions	244.0
Child care licensing and regulation--FTEs	172.0	$	30,237,600
Child development and care contracted services			22,900,000
Child development and care external support			11,028,800
Child development and care public assistance			585,035,800
Head start collaboration office--FTE	1.0		426,600
Office of great start operations--FTEs	71.0		17,818,500
Tri-share child care program			3,400,000
GROSS APPROPRIATION		$	670,847,300
Appropriated from:
Federal revenues:
Federal funds			505,176,800
Total federal revenues			505,176,800
Special revenue funds:
Private foundations			1,000,000
Certification fees			64,600
Child care home and center licenses fund			501,700
State general fund/general purpose		$	164,104,200
Sec. 105. OFFICE OF EDUCATION PARTNERSHIPS
Full-time equated classified positions	15.0
Before and after school administration--FTEs	2.0	$	371,200
Camp licensing unit--FTEs	7.0		700,300
Family and community engagement--FTEs	6.0		2,383,200
GROSS APPROPRIATION		$	3,454,700
Appropriated from:
Total other state restricted revenues			42,900
State general fund/general purpose		$	3,411,800

Sec. 106. OFFICE OF HIGHER EDUCATION
Full-time equated classified positions	51.0
Michigan Indian tuition waiver--FTE	1.0	$	159,700
Reenrollment recruitment			2,000,000
Student financial assistance programs--FTEs	50.0		9,597,700
GROSS APPROPRIATION		$	11,757,400
Appropriated from:
Special revenue funds:
Michigan merit award trust fund			1,270,800
State general fund/general purpose		$	10,486,600
Sec. 107. ONE-TIME APPROPRIATIONS
Child development and care public assistance		$	40,000,000
College success fund and student wraparound supports			16,000,000
Dual enrollment task force			10,000
Expansion grants			3,990,000
GROSS APPROPRIATION		$	60,000,000
Appropriated from:
State general fund/general purpose		$	60,000,000

part 2

provisions concerning appropriations

for fiscal year 2025-2026

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2026, total state spending under part 1 from state sources is $248,788,800.00 and state spending under part 1 from state sources to be paid to local units of government is $8,500,000.00. The

following itemized statement identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL
College success fund and student wraparound supports	$	8,500,000
TOTAL	$	8,500,000

Sec. 202. The appropriations under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this part and part 1:

(a) "Department" means the department of lifelong education, advancement, and potential.

(b) "DHHS" means the Michigan department of health and human services.

(d) "FTE" means full-time equated.

(e) "IDG" means interdepartmental grant.

(f) "Standard report recipients" means the senate and house appropriations subcommittees on the department, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

(g) "Task force" means the dual enrollment task force created under section 1103.

Sec. 204. A department or agency shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the standard report recipients and any other required recipients by email and posting the reports on an internet site.

Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply to the expenditure of funds appropriated in part 1:

(a) The funds must not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.

(c) Preference must be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

(d) Preference must be given to goods or services, or both, that are manufactured in facilities that employ union members.

Sec. 206. The department shall not take disciplinary action against an employee of the department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The department shall submit the report to the standard report recipients and to the senate and house

appropriations committees. The report must include all of the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related expenses of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, and other revenues.

Sec. 208. A principal executive department, state agency, or authority shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $10,000,000.00 for federal contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $500,000.00 for state restricted contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $350,000.00 for local contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,000,000.00 for private contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 211. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for the department:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

Sec. 212. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 213. (1) Except as otherwise provided in this part, all reports required under this part must be submitted to the standard report recipients.

(2) For each report listed on the department's website, the department shall provide a reference to each statutory or appropriations bill section and, if applicable, subsection where that report is required.

(3) In addition to the reporting requirements in section 204 and this section, the department shall compile, post, and maintain all required reports on an easily accessible page of the department's website.

Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically-disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified geographically-disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically-disadvantaged business enterprises" means that term as defined in Executive Directive No. 2023-1.

Sec. 216. On a quarterly basis, the department shall report on the number of full-time equated positions in pay status by civil service classification, including a comparison by line item of the number of full-time equated positions authorized from funds appropriated in part 1 to the actual number of full-time equated positions employed by the department at the end of the reporting period. The report must be submitted to the senate and house appropriations committees and to the standard report recipients.

Sec. 218. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of records. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 219. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the previous calendar year. The department shall submit the report to the standard report recipients, to the senate and house appropriations committees, and to the joint committee on administrative rules.

Sec. 221. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of the local health officer.

Sec. 222. To the extent possible, the department shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.

Sec. 223. (1) General fund appropriations in part 1 must not be expended for items if federal funding or private grant funding is available for the same expenditures.

(2) If the department is required to make a reduction in expenditures under section 395(1) or (2) of the management and budget act, 1984 PA 431, MCL 18.1395, for any appropriations under this part or part 1, the department must notify the standard report recipients not later than 10 days after the reduction. The notification must include, but not be limited to, the following:

(a) A description of the fund source that is insufficient to support the expenditures being reduced and the amount of the reduction.

(b) A description of the cause for the reduction, if any such cause is shown.

Sec. 224. (1) For any grant program or project funded in part 1 intended for a single recipient organization or unit of local government, the grant program or project is for a public purpose and the department shall follow procurement statutes of this state, including any bidding requirements, unless the department can fully validate, through information detailed in this part or public supporting documents, both of the following:

(a) The specific organization or unit of local government that will receive or administer the funds.

(b) How the funds will be administered and expended.

(2) To be eligible to receive a grant described in subsection (1), both of the following must occur:

(a) A recipient must submit the application under subsection

(3) not later than 60 days after the effective date of this act.

(b) A recipient must be 1 of the following:

(i) A unit of local government, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(ii) An institution of higher education.

(iii) A state agency, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(iv) An entity registered with the department of licensing and regulatory affairs or the department of attorney general that has been in existence for at least the 12 months preceding the effective date of this act.

(v) Another entity that can demonstrate, through state or federal tax filings or other state or federal government records, that it has been in existence for at least the 12 months preceding the effective date of this act.

(3) Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall work with the state budget office to perform at least all of the following activities to administer the grants described in subsection (1):

(a) Develop a standard application process using the electronic submission portal developed by the state budget office, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (4). If the electronic submission portal identified in this subdivision is not fully functional by 60 days after the effective date of this act, the state budget office shall ensure that the standard application process and form are available promptly and paper submission is acceptable. The state budget

office shall promptly submit application material received to the department for departmental review.

(b) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The department shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.

(c) Verify to the extent possible that a grant recipient will use funds for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.

(d) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The department may deduct the cost of background checks and any other efforts performed as part of this verification from the amount of the designated grant award.

(e) Establish a standard timeline to review all documents submitted by grant recipients and provide a response within 45 business days stating whether submitted documents by a grant recipient are sufficient or in need of additional information. If additional information is needed, the 60-day deadline in subsection (2) is considered to have been met if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(f) Make an initial disbursement of up to 50% of the grant to the grant recipient not later than 60 days after a grant agreement has been executed. Disbursements must be consistent with part II,

chapter 10, section 200 of the Financial Management Guide.

(g) Disburse the funds remaining after the initial disbursement under subdivision (f) per the grant disbursement schedule in the executed grant agreement on a reimbursement basis after the grantee has provided sufficient documentation, as determined by the department, to verify that expenditures were made in accordance with the project purpose.

(4) The process for the identification and sponsorship of a grant described in subsection (1) is as follows:

(a) Not later than the effective date of this act, the state budget office shall provide an initial list of grants that require legislative sponsorship to the legislature and shall make public an initial list of grants that likely will be sponsored by the department or by the state budget office.

(b) A sponsor of a grant described in subsection (1) must be a legislator, the department, or the state budget office.

(c) A legislative sponsor must be identified through a letter submitted by that legislator's office to the department and state budget director containing the name of the grant recipient, the intended amount of the grant, a certification from that legislator that the grant is for a public purpose, and specific citation of the section and subsection of the public act that authorizes the grant, as applicable.

(d) Within 10 business days after the effective date of this act, the senate and house of representatives shall compile an initial list of legislative grant sponsors for their respective chambers and submit those compiled lists to the state budget office and the department, and the state budget office shall identify department- or state budget office-sponsored grants. The state

budget director may grant an extension of this deadline of not more than 30 days on a case-by-case basis. The state budget office shall make the compiled lists public within 14 business days after the effective date of this act.

(e) Not later than 60 days after the effective date of this act, the state budget office shall publish a final list of grants requiring sponsorship. If a legislative sponsor is not identified within 60 days after the effective date of this act, the department shall do 1 of the following:

(i) Identify the department or the state budget office as the sponsor.

(ii) Decline to execute the grant agreement and lapse the associated funds at the end of the fiscal year.

(f) At any point during the fiscal year, legislative grant sponsors may be added to a grant request.

(5) An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:

(a) All necessary identifying information for the grant recipient, including any tax and financial information for the department to administer funds under this section.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. The department shall not reimburse expenditures that are outside of the project purpose, as stated in the executed grant agreement, from appropriations in part 1. The grantee shall return to the treasury any interest in excess of $1,000.00 earned on the grant funds while unexpended and in possession of the grantee.

requirement that funds appropriated for the grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of this act.

(d) A requirement for reporting by the grant recipient to the department and the legislative sponsor that provides the status of the project and an accounting of all funds expended by the grant recipient, as determined by the department.

(e) A claw-back provision that allows the department of treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(f) The signed legislative sponsorship letter required under subsection (4), incorporated into the grant agreement and included as an appendix or attachment.

(g) If a grant recipient has provided information sufficient to execute a grant agreement, the state budget office shall promptly transmit that information to the department for the department's review of the grant application. If a grant recipient has provided information sufficient to execute a grant agreement within 60 days after the effective date of this act, but the grant application needs technical fixes or additional legislative action, as identified by the state budget office, the 60-day deadline in this subdivision is considered to have been met if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(6) If appropriate to improve the administration or oversight of a grant described in subsection (1), the department may adopt a

memorandum of understanding with another state department to perform the required duties under this section.

(7) A grant recipient shall respond to all reasonable information requests from the department related to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to monitoring, site visits, and audits as determined by the department. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient that the requirements of this subsection will be met.

(8) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2030. If at that time any unexpended funds remain, the grant recipient shall return those funds to the state treasury.

(9) Any funds that are granted to a state department are appropriated in that department for the purpose of the intended grant.

(10) The state budget director may, on a case-by-case basis, extend the deadline in subsection (8) on request by a grant recipient if a sponsor has been identified for the grant. The state budget director shall notify the chairs of the senate and house of representatives appropriations committees not later than 5 days after an extension is granted.

(11) By March 1 of the current fiscal year, the state budget office shall post a report in a publicly accessible location on its website. The report must list the grant recipient, project purpose, and location of the project for each grant described in subsection (1), the status of funds allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. After March

1, the state budget office shall update the report monthly and shall post the updated report each month. The state budget office shall include in the report the most comprehensive information the office has available at the time of posting for grants awarded. The state budget office may compile the information required in this report across all departments. The department shall assist the state budget office with the compilation of the report required under this subsection.

(12) On request, beginning 75 days after the effective date of this act, the state budget office shall release information received for grant applications.

(13) As applicable, the legislative sponsor of a grant described in subsection (1) shall not sponsor a grant, or ask another legislator to sponsor a grant, if there is a conflict of interest related to the grant recipient.

(14) If the department reasonably determines that the funds allocated for an executed grant agreement under this section were misused or that use of the funds was misrepresented by the grant recipient, the department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols.

Sec. 225. (1) Within 10 days after the effective date of this act, the department must provide a report to the standard report recipients containing the following information:

(a) A list of any sections in this act that the department determines to be unenforceable, with a detailed legal rationale for those determinations, as applicable.

(b) If a determination under subdivision (a) would affect the operations of a program or programs within the department, the

department must report the estimated difference in cost between the policy outlined in the section determined to be unenforceable and the policy the department intends to pursue.

(2) The department may coordinate with the executive office of the governor or other state departments or agencies to compile a statewide report for any departments or agencies required to submit a report substantially similar to the report described under subsection (1).

Sec. 226. The department must provide a quarterly report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:

(a) Affect the operations of the department.

(b) Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(c) Affect regulations that currently protect the public to the extent that the regulations affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(d) Create a regulatory gap that could negatively impact the public.

Sec. 228. The state budget director shall take steps to ensure that all state fiscal recovery funds allocated to this state under the American rescue plan act of 2021, Public Law 117-2, are expended by December 31, 2026, as required by law. A department or agency receiving an appropriation under this part or part 1 must notify the standard report recipients if an appropriation of funds described under this section is projected to lapse.

OFFICE OF EDUCATION PARTNERSHIPS

Sec. 401. From the funds appropriated in part 1 for family and community engagement, the department shall, at a minimum, do all of the following:

(a) Establish or partner with family engagement centers across this state to increase parent and guardian involvement in their child's education.

(b) Ensure translation and interpretation services are available and implemented pursuant to department guidance.

(c) Partner with intermediate school districts to assist in getting information and resources to their constituent districts.

(d) Develop an early literacy engagement plan to help parents or guardians become involved in their child's education.

OFFICE OF HIGHER EDUCATION

Sec. 701. (1) From the funds appropriated in part 1, in addition to other statutorily required duties, the department shall do all of the following:

(a) Review and evaluate all state financial aid programs. The department shall prioritize improving postsecondary educational outcomes, including student completion rates, and improving affordability of postsecondary programs in this state.

(b) Serve as the coordinating office for all agencies of the executive branch of government that are responsible for financial aid programs administered by this state.

(c) Survey stakeholders, including public, tribal, and private not-for-profit colleges and universities, state departments and agencies, and statewide postsecondary education associations on student financial aid policy to improve this state's administration

of programs.

(d) Collaborate with the center for educational performance and information and individual colleges and universities to ensure streamlined and coordinated collection of data analyzing the following:

(i) Postsecondary education costs, including a comparison to national and regional averages.

(ii) Student enrollment.

(iii) Degree completion.

(e) Provide access to higher education institutional data inventory on an accessible, public facing dashboard to assist students, prospective students, and their families in making decisions on postsecondary education.

(f) Coordinate with other state agencies and school districts to increase utilization and awareness of postsecondary opportunities, including, but not limited to, early and middle college, dual enrollment, and private skills training scholarships.

(g) Promote, track, and provide resources to increase completion of the free application for federal student aid.

(2) From the funds appropriated in part 1, the department shall meet, at a minimum, the following transparency requirements:

(a) Collect data necessary to complete all statutory reporting requirements. The department shall notify the chairs of the house and senate appropriations committees within 10 days if an entity receiving funds from part 1 fails to comply with data collection requirements.

(b) Maintain a link on the department's website to find data submitted by postsecondary institutions through higher education institutional data inventory.

(c) Maintain a link on the department's website to the center for educational performance and information's MI School Data page on postsecondary enrollment and completion tracking.

(3) As used in this section, "center for educational performance and information" means the center for educational performance and information created in section 94a of the state school aid act of 1979, 1979 PA 94, MCL 388.1694a.

Sec. 703. From the funds appropriated in part 1 for reenrollment recruitment, the department shall prioritize reenrollment of college stop-outs. If necessary, the department may contract with private organizations for an amount up to $2,000,000.00 to accomplish the purpose of this section.

OFFICE OF EARLY CHILDHOOD EDUCATION

Sec. 1002. (1) From the funds appropriated in part 1, the department shall ensure that the final child development and care provider reimbursement rates are published on the department and Great Start to Quality webpages.

(2) In addition to the funds appropriated in part 1, upon receiving approval from the state budget director, the department may receive and expend federal child care development block grant funds at risk of being lapsed back to the federal government. The department may do this only if all of the following criteria are met:

(a) The funds are at risk of being lapsed by the end of the current fiscal year.

(b) The department plans to expend the funds through a 1-time rate increase to providers.

director not less than 30 days before the expenditure of the funds.

(3) If the average cases over a 3-month period in the child development and care program result in the projected fiscal year 2025-2026 caseloads falling below the caseload agreement from the May consensus revenue estimating conference, the department may increase the hourly reimbursement rate to child care providers if the following conditions are met:

(a) The level of expenditures for the remainder of the year is estimated to be significantly below the level estimated from the May consensus revenue estimating conference.

(b) The department plans to expend the funds through an ongoing rate increase to providers for the remainder of the fiscal year.

(c) The department makes this request to the state budget director not less than 30 days before the expenditure of the funds that includes the rate increase.

(4) Upon receiving approval from the state budget director under subsection (2) or (3), the department must notify the senate and house fiscal agencies of the amount being appropriated, the estimated rate increase to providers, and if the rate increase to providers is 1-time or ongoing in nature.

(5) The department may withdraw the intent to expend the funds under subsections (2) or (3) by notifying the state budget director in writing.

(6) In addition to annual planned caseload spending, the department shall expend the additional $23,000,000.00 GF/GP appropriated by the legislature beginning in fiscal year 2025-2026 on provider reimbursements for child development and care public assistance.

Sec. 1003. (1) From the funds appropriated in part 1 for child development and care contracted service, the department shall report to the standard report recipients on all funding appropriated to contracts for the early childhood comprehensive systems planning by this state during the previous fiscal year. The report required under this subsection must be submitted to the standard recipients by April 1 and must contain at least the following information:

(a) Total funding appropriated to contracts for the early childhood comprehensive systems planning by this state during the previous fiscal year.

(b) The amount of funding for each grant awarded.

(d) The activities funded by each grant.

(e) An analysis of each grant recipient's success in addressing the development of a comprehensive system of early childhood services and supports.

(2) All department contracts for early childhood comprehensive systems planning must be bid out through a statewide request-for-proposal process.

Sec. 1007. (1) From the funds appropriated in part 1 for child development and care ? external support, child development and care contracted services, and child care licensing and regulation, the department shall create a report that includes, but is not limited to, the following:

(a) The affordability of child care in this state, including, but not limited to, the number of children eligible for and participating in the child development and care program, the number of children eligible for and participating in the child development

and care program for the last 5 years, and key takeaways from the most recent market rate survey.

(b) The availability of child care in this state by county, including, but not limited to, the number of licensed child care providers, the change in the number of licensed child care providers and slots over time, and the estimated demand for care.

(c) The health and safety of child care, including, but not limited to, the 10 most common rule violations, the number of licenses revoked and summarily suspended, and the number of license violations for incomplete health and safety training and safe sleep training.

(d) Any actions taken to strengthen health and safety of care, including, but not limited to, the number of licensing consultants, their average caseload, the number of on-site visits they complete by provider type and region, the types of activities that are intended to improve health and safety in licensed care, and the number of times those activities are performed by licensing consultants.

(e) Information on the child care licensing process, including, but not limited to, all of the following:

(i) The number of initial applications, initial applications denied, license renewals, and licenses allowed to expire, aggregated by license type.

(ii) The average amount of time to approve or deny completed applications and a description of the most common reasons applications are denied.

(iii) A description of the types of complaints received, a description of the process used to resolve complaints, the average amount of time to complete investigations, and the percentage of

investigations completed on time.

(iv) The number of complaints received, investigated, determined to be unsubstantiated, and that result in disciplinary action or rule violations.

(v) The number of administrative hearing adjudications.

(f) The quality of child care, including, but not limited to, the number of licensed providers participating in the Great Start to Quality program and the workforce registry, the number of new participants and how participation has changed over the last 5 years, and the number of children participating in the child development and care program enrolled in an enhancing quality level or higher program.

(g) Any actions taken to improve child care quality, including, but not limited to, the number of quality consultants, the average caseload, the number of on-site visits completed by region, the types of activities that are intended to improve quality and the number of times those activities are performed, and the number of providers that have improved the provider's quality rating since the start of the current fiscal year compared to the same time period in the preceding fiscal year, reported as the number of providers in each region.

(h) The child care workforce, including, but not limited to, the number of child care professionals, average wages by role, the number of individuals participating in the TEACH scholarship and earning a credential, and the level of demand for staff.

(2) The department must post the report on the department website and send the report to the state budget director, the house and senate subcommittees that oversee the department budget, and the house and senate fiscal agencies by April 1 of the current

fiscal year reflecting data for the previous fiscal year.

Sec. 1008. From the funds appropriated in part 1 for office of early childhood education, the department shall ensure efficient service provision to coordinate services provided to families for home visits, reduce duplication of state services and spending, increase efficiencies including the home visits funded under section 32p of the state school aid act of 1979, 1979 PA 94, MCL 388.1632p, and work with the DHHS as necessary.

Sec. 1009. From the funds appropriated in part 1 for child development and care public assistance, the income entrance eligibility threshold for the child development and care program is set to not more than 200% of the federal poverty guidelines.

Sec. 1011. From the funds appropriated in part 1 for child development and care public assistance, for eligible children in the child development and care program, the department shall implement payments to providers based on enrollment rather than based on attendance. Payment implemented by the department under this section must be done in a manner determined by the department.

Sec. 1012. From the funds appropriated in part 1 for child development and care contracted services, $3,000,000.00 must be for the department to work in collaboration with DHHS to continue the network of infant and early childhood mental health consultation, which provides mental health consultation to child care providers.

Sec. 1025. (1) Private revenues received by the department are appropriated upon receipt and are available for expenditure by the department as permitted under state and federal law.

(2) Not later than 10 days after the receipt of private revenue appropriated in subsection (1), the department shall notify the standard recipients of the receipt of the funds, including

source, purpose, and amount.

(3) The amount appropriated under subsection (1) must not exceed $3,000,000.00.

Sec. 1030. (1) The funds appropriated in part 1 for the tri-share child care program must be awarded for the continuation of the child care facilitator program originally initiated and funded as a pilot project in section 1047(31) of article 5 of 2020 PA 166.

(2) The department shall establish and support tri-share regional facilitator hubs and statewide services.

(3) The department must create benchmarks for regional facilitator hubs receiving appropriated funding.

(4) Any child care facilitator receiving funds under this section must be a nonprofit, limited liability company, C-corporation, S-corporation, or a sole proprietor.

ONE-TIME APPROPRIATIONS

Sec. 1101. (1) From the one-time funds appropriated in part 1 for child development and care public assistance, the department shall begin the implementation of making payments prospectively to child care providers and begin contracting for children who are infants and toddlers, who are from underserved geographic areas, or who have a disability.

(2) Any unexpended funds appropriated in part 1 for child development and care public assistance one-time are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures to sustain the project until the expiration date of this work project as stated in subdivision (d). The following are in compliance with section 451a(1) of the

management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to begin implementing federally mandated requirements to pay child care providers prospectively, and to contract for vulnerable populations of children, including those who are infants and toddlers, who are from underserved areas, or who have a disability.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The completion date of the project is September 30, 2028.

Sec. 1102. (1) From the funds appropriated in part 1 for college success fund and student wraparound supports, the department shall provide competitive grants, of which a total of at least $1,000,000.00 must be dedicated for hunger-free campus grants, to public and private universities, as well as community colleges that support student success. The competitive grants provided under this subsection must focus on implementing best practices for student wraparound services, improving student retention, and completion of postsecondary degrees.

(2) Any unexpended funds appropriated in part 1 for college success fund and student wraparound supports are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures to sustain the project until the expiration date of this work project as stated in subdivision (d). The following are in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide competitive grants to public universities, private universities, and community

colleges to support student success with wraparound services and hunger-free campuses.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The completion date of the project is September 30, 2028.

Sec. 1103. (1) The dual enrollment task force is created within the department to study, develop, and recommend policies to improve dual enrollment access, oversight, and alignment across this state's K-12 and postsecondary education institutions.

(2) From the funds appropriated in part 1 for the task force, the department shall provide administrative services and travel reimbursements for the task force.

(3) Members of the task force shall include the following 7 representatives of state government, or their appointees:

(a) The director of the department.

(b) The chairs of the senate and house of representatives appropriations subcommittees on the department's budget.

(d) Two members of the public appointed by the governor of this state.

(4) The task force shall hold no fewer than 4 meetings during the 2025-2026 fiscal year. A chairperson shall be elected at the first meeting. The first meeting of the task force must be called by the department. Subsequent meetings must take place at the call of the chairperson.

(5) The task force shall submit a report to the standard report recipients no later than September 30, 2026, with

recommendations for a dual enrollment program.

(6) The task force shall dissolve on September 30, 2026.

(7) The duties of the task force include the following:

(a) Develop strategies to align state-level postsecondary initiatives, including dual enrollment, with broader statewide education efforts.

(b) Assess and recommend improvements to oversight and data collection for dual enrollment programs to ensure consistency and accessibility across this state.

(c) Explore the potential role of the department?s office of higher education in managing dual enrollment and postsecondary credit opportunities.

(d) Recommend statutory changes to amend the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, and the career and technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, to enhance coordination and remove barriers to participation.

(e) Propose statewide goals for dual enrollment participation and completion.

(f) Develop recommendations for improving course transferability between institutions to maximize student credit recognition.

(g) Identify potential incentives for schools, colleges, and universities to expand dual enrollment opportunities and meet statewide participation goals.

Sec. 1104. (1) From the funds appropriated in part 1 for expansion grants, the department shall identify and provide grants to head start providers seeking to expand services to include child care.

(2) Any unexpended funds appropriated in part 1 for expansion grants are designated as a work project appropriation, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures to sustain the project until the expiration date of this work project as stated in subdivision (d). The following are in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to identify head start providers in this state seeking to expand services to include child care and to provide grants sufficient to accomplish that expansion.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The completion date of the project is September 30, 2027.